What To Do If Your Austin Area Home Didn't Sell

The Austin area real estate market is on fire! So, why are there still homes that aren't selling? It could be for a number of reasons: location, level of updating, price, or lack of exposure to the market place. It could something very minor that, if addressed, would secure you an offer in no time. If you've tried to sell your home recently, and have been told that the winter months are the slow time for real estate sales, it's time to get a second opinion! The number of homes sold in Austin is up 23%, the median price has improved by 7%, and the total dollar volume of homes sold has increased 35% over this time last year! That doesn't sound slow now, does it?

To see what homes are selling for in your neighborhood, go to www.HomeValuesAustinNow.com for a Free market report.

Then contact me for my Free Consumer Report: "How To Avoid 7 Costly Mistakes When Selling Your Home".

This Month in Real Estate - December 2012

Well, it's certainly been an interesting year for the national real estate market. Check out this month's video below for details. To find out what's happening in your local real estate market, call, text, or email me for a Maximum Value Home Report or visit my website to see the most recent neighborhood sales trends on Market Insider

Where We Market Your Home For Sale

If you want to receive the highest price on the sale of your home in the shortest amount of time, maximum exposure on the internet is crucial! Just putting a For Sale sign in the yard and listing the property on the Multiple Listing Service (MLS) is simply not enough to generate the buyer interest necessary in today's high-tech environment to make the most money possible on the sale of your home. To see just a sampling of the many websites The Witte Homes Team will market your property to get your listing the exposure it needs, watch the video above. Then, give us a call at 512-994-HOME (4663) or email our owner, Heather Witte, at Heather@WitteHomes.com for a no-obligation listing consultation.

3.75% Mortgage Loan Interest Rate Available

The Texas State Affordable Housing Corporation (TSAHC) has announced a 3.75% mortgage loan interest rate for those interested in purchasing a home using the Home Sweet Texas, Professional Educators, or Homes for Texas Heroes Home Loan Programs.  In addition to the lower rate, qualified recipients will receive a grant equal to 5% of the loan amount for down payment and closing cost assistance.

To qualify for the lower interest rate, you must be eligible via one of the following programs: Professional Educators Home Loan Program, Homes for Texas Heroes Home Loan Program, or Home Sweet Texas Home Loan Program.

Additional qualifications include meeting the income and home purchase price limits, completing a HUD-approved homebuyer education course prior to closing on the home loan, and residing in the State of Texas.

For more information, please contact me at heather@wittehomes.com or (512) 994-4663.

Your Guide to the Tax-Free Weekend

Texas shoppers get a break from state and local sales taxes on August 17th, 18th and 19th - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

As in previous years, the law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend. Backpacks under $100 and used by elementary and secondary students are also exempt. A backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags. The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller.

• List of Qualifying Clothing, Footwear and Other Items - click here

• List of Qualifying School Supplies - click here

• Frequently Asked Questions - click here

• Rule 3.365, Sales Tax Holiday--Clothing, Shoes & School Supplies - click here

School Supplies

The 81st Texas Legislature passed HB 1801 (2009) expanding the list of items qualifying for exemption from Texas state and local sales and use taxes during the annual sales tax holiday in August. In addition to clothes, footwear and some backpacks, Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.

The “Fine Print”
– important information you should know about this tax-saving event.

Clothing & Footwear
Retailers are not required to collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. Exemption certificates are not required. The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99.

The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99. For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110.

The exemption also does not apply to sales of special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article. For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except for those purposes; they do not qualify for the exemption. Tennis shoes, jogging suits and swimsuits, however, are commonly worn for purposes other than athletic activity and thus qualify for the exemption.

The sales tax holiday exemption does not extend to rental of clothing or footwear; nor does it apply to alteration (including embroidery) or cleaning services performed on clothes and shoes. Additionally, tax is due on sales of accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, wallets, watches and similar items.
 
Backpacks
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday. A backpack is a pack with straps one wears on the back. The exemption includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags.

The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller.

School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.

Purchases of School Supplies Using a Business Account
Persons buying qualifying school supplies during the holiday are not required to provide an exemption certificate – with one exception. If the purchaser is buying the items under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. "Under a business account" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.


Layaways and Rainchecks
Layaways
A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday. See Rule 3.365(i).

Rainchecks
Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase. See Rule 3.365(j).

School Supplies
Texas families also get a sales tax break on most school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.

For more information:
www.window.state.tx.us

Unbelievably Low Price for Spacious 1-Story

Immaculate Single Story in Sendero Springs

Minutes to Dell Children's, UT, & DT Austin for Only $165,000

Welcome to the first video in the series, "Seller Secrets". If you or someone you know has considered selling a home in today's market, these videos will offer some invaluable advice to help you net the most money in the shortest amount of time. For a free pricing analysis on your home, visit my website: http://www.sellingaustintxhomes.com/sell and please feel free to call me with any questions!

Seller Secrets: How Buyers Search for Homes

Think Big Work Small: Pin the Tail on the Real Estate Donkey

Rents in Denver are at a 10-year high and went up over 4.5% over the last year, which is the largest 1-year increase since 2001. OK, we're in Texas, so why should you care about what's going on in Denver? Well, if you don't remember what was happening to home values in 2002, check out the video below to get a look into the future, or maybe it's the past. Well, changes in the real estate market happen in cycles, so history will repeat itself, and you can reap the benefits if you play it smart.

The Ten Biggest Mistakes Buyers Make When Buying a New Home

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Buying Too Much House

It is important to be able to enjoy your new home. One of the biggest blunders that inexperienced or overzealous buyers make is to jump right in and get way too much house. How much is too much?  If your mortgage is going to burn a hole in your income more than 35%, then it’s time to reconsider. Make sure you can afford to pay recurring expenses while leaving some room to breathe in the process. Just because you may have prequalified for a certain amount does not mean you can “afford” that much house.

Skipping a Home Inspection

We have all seen the horror stories broadcast across home television networks – so much so that there are teams of people trying to educate homebuyers on the importance of a home inspection. What can you stand to lose by skipping the inspection?  Anything from faulty structure to chemical exposure or pest infestation or more – can set you back thousands or tens of thousands. Better to be safe and spend a few hundred dollars than to be sorry.

Not Getting Everything in Writing

Just because a seller said you would get to keep the swings set does not necessarily mean you will get it – unless you have it in writing. Too many buyers fail to get things put into a formal contract. In fact, many brokers and agents have specific forms to avoid just that. Make sure every agreed upon item is formally written down, signed by both parties and includes any necessary details.

Not Doing Homework

You can never have too much information when buying a house. In fact, knowing as much as possible about the property, its history, surroundings, neighborhood and community are instrumental in making the right decision. Another important thing to know is current local market conditions. What are other homes in the area selling for?  What is the life of the average property in the neighborhood?  Are prices stable and is it a sellers’ market or buyer-controlled?  A quality, experienced Realtor will help you find out all this and more relevant information – key to finding the perfect home.

Buying the Most Expensive House in the Neighborhood

Even though it may seem like a good purchase – buying the most expensive home on the block is not the best move to make. No matter what you think your long term intentions are for the home, just the chance that you may want to sell in the future is enough to forego buying the priciest home in the neighborhood. Consider this: if you do end up moving, sellers will be turned off by the most expensive price tag making it harder to sell. Not only that, the home’s value is also dependent on other homes in the area – something that could backfire eventually.

Moving Too Quickly

Since buying a home is the largest financial transaction in most people’s lives, it is important for them to pace themselves. Hastily acting on the first home you see will limit you from countless options. While there should be a reasonable limit – it’s a good idea to see more homes than fewer. If you have a list of must-have items, try to achieve all or most of them in your search. You can’t do that if you jump at the first home and sign the dotted line too quickly.

Buying a Misfit House

A lot of buyers are wooed by the lifestyle and living arrangements of the homes as displayed by sellers. Once they move in, they realize things like the oversized lawn is way too much work or that the high-end finishes are too much to maintain with their young family. It is essential to keep your lifestyle in mind when searching for your next home. The last thing you need is to regret or feel buyer’s remorse when it’s too late.

Forgetting to Zoom Out

Many buyers are enticed by the number of rooms a home has, a high-end kitchen or the home’s spaciousness, without considering other aspects of living there. When they have moved in and realize their next-door neighbor runs a daycare or the nearest grocery store is twenty minutes away – they regret it. Remember to research the surroundings in the area to make sure that it’s still your dream home even after zooming out of just the house itself.

Failing to Protect Themselves

There is a reason for contingencies in an offer and without them things can get messy. When buyers neglect to outline the terms or if they choose to waive some important contingencies in the interest of securing the home, they are taking a huge risk. Common contingencies not to forego are the right to a home inspection prior to sale with the sale dependent on inspection results or availability of financing or setting a move-in date that coincides with the sale of the buyer’s previous home.

Foregoing Prequalification and Preapproval

Driving around and looking for a good home is fine but when it comes time to getting serious about the sale, unless you are prequalified and preapproved, you could easily get the short end of the stick. Buyers that don’t pay much attention to this important buying strategy actually end up losing their dream homes because the seller chose to accept the offer from someone that did this important step. Prequalification allows you to know your budget range according to the lenders’ calculations made based on your income, etc. A preapproval is a written statement from your bank saying that you have been preapproved for a loan. Sellers prefer offers that come with both, especially in today’s housing industry with savvy homeowners and buyers.
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Do you want to make sure everything you’re doing is spot on?  Call or visit us today so we can review your options, help you determine what your perfect home is and introduce you to your new home!

10 Ways to Increase the Value of Your Home

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Siding and Exterior Paint

One of the fastest ways to make a better first impression with buyers is to paint the exterior of the home and, if needed, to replace the siding. A fresh coat of paint will freshen up the exterior and modernize the appearance. Just be sure to use colors that will appeal to the largest number of buyers (sherbet orange is probably not a good choice). To experiment with different colors and schemes, try using virtual painting
programs available at many paint manufacturing websites like Benjamin Moore Paints.

Windows and Doors

By replacing old windows and doors with stylish and efficient alternatives, you may be able to attract buyers who may otherwise pass on your home only because it is a little more mature than its competitors. Although the choices can seem endless, by carefully reviewing the homes that are actually selling, you should be able to narrow down your choices. Also be sure to keep your proof of purchase for tax reasons.

Landscaping

Investing in new sod, rock, shrubbery, and trees can turn a tired looking front yard into an inviting space literally overnight. If you don't have a green thumb, check out landscaping.com for ideas. In addition, consider how your home looks when many buyers are still cruising the streets. Installing new lighting fixtures can both enhance the home's ambiance at night and modernize the exterior during the daylight hours.

Flooring

Your home's floors need to be clean, modern, and stylish. They should tie the home together and flow seamlessly from one room to the next. So how can you be sure you don't pick a carpet or floor covering that
buyers will hate? Ask for advice from your Realtor because the work with buyer's so they would know what flooring today's buyers want in a given neighborhood.

Kitchens

If your kitchen needs a face lift, consider updating the cabinets and countertops as well as the plumbing fixtures. However keep in mind that your home only has to be comparable to your neighbors' homes - it doesn't necessarily have to surpass them. For instance, purchasing granite counters may not impress value shoppers and may turn them off if they believe they will have to pay more for the home because of the higher cost. Want ideas on kitchen designs that will impress a buyer? Check out HGTV for inspiration.

Bathrooms

Let's face it, we all spend a lot of time in the bathroom. So it's no wonder buyers want their new bathrooms to be user friendly. New toilets, tubs, and cabinetry can be a big investment, but small projects like cleaning or replacing tile grout, re-caulking, and repainting can make old bathrooms sparkle. Pay special attention to the little things like chipped sinks and tubs, exhaust fans that may need cleaning, and dated light fixtures. For ideas and design tips visit KitchenBathIdeas.

Lighting

If swag lamps are still hanging in your living room, it may be time to update your home's lighting scheme. A well lit home can accent the best features of each room and provide buyers with a classic case of the warm fuzzies. For instance, under-cabinet lighting in the kitchen can show off a unique view of the counters, while canned lighting in the living room can be used to highlight décor and design elements that might be missed otherwise.

Interior Painting

Look inside almost any model home and you will quickly find that white is out and color is in. Of course, that doesn't necessarily mean you can grab the nearest color wheel and paint brush and go to town. Colors still need to match each other and blend in with the décor of the home. Try to use accent walls to punch up the impact of your colors and visit local design centers and speak with your Realtor for more ideas.

Roof and Foundation Systems

To ensure that you receive top dollar for your home and avoid a deal breaking inspection report, now may be the time to get these areas of your home in order. Lenders often want to know that a roof will last at least another 3-5 years and that the foundation is keeping the entire home off the ground without any apparent failures.

Deep Cleaning & Decluttering

The least expensive thing any seller can do before marketing their home is perform a deep cleaning of every surface in the home. A bucket, some soap and water, and a few rags can transform nearly any home into a show-ready model home. But don't skimp. You need to dig in and get dirty, and yes, that means you have to clean under the stove and refrigerator. You're moving so start packing all non-essential items. Buyers need to envision their furniture in the home and they don't need to be focusing on your pictures and nick-nacks. Not sure how to start? Visit The Housekeeping Channel for guidance.

Overwhelmed? Don't be. Pick one or two items on this list that fits your budget and jump in. Work your way down the list, and you will know that you have made every attempt to put your home in the best position possible to impress a buyer.

Austin real estate market continues to show momentum with 9th month of year-over-year increases in sales volume

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Austin Board of REALTORS® releases February 2012 real estate statistics

AUSTIN, Texas – March 20, 2012 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, 1,283 single-family homes were sold in the Austin area in February 2012, which is 16 percent more than February 2011. During the same time period, the median price for Austin-area homes was $195,000, three percent more than the same month of the prior year.

Leonard Guerrero, Chairman of the Austin Board of REALTORS®, commented, “For nine months in a row, Austin has seen year-over-year increases in sales volume. In addition, we also saw a modest increase in the median home price in February 2012, which could indicate more competition among buyers for a shrinking inventory of homes.”

In February 2012, the Austin market had 4.2 months of inventory, 1.5 months less than February 2011. In addition, the market featured nine percent more new listings, 20 percent fewer active listings and 25 percent more pending sales in February 2012 compared to the prior year. On average, homes spent 86 days on the market in February 2012, 12 days less than February 2011.

February 2012 Statistics

·         1,283 – Single-family homes sold, 16 percent more than February 2011.

·         $195,000 – Median price for single-family homes, three percent more than February 2011.

·         86 – Average number of days that single-family homes spent on the market, 12 days less than February 2011.

·         2,538 – New single-family home listings on the market, nine percent more than February 2011.

·         6,862 – Active single-family home listings on the market, 20 percent less than February 2011.

·         1,926 – Pending sales for single-family homes, 25 percent more than February 2011.

·         4.2 – Months of inventory* of single-family homes, 1.5 months less than February 2011.

·         $324,906,920– Total dollar volume of single-family properties sold, 22 percent more than February 2011.

The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in February 2012 was 122, which is 15 percent more than February 2011. In the same time period, the median price for condos was $176,000, ten percent more than February 2011. When compared to the same month of the prior year, these properties spent 26 percent less time on the market, or an average of 84 days.

Leasing
In February 2012, 1,104 properties were leased in Austin, which is one percent more than February 2011. The median price for Austin-area leases was $1,250, or four percent higher than the same month of the prior year.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced. 

Overpricing Can Be the Worst Strategy When Selling a Home

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We’ve all seen them – homes that are on the market and priced so high you have to wonder if the sellers are setting their asking price based on home values from another decade. But if you think about it – the goal of these people is to end up with more money in their pocket at the end of the day.  The truth is that when sellers price their home for more than what the market dictates it is worth, there are some pretty dire circumstances.  Here are three reasons why you should shy away from pricing your home too high, and make a concerted effort to price it effectively.

Buyers Don’t Like to Deviate Too Much From the Asking Price

Whether because of perceived rigidness on the part of the sellers, or to save themselves the embarrassment of their offer being rejected, many buyers shy away from bidding on homes that are overpriced.  They have no idea why the seller may have priced the property so high, and the last thing buyers want to do is waste time in a bidding tug of war only to be the loser at the end of the day – so they don’t make an offer.

There is a Misconception That Sellers Know Their Home is Overpriced

Many buyers mistakenly believe that the seller knows their home is overpriced. The buyers think that if the seller is willing to accept a lower value that they would just price the home accordingly in the first place. to accept a lower value then they just priced the home accordingly.  An overpriced listing is a turn off to serious buyers. So rather than mess with it, they move on to other properties, and an offer fopr the overpriced home never makes it to the table.

Buyers Assume That Previous Offers Have Been Rejected By The Seller

A home that is priced higher than it should be gives the impression that the seller is not willing to budge.  Buyers take one look at such properties and assume that previous offers were probably made based on the property’s fair market value and the seller refused to negotiate.  In actuality, these homes almost never receive offers, leaving the seller in the dark and the buyers to move on to other properties.
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The single biggest financial disadvantage of listing a home too high is that it won’t sell and the seller will either have to channel more money into the home to get some offers on the table or they will have to reduce the price to get it sold.  The interesting thing is that the reduced price is often lower than what would have been the asking price had the home been priced effectively in the first place.

Homeowners that end up pricing their home too high usually spend thousands of dollars more than they were trying to save in the first place.  By practicing our tips and remaining aware of the reasons why overpricing is the worst thing you can do, you can sell your home for a great price instead of being one of the last houses on the block yet to sell.  To learn more about great pricing strategies visit your Realtor to get customized, professional consultation.  Nothing beats working with someone that knows the industry well!

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TIPS ON HOW TO PRICE A HOME  

* Do your homework to find the current home value of your home.  A Comparative Market Analysis (CMA) is best done by a professional Realtor. You can also get an appraisal done – something that will help in the lending process plus justify your asking price)

* Give your home the TLC it needs so it is an attractive catch to potential buyers.  That’s a great way to justify your price.  If you can’t get to the items that need fixing or you would rather leave the aesthetics to your buyers’ so they can cater to their own tastes once they move in, be sure to reflect that in your price.

* Don’t get caught up in old prices that are no longer relevant in today’s buyer’s market.  Price your home based on today’s statistics and be prepared to corroborate the figure with current market data that supports your number.

Use Mobile Devices to Search for Your Dream Home While On the Go and Save Time

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If there had been 36 hours in a day, most of us would have had plenty of time to find that perfect home but if you’re busy in your daily lives like almost every other person is these days, chances are you barely have time to get to the basics. So when it comes to looking for your dream home, where and how do you find time to attend open houses, spend countless hours searching real estate publications in print or on the web or even consult with your Realtor?

To help make it easier, we’ve put tougher a great tool that is designed especially for our area right here in Austin. Just visit the website at www.witthomes.com and the rest is really easy. To make it even simpler, there is a video above that shows exactly how to access each key area on the site so that you can be on your way to enjoying fast, reliable and accurate listing information – all at your fingertips and all in real time.

The Advantage and Edge of Searching For Real Time In Real Estate

While others that see a property and call their Realtor right away to express interest have to wait for their agent to return their call, you can be on your way to viewing details of the property and even deciding whether to shortlist it. Our web tool also allows you to customize alerts that correspond with your saved search settings. So that means each time a property that matches your criteria is listed on the site, you are instantly alerted and can immediately take action. How many prospective buyers can act that fast?

Another great benefit of conducting your searches and using the web-based tool that we offer to assist you in your search is your ability to remain on top of significant changes made to properties that are on your shortlist. This may include price reductions, changes in terms, new offers or additional seller concessions and/or buyer incentives being posted.

Supplementing Face Time With Your Agent

While nothing will replace the significance of having your agent consult with you on properties you have selected or at least are considering – the ability to prepare in advance is very useful. You can utilize listing information obtained in advance to put together a comprehensive list of questions for your Realtor. The more organized you are as a buyer, the better your Realtor will be able to serve with more efficiency. When you use the tool as a supplement to your existing relationship with your agent, it works very well. In fact, if an agent comes across a property that he or she feels may suit your needs, they could refer you to the site no matter where you might be at the moment the listing becomes available online – and you could be viewing it instantly! Equally, if you find something that strikes your interest, a quick call to your agent could get things started so little time is wasted in getting you your perfect home.

National Giants Versus Localized Community

As a client of our firm, you will be able to reap benefits of having access to exclusive listings through our MLS service – and you will access them in real time. We update our properties quickly and strive to achieve optimal results based on your search criteria. Since we understand the region better than those operating a national-level home search tool, ours will provide excellent results to serve you better.
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We invite you to come visit our website and the next time you’re waiting in line somewhere or have a little downtime, start searching so you can see how easy it is to find your dream home while on the go!