SellAustinTexas

Photo taken at: Bella Tesoro

Reasons to Buy a Home Now

The Buyers Market

1.  High Inventory: There is currently a balance of supply and demand that leans in the buyer’s favor. High inventory leaves a buyer with many available choices, and in all price ranges.

2.  Negotiating Power: The high inventory also allows for decreased prices and more negotiating power for the buyer. Not only can a homebuyer find their dream home, but they can do so for a great rate.

Home Prices

3.  Home Prices: Prices have come down a great deal from years past, and will only continue to rise over time.

4.  Interest Rates: With interest rates also at the lowest point in years, a single housing payment is going farther than it did in the past. Interest rates will not remain this low, and are expected to rise again soon.

Tax Savings

5.  Tax Deductions: Buying a home allows for many tax deductions, such as mortgage interest, mortgage insurance and real estate taxes. This means that after taxes, your mortgage payment will be lower than a rent payment would have been.

6.  Tax Credit: The new tax credit for homebuyers has been extended through spring, with an $8000 credit for new buyers and a $6500 credit for repeat buyers.

Personal Savings

7.  Appreciation: Home prices always move upward in the long run, appreciating the value in a home.

8.  Equity: If you have an amortizing loan, each mortgage payment is building equity in your home. It is such a gradual change many people don’t notice it, but it is allowing you savings.

9.  Rising Rents: Rents are expected to continue to rise.

Incentives and Extras

10.  Material and Non Material Extras: With the buyer’s extra sway in negotiations, you are able to ask for things that may not have been previously included, such as material items (like appliances) or non material items (such as a home warranty) as part of the purchase of the home.

11.  Home Improvements: Many sellers are working hard to make their homes move in ready, with extra home improvements and updates.

12.  Maintenance Costs: With updates and repairs before the home’s purchase, a buyer can save money in maintenance along with having a newer looking home.

The Worker, Homeownership and Business Assistance Act of 2009 was signed into law on November 6, extending the $8000 First time homebuyer tax credit for those who put a house under contract before April 30 and close before June 30, 2010.

The act also expands the credit to include a $6500 credit for current homeowners who have owned a home for any consecutive five year period in the last eight years. This last requirement is to accomodate those who may have just recently lost their homes from changes in the economy. The income limits are also changed to include those with higher incomes. 

For more information, you can visit www.federalhousingtaxcredit.com or see the IRS Newsroom release here.

According to the EPA, the Energy Star program is celebrating reaching the one million mark throughout the nation. Even more exciting news for Texans, 28% of these homes are in the Lone Star State. The country’s fourth biggest city, Houston, tops the list of most Energy Star homes. Also appearing in the top 20 are San Antonio, and at #14, Austin.

Energy Star homes will save an average of $200-$400 this year on utility bills, and $270 million nationwide. They are at least 15% more energy efficient than regular homes and will save 4 billion pounds of greenhouse gas emissions. 

Call your Realtor today about your future Energy Star home. 

Sandy Ranch

CNN Money’s article “What Housing Bust?” covers what areas of the nation have done well in the housing market, and why. According to writer Les Christie, areas with plenty of available developable land have smaller swings between home price highs and lows. This is because, when the demand for housing spikes, home builders are able to build more homes and keep the housing prices in check. Speed is also of the essence here, home builders need to be able to build quickly, thus, the need for available land.

“Elasticity of supply,” this is called, according to Mark Fleming, chief economist for First American CoreLogic. And Christie says, it is the definition of Texas real estate, and similar throughout all the metro areas.

“Texas is the poster child for these ‘steady Eddie’ states. House prices during the past three years rose in all 26 metro areas with gains ranging from 2.8% for Dallas, the second largest metro area, to 9.7% in Houston, the largest, to a whopping 32.5% in Odessa.”

This is part of what is causing the metro areas in Texas, including Austin, to grow so rapidly. Landowners in the Austin area should continue to see their investments in high demand for buyers and developers.

The results are in, and Texans have voted to pass all 11 proposed amendments to the state constitution, including those we’ve reported on, for appraisal reform.

Proposition 11, which limits the government’s power to eminent domain, was hugely popular and passed by an 80-20 margin. ”The amendment bans governments in Texas from seizing private property and giving it to a private developer to boost the tax base,” reports KXAN News.

Over 43,500 residents voted in Travis County.

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If you’re used to not voting when it isn’t a big ticket year, or if you’ve never voted before, skipping your chance to vote this year may be a mistake you’ll be paying for, for a long time. Some of the propositions on Texas’ ballot this year deal directly with home values and appraisals, and it’s important that we understand what we’re voting for and why, even if someone would still decide it’s not important and not go. Even if you don’t own a home now, it may be an issue that affects you in the future. Here is a re-print of October 16th’s blog.

November 3^rd’s ballot in the State of Texas won’t have the same hot button races as a presidential election year, but the propositions on it will directly affect Texas homeowners and their money, right now and in the immediate future. The language can be tricky and there is misleading information floating around from misinterpretation, but it is important to understand the proposed amendments and vote.

Gabriel Lopez wrote a great column translating the amendments into simpler terms. The Houston Chronicle also offered an interpretation. There are a few amendments in question, namely, Propositions 2, 3, and 5.

Proposition 2

As it will appear on the ballot: “The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead.”

What it means: We’ve talked about the increases in appraisal rates in the state. Currently, “the central appraisers are using a practice called ‘highest and best use,’ which allows a property to be valued on potential use rather than current use,” Lopez writes. In other words, if this amendment passes, if an area is experiencing rapid commercialization, the land can’t be valued for the potential value – it will mandate “that a residence be valued only as a residence, regardless of what the ‘highest and best use’ is.”

“This amendment is intended to protect less affluent homeowners from situations in which rapid commercialization in their area threatens to drive up property taxes unreasonably year after year,” writes the Chronicle. “…such development can occur quickly and with potentially difficult consequences for homeowners. The measure would be strictly limited to residences qualifying for the home-owners exemption, thus eliminating the potential for use by speculators.”

Proposition 3

As it will appear on the ballot: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.”

What it means: This amendment is another reaction to the state appraisal policies leading to inflated rates recently. It would require uniformity in appraisal processes statewide, allowing the state to have oversight and enforcement over every district. “This is important because state funding for public schools is based on the taxable property in each school district,” says Lopez.

Writes the Chronicle: “Unfortunately, the proposition has been plagued by Internet rumors that it is a back-door method to introduce a statewide property tax. It is no such thing, assures state Sen. Tommy Williams, R-The Woodlands, an author of the amendment. Williams says it is simply a means to achieve uniformity of appraising methods in the interests of more equitable appraisals in all areas.”

Proposition 5

As it will appear on the ballot: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.

What it means: The board of equalization would hear appeals from homeowners regarding their home’s appraisal value. It can be difficult to find qualified individuals for these boards in rural and less populated counties; this amendment would assist them. “It is written to be ‘permissive,’ which means a larger entity cannot force a smaller one to participate without its consent,” says the Chronicle.

Along with the Houston Chronicle, The Texas Board of Realtors endorses “yes” votes for propositions 2, 3, and 5. A quick, concise flyer is available here.

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If you’re working at the new Seton hospital in Kyle and interested in purchasing a home in San Marcos, you may qualify for a forgiveable loan to use as downpayment on your home.

From the San Marcos Record: “the Seton employees incentive offer would provide $50,000 to be given out as 10 ‘forgivable’ down payment assistant loans that the employees would be required to use toward the purchase of a San Marcos home that would be their primary residence. Each year, 20 percent of the loan would be forgiven if the homeowner continues to be employed at Seton and continues to live in the home. The entire loan would be forgiven if the homeowner meets those obligations for five years.”

“With its recent opening in the city of Kyle, Seton Hospital will be a major employer in the region drawing highly trained health care professionals, technicians and other personnel,” says the research. “The presence of the hospital an its employees will create a significant economic impact in the region.”

If you’re interested in a home in the San Marcos/Kyle area, or anywhere in greater Austin, contact your expert Realtor today.

HAPPY HALLOWEEN!

Austin, Texas always has exciting happenings going on for this fun holiday.  If you’re in need of a costume to dress up, there are many Halloween stores to choose from, but your best choice might be South Congress Ave favorite Lucy in Disguise, full of top quality costumes, wigs, and accessories for sale or rent.

Then, there’s no better place to show off your costume and see others than 6th Street. There you can find any sort of live entertainment or dining to suit any taste. “Ghost Tours” in the the state capitol, rumored to be haunted, or through other hotels and buildings that are centuries old, can be a fun activity not for the faint of heart. There are also plenty of haunted houses created for Halloween, in the area, if you’re looking for a good show.

Many activities are available for families with little ghosts and goblins, as well, and run all weekend. If you are looking for some Halloween fun in Austin, try the Austin360 calendar.

And from the Dave Murray Team, have a safe and delightfully spooky Halloween!

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