Roselind Hejl's Austin Texas Real Estate Blog

Austin Market– January, 2012: Inventory is the Story

2012-01-27T11:08:00.000-06:00

Our end-of-year look at the at the Austin real estate market tells a simple story – demand is exceeding supply. The overall months of inventory for the Austin area is at 3.61. By comparison, 2010 ended the year with 5.1 months of inventory; 2009 ended with 4.6 months. We have moved from a balanced market into seller’s market range for most areas.

Newcomers moving in and investors attracted by low interest rates have put steady pressure on inventories in all parts of Austin. Jed Kolko, Trulia’s chief economist recently offered this prediction: “The bloom’s not off the yellow rose of Texas. Steady job growth and a construction revival make Austin and Houston two of my five cities to watch. Texas isn’t hung over from the housing boom like the other big states of the South and West, so there’s little to hold back growth. “
Austin was Kolko’s top pick for growth cities to watch. And, a look at the inventory levels throughout Austin shows that he is right on the money.

Inventory Levels

Inner Core Neighborhoods: 75% seller’s market; 25% balanced markets.

Close in Suburban Neighborhoods: 94% seller’s markets; 6% balanced markets.

Outer Suburban Neighborhoods: 42% seller’s markets; 37% balanced markets; 21% buyer’s markets

See more detail by areas here: Months of Inventory by Area

Demographics

Demographics are on our side. There are 1.763 million people in the Austin area. By 2020 this is expected to increase by 31% to 2.3 million. To supply an additional 198,000 households, assuming that 50% buy homes, we need 99,444 new homes. This means we need 11,000 new homes per year over the next 9 years. In actuality, builders supplied 5,900 new homes in 2010 and 6,100 in 2011, and production is estimated at 6,500 for 2012.

So, we expect that job and population growth, plus investors who prefer real estate over the more volatile stock market, will continue to fuel the demand side.

Tempering Factors

On the other hand, there are certain forces that have moderated and slowed down the demand side.
First, there is the backlog of foreclosures held back by legal issues and botched paperwork. There is also shadow inventory – loans in default that will be foreclosures or short sales. These will continue to add to inventory and hold down prices. But, not to great extent. The evidence is clear that distressed properties have not defined our market. The foreclosures that do come on the market are quickly absorbed – often with multiple offers.

Foreclosures in Austin:

2009 – 3.75% of market
2010 – 5.0% of market
2011 –4.25 % of market

Second, many newcomers have chosen to rent a home while they get settled or sell their home in another city. This has resulted in the highest occupancy rate for apartments in 25 years – about 96% occupancy. In many areas, single family rental homes are in very short supply. Of course, the short supply has raised rental rates. Eventually, these renters be ready to buy homes, and will add to the demand side of the market.

Third, there are still hurdles for buyers in getting financing, especially in the upper end. The cumulative effect of new regulations and conservative approach by appraisers have dampened mortgage momentum. If the appraiser cannot support the sales price, under tough comp requirements, the deal is likely to fall through. Even if the buyers are able to add more down payment, they are usually reluctant to proceed without confirmation by the appraiser.

And, fourth, anxiety concerning national and international financial conditions affects the real estate market, and we are not immune to that in Austin.

Yet, these dampening effects have not stymied demand for homes. They have slowed the pace of the market and kept demand from getting so strong that prices escalate quickly.

Conclusion

Overall, we are starting 2012 in the best of both worlds. Reduced supply is always good news for sellers. And buyers still have best-in-a-lifetime interest rates that can be locked in for 30 years.
Austin is simply a great place to live. We know it, and the word is out. That is the real story. And, for those who invest for the long term, the story has a happy ending.

If you have a real estate question, please feel free to callor email - and join me on a social media site.

A big thank-you to all of you who have sent us friends andassociates who need to buy or sell houses! Keep sending!

Roselind Hejl, CRS

Coldwell Banker United Realtors

512-327-0385 - Direct

512-789-4563 - Cell

www.weloveaustin.com

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It’s Time to File Your Homestead Exemption for 2012

2012-01-18T20:08:00.001-06:00

If you bought a home in 2011, it is time to file for your Homestead Exemption. This will lower your property tax bill for as long as you own the home and occupy it as your principal residence.
After buying a home, you become eligible for a Homestead Exemption on Jan 1 of the following year.   So, for homes purchased in 2011, the time to file is between Jan. 1 and April 30, 2012.
The county appraisal district will send you a form to mail in to them. If you don't receive the form, I have included some links to get the form online. There is no charge, and you only need to do it once.

When you send in your form, you will need to include the following two items as proof that you live in the house where the exemption is claimed. The address on both of these forms must match the address of your home.

1.     Copy of Texas driver’s license (or ID card)
2.     Copy of vehicle’s registration receipt

(If you do not own a vehicle, you may send a utility bill and sign an affidavit for non ownership of a vehicle.)

There are additional exemptions that you may qualify for, such as the Over 65, the Disabled Homestead, or the Disabled Veteran’s exemption. Here are links to get the forms, plus general info about property tax exemptions.

Travis County Application

Williamson County Application

Hays County Application

General Info on Property Tax Exemptions

Feel free to call if you have a question about this or anything else we can help with.   I would love to help someone you know find a new home in 2012!

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
www.weloveaustin.com

P. S. Don’t respond to this scam: An official looking letter is usually sent to new homeowners with a bill for filing your house as a homestead in the deed records. This is not necessary, and will not lower your taxes.

Modern Master Bath Update

2012-01-11T15:10:00.001-06:00

My clients, Dawn and Ray, chose a classic 1990’s vintage home for its quiet neighborhood and easy walk to school and library. This was a three bears kind of house – not too big, not too small - just right. Dawn is a children’s book writer and artist. And, you could say that she began to re-write the story of this home from the moment she moved in. Its been fun to watch her sort it out and find the way, relying on her own artistic sense.
Her latest project has been the master bath…

Here is the entrance to the Master Bath – typical 1990’s style, with panel doors, beige carpet, white tile, and big 6" cans in the ceiling. Mostly, the space was kept as is, but that wall on the right with the thermostat had to go!

Wow! See the difference? The door was made from a large mirror that Dawn had intended to hang. Kai Mueller, her carpenter, added hardware to create a barn door that glides along the wall.

Here is the original vanity, with mirrored wall, accent tiles, and chunky cabinet doors.

Ahh! Now there is a sophisticated new vanity! Home Depot installed the white Silestone counter. Faucets are California Faucets from Ferguson Plumbing. Candle sconce lights, by Sonneman, were ordered from All Modern.

Kai Mueller made the floating vanity cabinet and mirror frame from walnut hardwood. Hardware was selected to go with the faucet style. Find the pulls at Lowes or Ikea. Binswanger Glass installed the mirror glass and shower door.

Here’s a glimpse of the old linen cabinet and main closet.

A set of deep drawers and upper cabinet replaced the old linen/clothes hamper. So pretty and functional!

The white walls and floor contribute greatly to the simplicity and expansiveness of the space. Walls are Simply White by Benjamin Moore.

Crown molding and ornate door and base were redone in a contemporary 1" x 6" style.

Floors are 12” x 24” porcelain tile from Floor & Décor. They have a light ribbed look, which adds to the organic feel.   The mirror in the closet opens to reveal the shelves behind.

A look back at the original space – very pretty, but not in the modern style that Dawn loves.

The tile adds some texture and natural color to the walls - a subtle, stone like color. Tiles are honed marble, 2” x 4’ subway style, from Floor and Decor. The shower floor is done in flat river rock.
By working with the existing plumbing and space layout, Dawn avoided unnecessary cost and difficulty. She kept the focus on modern styling, and used readily available materials. The result is clean, modern, serene – and very doable.
BTW, Dawn tells me that the glass block window is on the hit list. This story’s not over!

Chelsea Moor Makeover: Rediscovering White

2011-08-12T19:33:00.003-05:00

We used to love white on interior walls. In fact, our paint of choice was “mixing base white with white pigment added.” However, over the last 10 years, we moved toward color.   Warm colors like taupe, beige, and whole wheat seemed necessary for warmth and style. White was considered stark or unfinished - like primer on the wall.
So when it came time to choose a color for Chelsea Moor, we put up some color samples. Balance Beige (Sherwin Williams) was a contender – think beige-taupe on whole wheat. When we put it up, the strong light in the room washed it out, and an underlying pinkish tone showed up. (Not good.)
I know this is counter-intuitive, but I think that low light rooms need color - even dark colors - to add richness to the space.   In strong light, paint colors tend to lose their richness and depth.
We also realized that color on 8’ walls, with white on the ceiling, tended to highlight their shortness. Plus, colored walls with white ceilings evoked the popcorn ceiling look. And finally, the living room ceiling was vaulted, so color against a white ceiling would create a silly angled line.
Actually, these walls were screaming for white.   But which white would be right? Picking the right white is no small matter.   I turned to Remodelista – a design source that I read daily. Their post on whites most used by architects was a great help.   The top choice for an all purpose white was White Dove by Benjamin Moore. They called it “clean, calm and a great backdrop for art.” Since we use Sherwin Williams, I chose a close match – Greek Villa. This is a slightly warm white with no hint of any specific color.
We painted the walls, ceilings and trim all the same - flat paint on the walls and satin on the trim.   The white color expanded and simplified the space, making the walls a backdrop for a more important element - light.

Dining room in process: Sunlight streams in and bounces off walls creating an active, changing environment.

Dining room before: The dining room was made from this old sun room.

Dining Room in process: An underlying design goal was to connect the interior to the outdoors. Landscaping will help the “outdoor room” rise to the occasion. There will be no window coverings. No window coverings at all.

Kitchen taking shape: Architectural features are highlighted by soft shadows. The island and base cabinet were painted a dark grey (Porpoise by SW) to ground them and connect to the concrete floor.

Kitchen before: We incorporated the old breakfast area into the new kitchen. The kitchen opens to the new dining area, which was the old sun room – behind the window on the left.
Thanks for sharing our Chelsea Moor remodel!
Roselind Hejl
www.weloveaustin.com

Chelsea Moor Makeover: DIY Concrete Waxing

2011-08-06T20:21:00.003-05:00

We love the cool, hard surface and relaxed lifestyle of a concrete floor. The photo above is from our own house. John and Marie wanted to have a similar floor in their Chelsea Moor remodel. They like the mottled, imperfect look of unstained concrete.
We have waxed concrete floors several times in the past on new construction, so have some experience in this. However, the Chelsea Moor project involved re-finishing old abused concrete. So, before waxing, we had to work through two levels of preparation:
Chelsea Moor Makeover: DIY Concrete Refinishing
Chelsea Moor Makeover: DIY Concrete Patching

Now it is time for the waxing. We have an Edco Floor Maintainer, bought from Lowe’s rental department for $270. This is a heavy machine. It takes two people to lift it out of the truck. A stiff brush attachment fits on the bottom. The brush builds up heat as it turns and burnishes the wax into the concrete.

The wax we use was Stone Tone Wax by Kimiko, purchased at The Stain Store in North Austin. It may be bought in oil or water base. The oil base wax tends to darken the concrete a little more than the water base.

How-To:
First, pour some wax into a small plastic container to work from.
Then pour about 1/2 cup wax on the floor. If you pour too much wax at once it will not burnish into the concrete fully, and will leave a sticky residue.
Plan to cover about a 4 x 4 foot area with 1/2 cup wax.
Run the heavy buffer over the wax slowly to spread it and rub it into the concrete.
Continue buffing for about 5 minutes to built up heat and burnish the wax into the concrete. The wax fills the pores and seals the concrete.

The color of the concrete will darken slightly when the wax is put down. Here you can see the color enhancement in the waxed area.

The waxed floor will be slightly glossy and smooth to the touch, similar to a smooth stone.
The re-use of old concrete is a green choice. Concrete lives well – it does not hold dust and is very easy to clean with just a damp mop. And, the clean hard surface goes well with modern simplicity.

Concrete Experiences – Round One
Concrete Experiences – Round Two
Concrete Experiences – Keeping Cracks in Line

Thanks for sharing our Chelsea Moor makeover!

Roselind Hejl
http://www.weloveaustin.com/

Chelsea Moor Makeover: DYI Concrete Patching

2011-07-23T14:11:00.003-05:00

A concrete floor is central to the design of Chelsea Moor. We all love the cool hard surface and easy living of a concrete floor. And, we are OK with the mottled, imperfect look of natural, unstained concrete.

Grinding the Concrete

In the process, we learned a lot about re-finishing old, abused concrete. About 1/16 inch of the concrete had to be ground away to get down to a clean surface. Let’s just say it was nice to have this job behind us. Read that gritty story in DIY Concrete Re-finishing.

Patching the Concrete

When carpet is pulled up from a concrete floor, the nails leave ugly gouges. It would be unacceptable to leave these, so they had to be patched. We experimented with some patch solutions:

Glue & Concrete Dust - When we ground the concrete, it created a powder. We saved a bucket of concrete powder and tried mixing this with Tight Bond construction glue, for a homemade hole filler. However, the glue shrunk back, and left a dip. And it did not give a hard concrete surface. So, overall it did not work.

Rockite Cement: This was purchased from True Value Hardware. We mixed this stuff with concrete dust to get a better color match.

Jim’s Concrete Patch Recipe:

6 spoons of Rockite
3 spoons of concrete power (saved from the grinding process)
Water to make a thick paste (about 1-2 spoons)
Mix thoroughly in a plastic bucket. Make up about 2 cups at a time. It sets very quickly, so don’t make a lot. In 15 minutes it will be hard. Fill the holes using a small spatula. It tends to get on the floor around it.
Let it dry overnight. Then sand the excess that is on the floor around the patch.

Thanks for sharing our Chelsea Moor Makeover!

Roselind Hejl
http://www.weloveaustin.com/

Chelsea Moor Makeover: DIY Concrete Refinishing

2011-06-18T16:21:00.004-05:00

We have used concrete as a finish floor on new construction before (see links at bottom), but these past experiences had not prepared us for refinishing old concrete. Here we encountered mud and dust combined with true grit.

At Chelsea Moor we had several concrete floors. Most of the house was poured in 1978. There was an addition, ten to twenty years later. And, there was the concrete we had just poured in the living area to raise the floor level.


Old Paint and Glue
The old 1978 floor had a lot of paint on it from the original construction. In those days no one considered concrete as a finish floor, so they had no reservation about spraying the floor along with the baseboards.
The kitchen and bath floors were coated with glue and backing from old sheet vinyl. And, in the sun room, there was a tough layer of glue left from the outdoor carpet.

We wanted to clean the floor and unify the several concrete vintages by grinding off the top layer of concrete. What to do and how to do it has been a process of discovery. We had to search the internet; call rental places; and bother people to figure out how to get this done.

Hex Pins and Sander
We hoped to make do with our own machine - a Clarke Floor Maintainer, purchased from Home Depot for about $270. They sell their rental machines when they are ready to replace them. This machine can be used for waxing concrete, which we have done several times in the past.

This machine can also take a hex-pin attachment from Pearl Abrasives, which was supposed to take off the paint and glue. We rented the hex pin attachment from Home Depot. The hex pin attachment took off some of the surface paint, but would not remove the deeper paint that had penetrated the surface of the concrete. It made a lot of dust. Strike one.

The guy at Home Depot loaned us a sander attachment, and we bought a couple of sand paper disks. The sander did about the same job as the hex pin. We tried putting water on the floor to reduce dust, but the sanding disk quickly became coated with gunk and would not work. Strike two.

Stone Grinder
Several rental places recommended a stone grinder. This is an Edco machine, which we rented for about $300 for a week. It weighs a ton. You rent the machine, but buy the stones. We bought a set of each stone texture – course, medium, and fine.

When water was put on the floor to reduce the dust, the stones clogged up with gunk and would not work. They had to be taken off and cleaned. Fortunately, we found that if you put down a lot of water it kept the concrete slurry thin, and the stones did not gunk up.   (So back in business.) We used a floor squeegee (from Home Depot) to pull the slurry into a pile, and a wet vacuum to clean it up.

The machine cleaned the floor, but was not sharp enough to hone off as much of the concrete surface as we wanted. We were not satisfied with the result. So, strike three, sort of.

Diamond Grinder
We went back to Home Depot and bought a diamond disk for a hand grinder that we happened to have. Baldo and David took turns going over the floor with this.

The diamond blade was a more aggressive tool than the stones. It took off a thin layer of concrete. We did the whole 2,200 square feet with a small hand grinder. The blade had to be replaced at one point. Then the hand grinder burned up and had to be replaced. (We could not find a place to rent a large diamond grinder, but would somehow manage to do this next time.)

Diamond Grinder + Stone Grinder
After a pass with the diamond grander, we followed behind with the stone grinder to smooth the surface and take out swirl marks.

The mud slurry from the grinding had to be vacuumed with a wet vac. This was a hard job in itself. Even with water on the floor, a layer of dust coated everything – even the walls and ceiling.

Final Result
The grinding and cleaning took about 9 days all total. We liked the final result. It is clean and speckled with some of the sand and pebbles. The color ranges from grey to tan color. This is a rustic surface with mottled color, a few cracks, and some patches where nails had been pulled. But concrete is easy to care for, modern, and lives well. And, it was there for the taking.

Concrete Experiences – Round One
Concrete Experiences – Round Two
Concrete Experiences – Keeping Cracks in Line

Thanks for sharing our Chelsea Moor Makeover!

Roselind Hejl
http://www.weloveaustin.com/

On the Trail of the Madrones

2011-06-12T16:37:00.001-05:00

Texas Madrone is a rare tree with beautiful bark color found on limestone hillsides. Central Texas is on the east edge of their habitat, so they are rare in the Austin area. The Madrone is not sold by nurseries because it is difficult to propagate and does not transplant well.

Let me know if you see a Madrone, or know more about this beautiful tree. I would like to develop a trail of Madrones, for others to follow and enjoy.

Stout, crooked branches spread to form a distinct crown. It is a small understory tree, about 20-30 feet. Petticoat Lane in Westlake Hills – (Near the end of Petticoat Lane on the left. June, 2011)

The purple outer bark exfoliates to reveal a smooth inner bark, with colors from cream to cinnamon.

This Madrone is growing on a limestone hillside among Junipers, Oaks, and native trees and grass.
Let me know if you see a Madrone, and I will add it to this page. Thanks!
Roselind Hejl
www.weloveaustin.com

Chelsea Moor Makeover: I Turned My Camera On

2011-06-08T16:34:00.003-05:00

(Guest post from Marie Hejl - http://cocinamarie.wordpress.com/ )

And that’s pretty much all I did on this phase of the project. As you’ll see from the pictures, my dad, my husband, and our trusty contractors deserve all the credit for the next phase in our home remodeling process.
When John and I bought the house, the living room had wood paneling on the walls, carpet on the floor, and thick wood beams on the ceiling. Here is a picture of the room in its original form.

For reference, the breakfast room and kitchen are located on the right side of the picture above. The picture below provides another view of the breakfast and kitchen area from the living room.

There were a number of issues that we wanted to correct in this space. In addition to removing the paneling and carpet, raising the sunken floor, and re-doing the fireplace (see previous post), we wanted to connect the living, dining, and kitchen areas in a way that would be suitable for large family gatherings, dinner parties with friends, as well as occasional cooking classes (and possibly another cooking show!).
With those goals in mind, the first step was to remove the paneling and carpet, along with the beams on the ceiling, and the half-wall (and lovely spindles) between the living room and breakfast area.

Then we had to deal with the back wall, which contained an off-center window, some awkward wall space, and a door leading to a sunroom. For us, the sunroom would have been wasted space. We decided to make the sunroom into our dining room, and we wanted this new dining room to connect to both the living room and kitchen. To achieve this connection, we removed the door to the sunroom and part of the adjacent wall, thus, broadening the opening between all three of the spaces.

Next up? The window. The original placement of this window truly did not do the house any favors.

The window looked out to an inaccessible and poorly maintained outdoor space—crammed between the walls of the dining room (on the left) and the master bedroom (on the right). In removing the window, our goal was to allow this outdoor space to serve as a connection—rather than an obstruction—to the backyard.

And it looks better already! The living room now opens to a partially-shaded area (soon to be a rustic limestone patio), providing a seamless connection to lush green grass and mature oak trees.

Here is the view from the inside. We had to use some temporary supports before the actual framing (hence, the two-by-fours from ceiling to floor).

Here, the framing is complete. Then it was time to bring in the sliding glass door. Although we considered using double French doors, we decided that a large sliding glass door would be a better fit (more modern, less colonial) for our personal style and the intrinsic structure of the house.

As it turned out, the sliding glass door was indeed very large, and very, very heavy—weighing nearly 300 pounds! It took four strapping young (er, middle-aged) men to move it from the truck to the back of the house. Not an easy job.

Once they got it this far, my dad realized that we did not have enough of the glue that we needed to secure the door to the concrete. So John ran to Lowe’s to pick up the supplies. And my dad (wisely) took that extra time to re-read the instructions for the installation of the door.

Now, they’re back at it.

Finally, the door is in place.

After a making a few final adjustments, the installation is officially complete.

Here is a view from the inside. It is just what we wanted! Open, connected, and appropriately modern.

Thanks for sharing our Chelsea Moor Makeover!

Roselind Hejl
http://www.weloveaustin.com/

Chelsea Moor Makeover: Sunken Living is Weak Link

2011-05-30T21:08:00.002-05:00

Like many homes built in the 1970’s, a step down into the living area was an established design feature. This is not the sunken living room, aka conversation pit, that was popular in the 1960’s. This is a small change in floor level that signals a transition in the space. As plans became more open, floors, instead of walls, defined rooms.

As you can see, the entry steps down from tile to plush carpet in the living. Level changes were used to clarify spaces. But, was this a good idea?
Not in this case. The problem here is that the traffic pattern to other main rooms is down the side of the living room. People have to watch their step, and fear of falling is not good design.

The plush carpet came up the wall a bit (ugh!) to cover the step ledge, as you can see from the glue. This is the step up into the kitchen.

So we decided to pour a concrete layer to level up the floor. To prepare for this, we took out the old entry tile, plush carpet, fireplace hearth, plus the cabinet and stone wall. Here’s how it looked during demolition.

Here is the space with the new concrete floor, poured over the entry and living room. Now all spaces are on one level. The dropped living room was a weak link in the chain of spaces.   Now the spaces flow together, and we have a stronger plan.

We used Roberto Trejo – 923-8164. He specializes in small jobs. We were very happy with his work. He brought in the concrete by wheel barrow. They installed a grid of #3 rebar, 16″ on center, across the floor. Plus they doweled into the existing slab around the perimiter with short pieces of rebar. The surface was hand troweled to a very smooth finish.

More on the concrete floor finishing process later…

Thanks for sharing our Chelsea Moor Makeover!

Roselind Hejl
http://www.weloveaustin.com/

Chelsea Moor Makeover: Sun Room Converts to Dining Room

2011-05-22T19:50:00.002-05:00

At some point in the life of Chelsea Moor, an addition was made. This may have been called the Sun Room, since it is nearly all windows. The windows bring in beautiful eastern sunlight.

The addition was built onto the back of the house in an ill considered way. It sits in the middle of the outdoor space where the patio was located.

We will have to make good use of the outdoor space that was left between the addition and the house. It is now an unused area with a sickly shrub. Those pink concrete pavers served as a sad patio.

The Sun Room was isolated from the main house. It was entered through the glass door at the end of the living room. Since the living room was “sunken” there was an unexpected step-up when the door was opened. If you had not already stumbled off the step-down into the living room, you definitely will trip here.

Here is the view from inside the Sunroom. The exterior stone wall and the window into the kitchen make it clear that this room is not a true part of the house. To complete the added-on look, there is a window AC, gas heater, outdoor carpet, and wall paneling.

In our plan, the Sun Room is going to be the new Dining room. We wanted to make this space a real part of the house – visually connected and fully used everyday.

To accomplish that, we needed to break down the wall. Thanks to Craigs List, both the window and stone found new owners.

With the entrance to the new dining room opened up, the living, kitchen, and dining spaces now flow together.

The new dining room is filled with natural light and will be a wonderful place to eat everyday.

Thanks for sharing our Chelsea Moor Makeover project!
Roselind Hejl
http://www.weloveaustin.com/

http://austintexashomes.wordpress.com/category/remodeling-for-better-value/chelsea-moor-makeover/

Chelsea Makeover – Re-dressing the Ceiling

2011-05-15T15:20:00.003-05:00

Chelsea Moor was built in 1979, and except for a room addition, not many changes have been made. So, as you would expect, the popcorn ceiling is intact.

Popcorn ceilings (aka, acoustic, cottage cheese) allowed builders to get by with just tape on the sheetrock joints. They were able to omit a lot of overhead work, such as floating and sanding the joints; spraying texture; and painting.   Polystyrene beads (tiny packing peanuts) is the secret ingredient that makes the mixture bumpy.   In older houses, asbestos may also be a secret ingredient – so it is best to have it checked before messing with it.

Over time , the popcorn just gathers dust and sits passively aggressive on the ceiling.   White is the only color the stuff can be. Colors have been tried – and they’re scary.

We wanted a modern simplicity and lightness in the house – with the walls and ceilings of the same material and color.

So, again resorting to Craigs List, we found Cliff Tibbs, a knowledgeable acoustic remover. He offered a package deal: He removed the popcorn and floated the joints. Then he sprayed on a coat of sealer; then light orange peel texture; then a coat of paint.   We were very pleased.

The workmen were able to scrape off the acoustic/popcorn layer after wetting it with a water sprayer. It fell off easily, but made a big mess that had to be cleaned up.

The tape joints and nails have to be hand floated.   Ahh, a smooth ceiling.

The old sheetrock under the popcorn is often darkened, as you can see here. Dark spots may bleed through a coat of paint. So, a coast of sealer was sprayed on before the paint.

Oh, another thing: There were four cedar beams tacked on the ceiling. Rough cedar was a very popular feature in the 1970’s. It added a hint of rustic lodge feel to the inside.   We took the beams down and they have been given honest work as borders for the vegetable garden.

Thanks for sharing our Chelsea Moor Makeover project with us!

Roselind Hejl
http://www.weloveaustin.com/

Chelsea Moor Makeover: People Who Need People

2011-05-08T11:18:00.003-05:00

People who need people use Craigs List! With Craig's, we have been able to recycle materials that would have gone to the dump. It has made the project greener and cheaper.

For example, as you can see from this photo, we had an overdose of fencing on this property. In the old days it would have been a huge job to dig up 230’ of chain link and haul it to the landfill. But, a simple Craigs List ad brought up a dozen people who were willing to help us out.

A sweet family in Elgin, needing chain link for their land, came over and removed all the metal posts and fence material.

We had plenty of good carpet to give away.

A young man took it to soundproof his music studio.

The stove, cabinets, fans, windows, paneling, blinds, sinks, and faucets all found new homes, thanks to Craig.

Here’s the living room paneling coming out. Lucky break - there was sheetrock underneath.

Here is the kitchen going…

Going…

Gone…

Thanks for sharing this project with me!
Roselind
http://www.weloveaustin.com/

Chelsea Moor Makeover – Opening the Entry

2011-04-24T11:23:00.004-05:00

Chelsea Moor Drive is a shady street in Balcones Oaks – an older neighborhood of 1970’s vintage homes, near Jollyville Road in NW Austin.

Marie and John, our daughter and son in law, just bought a house on Chelsea Moor, built by Lyndon Crider 32 years ago. Here they are with the keys just after closing.

The house has a lovely lot and good basic floor plan. But not much has been done to the place over the years, and there are some design changes we want to make. I’d like to share our makeover of this home with you as we move through it. Let’s start with the entry.

The entry has a major problem. The original design concept was to create a modern foyer space defined by the rough textured wall. Rusticity was in style at the time. However, not enough depth was allowed for the entry. You can barely open the door without bumping into the wall. You feel crowded and blocked when you come in. The simplest solution was to take a sledge to it.

Here’s the other side. It’s the fireplace with a cabinet and acres of stone hearth. You would have to climb up on the hearth to get a book down. Didn’t anyone think that was a bit odd? Notice the rough cedar mantle and contraption that blows extra heat out of the fireplace – part of the 70’s sensibility.

Here is the cabinet coming out. Wow, it’s a nice Ash wood piece that will be reused in the Study. The stone wall in the entry is now gone - adding about 9 inches to the space. We found that the stone around the chimney on the roof sits on the cinder block, not on the interior stone. The interior stone stoped at the sheetrock. So that was a lucky break. We decided to take the stone completely off the fireplace. Without the back wall of stone the rest of the facade was not secure. Our valuable helpers are Baldo and David. They do everything.

Here’s a sense of the space opened up. Light flooded into the living room. The fireplace now has a strong presence. Later the front doors will be glass, so the fireplace will serve as a screen for the interior. The original idea to use the fireplace as a screen wall was good – but it had gone too far. Less is more.

Will update more later….

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

Kitchen Cabinets – Room for Improvement

2011-03-06T20:06:00.007-06:00

When planning a kitchen remodel, often the center of attention is the finishes. Which countertop to use? Should you paint or stain? Is stainless still in?   Before you pick colors and finishes, don’t miss the chance to improve your kitchen in a fundamental way. Here are some simple ideas.

Traditional Drawer-Over-Door Style
For decades, the standard pattern for kitchen cabinets has been “one shallow drawer over one cabinet door.” The impracticality of this design makes its continued use really astonishing. Yet, we still see it today at all price levels. Typically, the door opens to a 24” deep box divided in half with one shelf. This box offers a poorly accessible volume of storage space. The front half of the space is readily available, but the rear part is dark and difficult. Items in the back are seldom used and often forgotten.

Expensive cabinetry may contain some pull-out shelves. These are very shallow drawers behind the cabinet doors. They help to make the full capacity of the space useful, but the doors must be fully open before they can be pulled out. Pull-out shelves improve on the poor initial design, but are not a great solution.
Because this drawer-over-door style is so fully ingrained in the culture of kitchen design, we typically see the sink cabinet with a false drawer or panel above two short doors. Sometimes the panel is hinged and can be pulled back to create an awkward little v-shaped box for storage of sponges and scrubbers. This quickly gets icky and water stained.

Tall Doors with Banks of Drawers

A simple modification would be to remove the false drawers from the sink cabinet and make the door full height. This modification makes the space under the sink much more accessible. Under-sink space is typically devoted to trash, recycling, and cleaning supplies. We sometimes see new cabinet designs that offer a tall trash drawer for waste containers. However, these pull out trash bins interfere with easy movement in the often congested sink area. The simple modification to full height doors in the sink area makes trash receptacles under the sink more accessible. They can be used, and then hidden from view behind the doors.

Continuing the concept of full height doors, you will find that they can be used to make all the base cabinets more accessible. You can then organize drawers into vertical banks of three or four drawers, depending on the desired depth.

The drawer-over-door arrangement began in a time when drawers were built without supporting hardware. Drawers would fall forward when opened. They had to be small to avoid making them too heavy.
Cabinet hardware today makes deep, wide drawers possible and practical. Banks of drawers take maximum advantage of the storage capacity of a typical 3’ high and 2’ deep base cabinet. They are a joy to have in the kitchen. Your stuff stays naturally organized, and is easy to store and find.

Wall of Shallow Cabinets

If possible, incorporate some shallow base cabinets of 12” to 15” deep. These tall cupboards are an ideal complement to the banks of deep drawers. They offer shelf storage that is well suited for appliances and heavy items. You won’t have to get down on hands and knees to dig out the blender. Everything is right up front in easy reach.

Open Shelves

Open shelves on both upper and base cabinets have become very popular. Young homeowners are doing away with doors altogether, and re-defining what can be visible. Even if your style is more traditional, some open shelves will add interest and some nice display space to your kitchen.
A good kitchen must start with the basics – a good arrangement of work spaces, storage, lighting, and appliances. An integral part of this is well designed cabinetry with spaces that are accessible and practical. If your cabinets have room for improvement, don’t miss the opportunity when designing or remodeling your kitchen.

If you have a real estate question, please feel free to call or email.

A big thank-you to all of you who have sent us friends and associates who need to buy or sell houses! Keep sending!

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Austin Real Estate 2010 – A Year in Review

2011-01-31T17:09:00.003-06:00

The collapse of the subprime bubble in 2007 began a chain of events something like this:

Sudden loss of loan funds = fewer buyers = unsold homes on the market = price reductions = loss of equity = foreclosures = more loss of value = fear of even more loss of value = buyer hesitation.
This is a difficult chain to break. But, I think the chain was broken here in Austin, and the tipping point was late 2009.

Price Appreciation:

In 2010 we saw a gradual reduction of housing supply. This was fueled by newcomers moving into the city; investors buying foreclosures; incentives for first time homebuyers; and low interest rates. With the market in balance, prices stabilized. Here is the sale price trend for single family homes:

2010           $253,151    Up 4%
2009           $242,690    Down 2%
2008           $247,767    Down 1%
2007           $250,436    Up 6%
2006           $235,738    Up 10%
2005           $214,946    Up 6%

Number of sales in the Austin area:

In 2007, the sudden loss of funding for loans greatly reduced the number of homebuyers. This brought the number of transactions down to a new normal. Often the newspaper reports that fewer transactions are happening - therefore prices will fall. This is not necessarily so. The market will re-balance. Sellers and home builders control the market by reducing the number of homes available. Right now the builder inventory is at 1993 levels! Lot development has also been very slow in recent years. So, in the near future we may reach a point of real shortage of new home inventory. Here is the trend for number of sales in Austin area:

2010           17,905        Down 5%
2009           19,005        Down 6%
2008           20,199        Down 20%
2007           25,245        Down 7%
2006           26,958        Up 10%
2005           24,539        Up 18%

Months Inventory for Single Family:

“Months of inventory on the market” reveals the balance point between supply and demand. It is the number of months that it would take to sell ALL homes on the market, using the sales rate over the past 12 months. This metric is best looked at in small geographic areas because there can be a lot of variation. Here is a look at the Austin market:

Months of Inventory by Areas

The big picture is this: At the end of 2010, the overall Austin market remained balanced, with 5.1 months of inventory. At year end, 10 sections had seller’s markets; 9 had buyer’s markets; and 27 had balanced markets.

Foreclosures:

The number of foreclosures rose during the 4th quarter – to 7.8% of listings. This is a relatively low percentage - some cities have dealt with up to 46%. Foreclosures are the residual of market issues. The bursting of the subprime bubble in 2007 generated the conditions for foreclosures. From time of default, they take about a year to come on the market for sale. They must come through the pipeline. Clearing the market of foreclosures is a pre-condition for recovery. When that pipeline is clear, our market will rebound – and it will rebound fast. I saw this happen in 1989 when Austin was hurt badly by the savings and loan crisis. Here is the trend on foreclosures:

2009
Q1 - 3.7%
Q2 - 3.6%
Q3 - 3.1%
Q4 - 4.6%
2010
Q1 - 3.3%
Q2 - 3.9%
Q3 - 5.0%
Q4 - 7.8%

Upper Price Range:

Upper end inventory has been the slowest part of our market to balance out, although we now see some tightening in central areas. Here is the trend on homes over $800,000:

                   4th Q 2009             4th Q 2010
                   Months Supply       Months Supply
Area 1B       14.4                      7.5
Area 8E       10.5                      9.9
Area 8W      15.8                     14.7
Area RN       17.1                     17.9
Area W        12.6                     13.3
Area LN       42.9                     31.4
Area LS       25.0                     21.9

Looking Forward to 2011:

With prices down, new buyers and move up buyers are in a great position. We also see investors coming into the market. Not just professionals, but everyday people. They are planning for long term appreciation; hedging against inflation; and locking in these great rates. Austin is a perfect place for home ownership for the long term. Here’s the reason why:

“For sheer economic promise, no place beats Texas. Though the Lone Star State’s growth slowed during the recession, it didn’t suffer nearly as dramatically as the rest of the country. Businesses have been flocking to Texas for a generation, and that trend is unlikely to slow soon.” (Newsweek - Joel Kotkin, 11/8/10) (Also see my interview with Joel Kotkin.)

If you have a real estate question, please feel free to call or email.

A big thank-you to all of you who have sent us friends and associates who need to buy or sell houses! Keep sending!

Join me on Linkedin and Facebook

Austin Market 3rd Quarter 2010 - Back in Real Time

2010-11-14T10:11:00.003-06:00

Through the housing downturn that began in 2007, Austin has maintained a balanced inventory overall. This is still true today, with 6.2 months of inventory for sale. In 2009, we were at 6.9 months at end of 3^rd quarter. So, no harm, no foul.

But, have housing prices hit bottom yet? Probably, but I think we will coast for awhile. Earlier this year, government tax credits for homebuyers propelled people into the market. Sales, mostly to first time homebuyers, sped up. But, we are back in real time now. And real-time data tells us that demand has slowed.

What’s Happening on the Ground:
Here’s how the market sections look this quarter:

3rd Quarter, 2010, Market Report

1 section had less than 4 months of inventory: Seller’s market.
28 sections had 4 – 6 months of inventory: Balanced markets.
17 sections had over 7 months of inventory: Buyer’s markets.

Foreclosures:
Foreclosures spiked up a bit during the 3^rd Quarter – to 5%. We have been seeing from 3.5% to 4.5% over the past couple of years. Foreclosures are a very good metric to watch. They are the litmus test for the local housing market. You can forget about the economy, employment, interest rates, availability of loans, and everything else – and just look at foreclosure levels. When they go down, everything else has gone up. They are the other side of the coin.

Upper Price Range:
Over the last couple of years upper end homes have been oversupplied. But, with limited spec building, inventory has fallen in most areas. Here is a year over year comparison of supply over $800,000:

                   3^rd Q 2009             3^rd Q 2010
                   Months Supply       Months Supply
Area 1B       27.2                      10.65
Area 8E       17.8                      14.96
Area 8W      24.6                      16.6
Area RN       20.9                      24.95
Area W        20.7                      12.4
Area LN        56.6                      32.25
Area LS        41.1                      26.70

Conclusion:
The housing market throughout the country is still beset with a backlog of mortgages that are slowly being foreclosed. Some of these are in Austin – and foreclosures have now come up to 5% of listings. Foreclosures add distressed property to the inventory and keep prices from trending up.

However, remember that the Austin market did not have a big price bubble, as occurred in many other cities. That is why it has remained stable, and continues to maintain a balanced level of inventory. New home supply has fallen substantially – from 16,000 building permits in 2006 to 6,500 in 2009. And, we can now see some reduction in the toughest nut to crack – the upper end inventory. That is very encouraging.
With demand now at real market-driven levels (without government incentives), we continue to have great opportunities for buyers. Interest rates are still the best in a lifetime. Successful homeowners in the old days bought for the long term. They locked in payments for 30 years, while values rose. When inflation came, their property served as a hedge against loss in money value. Austin is a perfect place for home ownership for the long term. Here’s why:

“For sheer economic promise, no place beats Texas. Though the Lone Star State’s growth slowed during the recession, it didn’t suffer nearly as dramatically as the rest of the country. Businesses have been flocking to Texas for a generation, and that trend is unlikely to slow soon.” (Newsweek - Joel Kotkin, 11/8/10) (Also see my interview with Joel Kotkin.)

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

If you have a real estate question, please feel free to call or email.

A big thank-you to all of you who have sent us friends and associates who need to buy or sell houses! Keep sending!

Join me on Linkedin and Facebook

Next Stop for the Granger Depot

2010-10-01T12:22:00.002-05:00

Roselind:
Francois Levy, an Austin architect, and his wife, Julie, a community building specialist, were driving through Granger and noticed an old train depot, abandoned and falling into disrepair. The old structure, originally built in 1904, is now their home.

Thank you, Francois, for sharing the story of how the Granger Depot found its place as your family home . How did you happen to find the building?

Francois:
Julie and I had decided that we would find a cool old building to move and rehabilitate for our home, but hadn't found the right building. I was hoping for something long and thin, perhaps a schoolhouse or a church. I felt a space like that would be a great opportunity for an open plan, a marriage of historic construction and more modern spatial organization. Long narrow spaces would also inherently have better natural light and ventilation, since a single long room would be exposed to several orientations.

Julie had by that time created a few urban-infill, affordable house projects, and she was looking for an old house to move onto a lot. I had been in Dallas visiting family, and Julie took the train to join us. The Amtrak takes a different route than IH-35, and it has an observation car as well. It's a window into small-town Texas life of a vanishing era. From the train Julie saw some interesting housing stock, much of it abandoned.

On our drive back to Austin, we retraced her route, and looked at some potential houses. In Granger, I noticed the train depot sitting a block or two from the track, and we went to check it out.

It had obviously been moved and was mothballed. I thought we should ask the town about it. At first, they weren't interested in selling it, but a few months later they told us they had decided it wasn't feasible for them to use it, and we eventually acquired it.

At the same time, we stumbled upon a lot in the Guadalupe neighborhood, which is Julie's parish. There was a long and convoluted process, but eventually the lot and the building came together.

Roselind:
What a great story, Francois. The idea of adapting an old building for residential use has much appeal. I imagine that there was a lot of perseverance between noticing an abandoned train depot and moving into your new home. Just obtaining the building seems difficult, not to mention moving it. What was the hardest part of the process? Any surprises?

Francois:
Well, an unorthodox project like this can present some financial challenges. We also had a couple of early setbacks. Since the lot was sloped, we had decided to excavate a half-basement under most of the building, since the east end would end up 6 feet out of grade anyway. That was no problem, but when we excavated for the footings within the basement, we hit a small natural spring (and some soft clay) in a small area of the basement. I ended up redesigning the foundation, having far fewer footings and spanning the increased spacing with new steel beams.

Also, we had hoped to salvage most of the roof framing after the move and reconstruct it in place. Unfortunately, it didn't turn out that way, so we had a lot more new framing to deal with than we had anticipated. In the end, both those setbacks had silver linings. We were able to get a much more useable basement, and a bit more volume in the attic.

Also, Julie especially had a real desire to use as much salvaged material as possible. Part of that was economically motivated, but it was also a way for her as a non-architect to contribute to the design process. She'd find an old, narrow door, for example, and ask me, "Where can we use this?" I'd have to find a place for it.

Roselind:
I can see that you kept the original as intact as possible! Inside, the ceiling is much higher and the space more open than you expect. Perhaps this is because it was a commercial building. As a house, old and new come together perfectly. From looking at your photos, it is clear that this was no small job. But, what a satisfying project to have as a part of your and Julie’s life together. I imagine that when you saw the old Granger station, you both said, “Without a doubt, this is the one.”

Thanks for sharing it with us!

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

Austin 2nd Quarter - An Opportunity Market

2010-08-19T15:55:00.001-05:00

The Austin real estate market ended the 2nd quarter of 2010 with 6.9 months of single family homes for sale – a balanced market inventory. However, the state of the market varies by geographic area and price range. Here is a closer look at the 2^nd Quarter of 2010, area by area:

2nd Quarter, 2010, Market Report

Summary of 2^nd Quarter:
We ended the 2^nd Quarter with a rise in inventory compared to the 1^st Quarter, which had 5.9 months of supply. A review of the real estate sections in the Market Report above shows that there are now 20 “balanced” markets and 25 “buyers” markets throughout the Austin area. This is due in part to a seasonal rise in inventory. We normally see rising supply during the first half of the year, and waning supply later in the year.
It is due in part to some pent up inventory coming on the market. Many sellers held back during the past two years and are now coming on the market. However, demand for homes has not spiked to meet pent up supply. In fact, we see a lot of potential buyers who are leasing and waiting to buy. This is in spite of the best interest rates of a lifetime – under 5% - available today.

Foreclosures:
Foreclosures at the end of the 2^nd Quarter were at 3.9% - not a significant part of our overall market. However in a few sections foreclosures were as high as 10% of homes on the market.

Foreclosures in Austin area:
2009
1^st      3.7%
2^nd     3.6%
3^rd     3.1%
4^th     4.6%
2010
1^st      3.3%
2^nd     3.9%

Realty Trac shows this data on foreclosures for June, 2010:

Nevada: 1 in 87 homes
Florida: 1 in 170 homes
Arizona: 1 in 188 homes
California: 1 in 193 homes
Georgia: 1 in 334 homes
Texas: 1 in 788 homes
Travis County: 1 in 858 homes

Austin Experience:
Kiplinger named Austin as the best city for the next decade. Forbes named Austin as the best large city for job growth. Austin consistently tops the list in studies done by the Milken Institute, Forbes, Brookings Institute, New Geography, Kiplinger, and other economic trend spotters.
We are in a good place now because Austin did not experience an excessive run up in home prices from 2001 – 2006. The bursting of the dot.com bubble in 2001 kept home prices from expanding to dangerous levels in Austin. It slowed down price appreciation, and kept us out of trouble. Today we enjoy momentum from the truest of sources – job growth and people who want to move to Austin for new jobs.
This is the Austin story, and we are very fortunate to have this story widely broadcast around the world. A recovering job market in Austin will raise demand for houses, and this will soak up supply.

Opportunity Market:
We have seen great opportunity markets like this come and go. The combination of extra inventory and very low interest rates make this a prime time to buy a home or investment property.
Here is a recent example: One of our clients purchased a fixer upper in Hyde Park with their daughter. Because their daughter will occupy the house, a 3.5% down payment FHA loan was used. They made use of the FHA “fix up” program, which includes funds to repair and upgrade the house after closing. The result is that they got into an investment, helped their daughter, used an established loan program, and borrowed the funds at a fantastic rate.

Thanks for listening, and stay in the shade!

Roselind Hejl
http://www.weloveaustin.com/

Austin Appreciation: The Middle Ground

2010-06-26T10:56:00.005-05:00

“Clowns to the left of me, Jokers to the right,
Here I am, stuck in the middle with you” (1973 Pop Hit)

This old song comes to mind when I think of Austin real estate values. We have been stuck in the middle for years. This has not always been the most coveted spot. But, a few months ago, Time Magazine held Austin up “as a model of hope.” We were hailed “as one of the first pockets of the country where people are getting back to work, showing that even in this dreary economic environment, job creation can happen — and illustrating how it will eventually take root around the nation.”

Then Kiplinger Finance Magazine evaluated U.S. cities for growth and growth potential. Austin topped their list, and they concluded that “Austin is arguably the country's best crucible for small business.” Perception and reality are coming together in Austin. An entrepreneurial environment, combined with a fun life style, is bringing people here to live and work. These folks need to buy homes. Sustained demand by buyers will absorb housing supply and create appreciation. Price appreciation is really just a gauge of demand against supply.

I thought it would be interesting to look at price appreciation in Austin over the past ten years, and see what history tells us. A good source for this is the FHFA site - the agency that regulates Fannie Mae and Freddie Mac. They have access to lots of data on appraisals for sales and re-finances. And, they track the repeat sales of the same home over time. So they have good data.

2000 – 2004
The year 2000 was a peak year for Austin, with an annual appreciation rate of about 12.50%. But, just after that, disaster struck, and we were humbled by the dot.com bust. In 2001 the appreciation rate dropped to 9.44%; 2002 saw 1.54%; and we hit our low point in 2003 with -0.29%. We crept back up to 1.02% in 2004.

So, the five year rate from 2000 through 2004 was 4.5%. Compared to many other cities, this was just fair to middling. At the beginning of 2005, FHFA ranked Austin at 182 out of 265 markets for appreciation over the previous five years. In retrospect, the bursting of the dot.com bubble kept house prices from expanding to dangerous levels in Austin. It tamped down price appreciation, and kept us out of trouble.

2005 – 2009
The next five year period to look at is 2005 through 2009. The appreciation rate climbed to 4.90% in 2005; then to 8.19% in 2006; then to 9.34% in 2007. In mid 2007 the sub-prime bubble burst and a serious financial crisis ensued. Demand slowed almost to a halt, and the appreciation rate began to fall. In 2008 we had 4.81%; and in 2009 we had 0.01% appreciation.

During the 2005 to 2009 period our appreciation (demand rate) was artificially inflated by a wave of investment buyers from around the country. Their purpose in buying was only to sell soon at a higher price. Some had gone to seminars on investing in Austin, where they were advised to buy as many new starter homes as they could get their hands on. Of course we know that this all came to no good end. The point is that Austin was not immune to artificial price inflation. But, fortunately, this was stopped before we could get too far off the ground. Our high point in 2007 was 9.34%, while some places in the country had 30 -50% price increases in one year.

So, the five year rate from 2005 through 2009 was 4.75%. Today, compared with many other cities, fair to middling looks pretty good. At the beginning of 2010, FHFA ranked Austin as 7 out of 301 markets for appreciation during the previous five years.

Moving Forward
The real estate market lags the economy by a year or two. So appreciation in Austin will probably stay flat for another year. But that’s old news. It is clear that Austin job growth combined with low interest rates will propel the demand side. And, people will look to home ownership as a hedge against inflation, which is likely to happen. On the supply side, lot development has fallen behind, so new inventory will not be as readily available as it has been. So, over the next five years appreciation will gain momentum in Austin. It will be real appreciation, based on demand from people who live here and can meet mortgage requirements. That should keep our market where it should be - on middle ground.

Time Magazine Video

Kiplinger Video

U.S. Appreciation Graph

Austin Real Estate Market: 1st Quarter 2010

2010-05-27T16:26:00.000-05:00

The Austin real estate market ended the 1st quarter of 2010 with an overall supply level of 5.9 months. This is up from 4.6 months in the 4th quarter of 2009. Rising supply during the first part of the year is part of the normal real estate cycle. Homes enter the market in greater volume during first two quarters, and inventory whittles down during the year. The 1st Quarter of 2009 also had an overall 5.9 months of supply.

However, real estate markets have local variations. We may have frequent multiple offers in one area, and see slower movement in another area or price range. So we looked at the market closely, and checked median prices, foreclosures, and months of inventory for each section. Here’s the report:

1st Quarter, 2010, Market Report

Sellers Markets: 1 - 3 months of supply

There were 6 areas with seller’s markets in the 1st quarter of 2010, down from 13 areas in the last quarter of 2009. All of the seller's markets are in the close-in suburban parts of Austin – both on the south and north sides. These close-in suburban neighborhoods tend to have strong demand and tight inventory. Builders are limited to remodels or some infill construction, so inventory is not being created as fast as it is in areas that have lots available.

Balanced Markets: 4 - 6 months of supply

There were 23 areas with balanced markets - up from 22 in the last quarter of 2009. The balanced markets were distributed through the central neighborhoods, plus close-in-suburban and outer-suburban areas. There is some new construction in these areas – which increases the supply side. But, low cost mortgages and homebuyer credits tended to bring people into the market. Also, the concern that interest rates will rise helped to fuel the demand side, and will continue to do so in the coming months.

In the central Austin neighborhoods, inventories tend to be balanced, except in the upper end price range. For example, in the close-in part of Westake, there is only a 5.2 month supply of homes under $800,000, with a 14.8 month supply over $800,000.

Buyers Markets: 7 + months of supply

There were 17 buyers markets – up from 11 in the last quarter of 2009. Generally, these neighborhoods have more new home construction available - which increases supply. And, all sections with upper end homes continue to have higher inventory levels.

Upper End Market:

Areas with many homes above $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods have been popular locations for speculative building or remodeling.

Although most builders have slowed or stopped speculative high end building, the market is still working through the inventory. Tight lending requirements for jumbo mortgages have reduced demand in this segment of the market. And, the recent move-up buyer credit did not help because it was capped at $800,000.

The good news is that - compared with the 1st Quarter of 2009 - the upper end inventory in central areas has moved down. So we can see that 2010 begins with better numbers in the central neighborhoods - where inventory usually begins to tighten, before the trend spreads to suburban areas.

Foreclosures:

On average, foreclosures this quarter are 3.3% of listings on the market, which is not a significant part of our market. (2009: 1st Q - 3.7%; 2nd Q - 3.6%; 3rd Q – 3.1%; 4thQ – 4.6%) However, foreclosures in some outer-suburban areas may be 8% to 10% of their local market. These include the Manor, Elgin, Bastrop and some Southeast areas. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market. The good news is that these neighborhoods do not have very high inventory levels. This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Although we don’t have a serious problem in Austin, across the nation about 4 million homeowners are behind on their payments, and more foreclosures are predicted to come on the market. Foreclosures are the end of a long pipeline. When they stop, we will know that deeper problems have been solved.

Conclusion:

In 2006 we received numerous calls from investors who were disappointed to hear that we only expected about 4 – 6% appreciation. They told us that there were much better places to invest, where they could get 30% or more. We wished them well. Because our appreciation rate stayed at normal levels during the housing boom, Austin has not been as hurt by the housing and economic crisis over the past couple of years.

Time Magazine said this about Austin in their March, 2010, issue: “Austin is emerging as one of the first pockets of the country where people are getting back to work, showing that even in this dreary economic environment, job creation can happen — and illustrating how it will eventually take root around the nation. Some companies are expanding, and others — markers of the city's entrepreneurial spirit — are starting from scratch.” Here is Time’s video called: “Austin Shows How to Make New Jobs."

As Austin makes new jobs and moves into the future, it is a great time to take advantage of the best interest rates in a lifetime, and to own a home in this beautiful and successful city!

Roselind Hejl, CRS
Coldwell Banker United

www.weloveaustin.com

If you have a real estate question, please feel free to call or email.

A big thank-you to all of you who have sent us friends and associates who need to buy or sell houses! Keep sending!

Join me on Linkedin and Facebook

A Tie That Binds: 99 Year Real Estate Transfer Fee

2010-02-26T17:23:00.003-06:00

I showed a house recently and was made aware of a unique requirement – the 99 year transfer fee. So, what is this? Think of it as a tie that binds the house to the seller for a long time - a century, in fact. Here is how it works:

1) The seller places a special deed restriction on the property that says: Every time this property is sold during the next 99 years the seller will pay 1% of sales price to the person who created the deed restriction.

2) The restriction needs to be entered in the deed only one time, and will run with the land for 99 years.

3) The title company will exclude this payment requirement from their title insurance protection. This means that future buyers accept responsibility for paying the fee when they later sell the house.

There is a company – Freehold Licensing – that claims credit for this idea, and will receive part of the fee. When I became aware that this requirement was in the deed for a house, I had to call the agent for clarification. My reaction was, well, . . . disgust.

Can you imagine endorsing this idea and explaining to a buyer? “Mr. and Mrs. Buyer, here’s a little item you need to know. You will need to pay a 1% fee when you sell this house. Call it a transfer fee. But don’t worry. All you have to do is sell this to the next buyer, and you won’t have to deal with again. Let the next guy worry about it.”

Haven’t we leaned our lesson about this recently? Haven’t we seen the consequences of borrowing and leveraging against the future equity in houses? Now we have a new way to bet that real estate values will always go up. If market values stay level or go down, this provision might make the home extra hard to sell. Buyers could just move on to their next choice. Each buyer must agree to pay the 1% fee, plus assume the burden of convincing the next buyer to absorb the fee and sell the idea to the next buyer.

More consequences come to mind:

Could a covenant like this slip in unnoticed by a homebuyer? Most folks don’t go over deed restrictions with a magnifying glass.

Could this be passed along to an inexperienced buyer? Not everyone has a good grasp of what is customary.

Will future sellers be aware of the need to disclose this?

Are appraisers equipped to review deed restrictions and factor them into the market value?

Will objections to this by lenders arise at some time in the future?

Is this sustainable? A transfer fee ending this year would have been initiated before WW I, when Austin had mostly dirt roads. Ninety-nine years to pay, and pay, and pay a transfer fee is just a heck of a long time.

And, I wonder what would keep the next seller from adding his own private transfer fee to be paid for 99 years? And the next seller, and so on. It would not be long before all equity is drained out of the property. Greed can do that.

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

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Real Estate Websites: How to Turn Visitors Away

2010-02-17T20:23:00.011-06:00

This was an article that I wrote for fun in 2006 – sort of the Middle Ages of real estate websites. (Full disclosure: I’m not a computer wiz, and have not been able to turn on the TV since the advent of remotes. )

Here’s the article:

Have you surfed real estate sites lately? Many still make some fundamental mistakes that tend to drive visitors away, rather than offering a rich experience that people will return to. A visitor who has come back to your site several times is moving toward picking up the phone or sending an email, and beginning a business friendship with you.

The primary goal of a website should be to establish your message quickly and simply. Visitors scan sites rapidly, and want to move to information that benefits them. Here are some ways to stop them from doing just that!

1. Force visitors to sit through your flash introduction. (“It’s a bird, it’s a plane…no, it’s…the title to this website. If you need a "Skip Intro" button, you're off on the wrong foot.”)

2. Impress your visitors with some cool text on top of background graphics or on top of background text. (“Honey, where are my 3-D glasses?”)

3. Shake things up with a blast of your favorite music. (“It's midnight, and I think I'll do a little house hunting before bed…” ...In-a-gadda-da-vida-baby..)

4. What is this? Blue text over black background. (“I thought this was a website, not a cave. Honey, where’s my flashlight?”)

5. Come up with a spiffy new layout for each page. (“Let’s see, which site was this anyway?”)

6. OK, folks, let’s see how well you can find your way around! Notice we have dozens of links scattered around the page… (“Honey, get out the ball of string and bread crumbs.”)

7. Here are some fun link puzzles! You’ll find that some links duplicate other links, but with different names. Try to guess which! (“Oh-oh, I opened this one already…”)

8. Oh boy, it’s one of those ads that flash at lightning speed. (“May cause nausea, headaches, blurred vision...”)

9. If one font does not make your site interesting, try six or seven, plus some bold, and a SMATTERING OF ALL CAPS. (“A little subtlety, please!”)

10. Hmm, the middle of the page is moving, but the sides are just hanging there. This does not seem quite right... (“Children, don’t ask why, but a long time ago, people used a thing called “frames.”)

11. So, what’s the main course on this site? Well, tonight we’re having some canned content: Seven Deadly Mistakes Sellers Make. (“Who cooks up this stuff, anyway?”)

12. Excuse me, folks, this text is for Google! (“Repeat after me...home for sale, for sale home, sale home, home sale, for home, home for...”)

13. Have we got a ton of photos for you! Just sit back and relax. They may take a while to load. (“OK, this is us on our way home from Vegas…!”)

14. And speaking of me, there is sooo much more to say… (“And in 1982 I received several awards for...”)

15. And now you can read my new syndicated real estate blog! (“The other day I was chatting with an agent who sits in the cubicle next to me at the office about the use of open house signs…”)

16. I’m game! Let’s see how long can we make this page? (“OMG! It’s three feet long! Oh wait, there's more.”)

17. Cram your hundreds of reciprocal links on the main page. (“What is all this stuff at the bottom? Aah, helpful links. Car repair in Bulgaria?”)

18. OK, people, let’s cut to the chase: You either fill out this questionnaire, or nothing doing! (“Oh, well, I didn’t really need to be doing this right now.”)

19. Wait, don’t leave! Here’s some interesting real estate trivia! (“Why is the Terra Amata site famous?”)

20. Pop ups! (“Back button, please! I’m out of here.”)

21. Not so fast, folks! Welcome to Hotel California, where back buttons don't work! ("Relax,” said the night man, "we are programmed to receive. You can check out anytime you like... but you can never leave.")

Austin Texas Real Estate Guide

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Austin Home Design 2010

2010-02-09T19:09:00.002-06:00

Led by the green movement, modern design with clean lines and a good connection to the outdoors will be the strongest housing trend in Austin for 2010. Buyers today are well aware of housing design styles as they happen in real time. They watch home makeovers on television, receive décor catalogs in the mail, and browse through home magazines in line at the grocery store. They simply open their laptops to experience the latest, most creative ideas. Homebuyers today want their homes to express themselves and their interests.

Less Is More
The interest in green living, combined with the economic slowdown has led to a more efficient use of space in homes. Smaller homes with clean lines, open floor plan, and less stuff appeal today’s buyers. They are interested in livability, rather than showiness; personality, rather than pretention. Vaulted ceilings are out. Large media rooms and formal living rooms not connected to core areas are out. They are being re-invented as studies or home offices. A growing number of buyers work from home. Old garage apartments are finding new life as office space.

Hard Surface Floors
The green movement and modern design have both contributed to the use of hard surface floors. Carpets hold dust mites, dirt, and allergens. Bamboo, which grows a foot per day, is an attractive and sustainable choice. Other popular floors include concrete, stone, cork, natural linoleum, and rubber. Ceramic tile continues to be a good fit in baths and kitchens.

Mid Century Modern
Younger buyers are breathing new life into their grandparents’ mid-century modern homes. Geometric patterns and big flower prints from the 1950’s and 60’s are back in style. Vintage wallpaper on an accent wall is a great find. Marimekko, Danish modern, IKEA, Eames, and modern American furniture are a perfect fit with today’s styles. Sparse décor, hard surface floors, white walls, and extensive glass areas create a clean, simple look. Complexity is out, simplicity is in.

Eclectic Combinations
Traditional homes are being updated with sleek finishes, such as industrial light fixtures, flat cabinet doors, hard surface floors, and exposed windows. And, as the same time, modern style homes benefit from vintage or rustic touches. Open shelving in kitchens and baths are in. Stainless steel appliances are still a good fit. Bathrooms are smaller, but closets are still generous. Today’s flat screens fit in easily, and the trend is to have them in places like kitchens or baths. Modern design with a retro feel will be the leading edge in the next five years.

Move Over Granite
In the recent past, to upgrade a house was to “granitize” it. Today’s buyers want new choices. Recycled glass is a green inspired choice. Engineered stones, such as Cesarstone and Silestone, are growing in popularity. Soapstone, long used in labs, is in demand. The organic look of limestone, concrete, and marble have a following. Stainless steel is a good fit with modern styles.

Turquoise Is Back
Pantone, a color authority, has declared turquoise to be the color of the year for 2010.
Here is what’s out: Heavy faux; red and gold; thick wall texture. White and off whites are in. Pastels are in. Taupe and grey are combined with white for a sophisticated look. Deep colors such as turquoise, chocolate brown, and plum are used in moderation. A soft organic pallet, such as cream, sisal, and raw wool is in. On wood, both the natural bare look and dark stains are used.

Outside is In
Buyers today want more connection to the outdoors. This is expressed in several ways. Glass doors that open the whole room to a patio are exciting. Screened porches have made a big comeback. On small urban lots, large glass areas may open to a private courtyard. Backyard gardens, covered patios with outdoor kitchens, and pools are all favored by today’s buyers.

Austin Real Estate Market: 4th Quarter 2009

2010-01-25T16:49:00.004-06:00

The Austin real estate market continued on an even keel through the 4^th quarter of 2009, with an overall supply level of 4.6 months, down from 5.7 months in the 3^rd quarter. We normally see a drop in supply during the last few months of the year, so the market is behaving as expected. Here is a map showing the variations in the Austin market by area: 4th Quarter 2009 Market Report.

Sellers Markets: 1 - 3 months of supply
There were 13 areas with sellers’ markets in the 4^th quarter, up from 9 areas in the previous quarter. Most of the sellers’ markets were in central core neighborhoods and close-in suburban parts of Austin – both on the south and north sides.

The central core and close-in suburban neighborhoods of Austin have always had strong demand and tight inventory. Builders are limited to remodels or some infill construction, so inventory is not being created as fast as it is in areas that have lots available.

In central core neighborhoods, where upper end homes are available, we see two types of market side by side. For example, in the close-in part of Westake, there is only a 2.8 month supply of homes under $800,000, with a 10.5 month supply over $800,000.

Balanced Markets: 4 - 6 months of supply
There were 22 areas with balanced markets - up from 17 in the 3^rd quarter. The balanced markets were distributed through the central core, close-in suburban, and outer-suburban areas. There is new construction in these areas – which increases the supply side. But, readily available mortgages; first-time and move-up buyer tax credits; and low interest rate loans have fueled the demand side. So we saw many neighborhoods with balanced markets in the last quarter of the year.

Buyers Markets: 7 + months of supply
There were 11 buyers markets at the end of the 4^th quarter – down from 20 in the 3rd quarter. Generally, these neighborhoods have more new home construction available - which increases supply. And, all sections with upper end homes continue to have higher inventory levels.

Upper End Market:
Areas with homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods have been popular locations for speculative building or remodeling.
Although most builders have slowed or stopped speculative building in the high end, the supply has been slow to tighten. This is because jumbo mortgages are not as readily available. Also, buyers in this market are often unable to sell their home in another state, requiring them to rent when they arrive in Austin.
However, you can see from the chart below that upper end inventory dropped by almost 50% in the 4^th quarter. We went from an average of 30 months supply in 3^rd Quarter to 16 months in the 4^th Quarter.

Months of supply on the market for homes over $800,000:
                 1st Q       2ndQ       3rd Q       4^th Q
Area 1B    25.1         28.7         27.2        14.4
Area 8E    21.0          21.6         17.8       10.5
Area 8W   22.1         23.7          24.6      15.8
Area W     24.0         25.8          20.7      12.6
Area LN    34.0        40.4          56.6      42.9
Area LS     28.8        38.8          41.1      25.0
Area RN    18.6        20.2          20.9      17.1

Foreclosures:
On average, foreclosures are 4.6% of listings on the market, which is not a significant part of our market. (1st Q - 3.7%; 2nd Q - 3.6%; 3^rd Q – 3.1%) However, foreclosures in some outer-suburban areas may be up to 8% to 12% of their local market. These include the Manor, Elgin, Bastrop and some Southeast areas. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market.

The good news is that these neighborhoods do not have very high inventory levels. This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Conclusion:
Texas is out performing every other state in the country. This is clear from the graph below, showing appreciation rates during 2008 and 2009. Most parts of the country had their worse decline in 2008, followed by a further slump in 2009. Texas has stayed at par during these two difficult years. Austin is the crown jewel of Texas. It offers an entrepreneurial culture, employment opportunities, and a high quality of life.

Of course Austin has faced a depression, just as any other city. But, our real estate market has had less price depreciation than nearly any other city. Joel Kotkin, whose research appears on Forbes, ranks Austin as the best big city for jobs. He says, “Few places have received more accolades in recent years than Austin, the city that ranked first on our list of the best big cities for jobs.” Compared to similar “idea cities,” Austin has always been affordable. Forbes just listed Austin as #2 in Best Cities for Recovery.

For buyers in all price ranges it is time to take advantage of the best interest rates in a lifetime, plus the first-time and move-up buyer tax credits. It is a great time to own a piece of a great place to live - Austin!
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Most parts of the country had their worse decline in 2008, followed by a further slump in 2009.
Texas stayed at par during these difficult years.

This graph is from http://www.fhfa.gov/ - the agency that regulates Fannie Mae, Freddie Mac and other federal home loan banks. They keep data on housing appreciation across the country.

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

Green Home Trends for 2010

2010-01-15T15:52:00.004-06:00

Houses are central to the green movement. Buyers today are more aware of the consequences of their choices. When greener choices can be made, today’s buyers want to make them. They want to do the right thing – both for themselves and for the planet. Many of the design choices that we see coming in 2010 are grounded in the green movement.

Hard Surface Floors
Hard surface floors are a green design feature. Carpets hold dust, germs, mites and allergens. In the past, the smell of new carpet signaled a clean, updated house. Today, this smell signals chemicals used to make the glues, fibers, pesticides, and fire retardants in the material. There is serious concern about infants crawling on carpet before it has had time to cure. Concrete, stone, natural linoleum, cork, bamboo, and wood are favored floorings. Bamboo, which grows a foot per day, is a popular choice because it is safe and sustainable to produce.

Healthy Choices
Buyers today are more health conscious. Through the green movement, their construction knowledge is deeper and more technical. There is a generalized concern about asbestos fibers, adhesives, high VOC paint, pressboard glues, and off-gassing from carpet. Homebuyers today feel good about using locally made materials and recycled products. For example, insulation made from old blue jeans is a gaining popularity. It makes use of recycled materials, is sustainable, is safe to use in homes.

Alternative Energy
Energy that can be produced on the property is gaining ground. Homes that operate at net-zero energy are possible. As alternative energy sources become more cost effective they will be more widely used. Neighborhood associations are now facing questions about solar panels and wind turbines on roofs. We will see more of them in 2010. A popular recent trend has been the solar tube, an alternative to the skylight, to gather solar energy and reflect the light down a tube into the room.

Re-thinking Fireplaces
These have been a must since the 1980’s. However, today air pollution and the net heat loss from fireplaces have people re-thinking the fireplace. Many have been converted to gas log systems. An alternative is the “direct vent” fireplace, which functions as a gas heating appliance. In warmer climates buyers may opt out of fireplaces altogether. On the other hand, outdoor fireplaces and fire pits are trending in.

Lower Utility Bills
Today’s home buyers would like to reduce their carbon footprint and save on utility bills. They want their homes to be energy efficient. Low E Glass, R 38 insulation, high efficiency AC systems, passive solar orientation, solar panels, energy rated appliances, tank-less water heaters, and LED lighting are some of the basics that buyers expect to find, or are willing to upgrade to.

Down Sizing
The green construction trend, plus the current economic slowdown, has led naturally to a reduction in excess space in homes. Smaller homes, clean lines, and less clutter resonate with today’s buyers. Formal living rooms or media rooms that are unconnected to other core areas tend to not be used. They may be converted to studies or left off altogether. The open floor plan is a green choice. It allows conditioned air to flow easily, and it optimizes the effect of passive solar design.

Places to Walk
There is considerably more interest in walkability. Developers are re-thinking how neighborhoods are planned. People want to walk to parks, shops, and restaurants. They are concerned about our dependence on cars – unstable gasoline costs, environmental damage, and negative effects on personal heath. Garages are being left off in some urban areas in favor of carports or open parking. Home offices are expanding. Live-work lofts are a popular new design style. We are seeing this transfer to live-work spaces in homes.

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Design Tips for Better Dining Rooms

2010-01-02T18:18:00.001-06:00

Sitting down for a meal is a central function in the design of a home. The space for dining can range from a grand hall to a counter with stools in the kitchen. Dining spaces are as various as houses themselves.

Many homes have a separate formal dining room. Though used only occasionally, this area is often the most elegant and best furnished room in the house. It sets the design style of the house. There is something romantic about sitting down in a room especially devoted to the dining experience. Even the simplest food looks special on your best china in a formal dining room. It is a more private and serene place, separate from the work area and clutter in the kitchen.

Sometimes formal dining rooms develop a rigid, impractical look, more suited to viewing than eating. There are lots of creative ways to personalize a formal dining room to make the space feel safe and comfortable. Consider using a formal table with mix and match chairs, modern placemats, bright colors, assorted candle holders, and lamp lighting. The trend is away from having carpet in dining areas – giving the room a stuffy, impractical feel. Hard surface flooring is more inviting and can take the spills that inevitably happen.

In addition to the formal dining, there is usually a breakfast nook or a central counter for everyday meals. Although the formal dining is separate from the kitchen, it should be easily accessed from the kitchen. The passage to the dining may contain a butler’s pantry - cabinets for serving dishes or glassware.

A less formal alternative is to have the main common areas – kitchen, dining and living – all combined into one large space. Guests feel close to the core of the home, and can participate in cooking or mill around the living and dining area. This is a fun, open style that draws people together to cook, eat, and visit. A successful sequence is to have the spaces move from the most protected to the most outdoor – from the kitchen, to dining, to living, to porch.

Regardless of its location, the dining area should have enough space for a good sized table and at least one additional piece of furniture. Dining areas need natural light from windows or doors. Natural light makes food more appetizing. Dimmers to soften interior lighting at night are a good idea.

The dining area is a core space in the house – a place for the important activity of dining and entertaining. How this space is configured, either as a separate room or a part of the living area, depends on the style of your home, degree of formality, and your personal preference.

Austin Texas Real Estate

How to De-clutter: A 12 Step Program

2009-12-26T16:35:00.002-06:00

De-cluttering your home is one of those needs that tends to move down the to-do list, below more pressing items. It can be put off for years. Meanwhile you don’t feel relaxed in your home, or enjoy viewing things that express your life today. The excess of stuff can be confusing, and you may be reaching the point of serious overload. Here are some tips to help you move the roadblocks and get started.

“I have wanted to de-clutter for years, but don’t know where to begin.”
First, acknowledge the need to take control of your environment. Are you about to show your home for sale? Or, are you are moving to a smaller place? Or do you dream of a cleaner, simpler lifestyle? Second, consider getting some help. Your stuff is personal and has deep roots. A friend or professional organizer can help you to let go of some of it.

“I’m not sure what is clutter, and what is important.”
Some people do not see clutter. They are more auditory or emotional in how they perceive. They don’t see the six hair brushes in the bathroom drawer, along with old toothbrushes, expired medicines, and pens that don’t write. If you are one of these folks, it would help a lot to enlist the help of a visually oriented friend or professional.

“I might need this someday.”
Famous last words. How often has my husband said, “No, don't throw that out. We might need it someday.” Ten years later we still have those extra rolls of carpet, fan pull chains, old manuals, etc. Lots of things hanging around tend to fit into this category. But, think about it. Can you live with having to replace something once in a while? After all, spices and canned foods don’t taste as good after ten years. Give yourself permission to need something someday and not have it. The cost of saving extra stuff can be quite high.

“Magazines cannot be put in the trash.”
Yes they can. People do it all the time. National Geographic is not a national treasure. And, there are libraries, schools, and other places to drop them off. Today, we have to be ruthless about paper. Don’t expect to read everything that comes into your home.

“If our stuff were more organized it would not seem cluttered.”
False. You have been moving this stuff around for years. Re-sorting is just a temporary solution. It is time for a lot of it to go out the door. You will be amazed at how easy it is to organize less stuff.

“If we just had more shelves, file cabinets, clear shoe boxes, labeled bins, we could find places for things.”
This is more avoidance thinking. The idea is to get rid of the stuff, not to label it. Sorting and re-stacking takes energy, and the constant need to do this is stressful. Visualize a clean, organized, simple environment.

“I would get rid of this if someone (the kids, perhaps) would take it.”
This requirement is a common way to table the issue. You want someone to take over your stuff. This may be more of an impediment than you think. It takes time to contact recipients, find out their responses. The chances are good that they will want you to hang on to it for them, since they are short on space. It might hold up your de-cluttering for years.

“I’ve been meaning to get that thing fixed.”
Ok, it was a shame that that calculator only lasted a few months, but you know, it has long since been replaced. The one-in-one-out rule is a good one. Let’s let broken things go, and get them off your to-do list. Two words: Good Will.

“Some things just can’t go in the trash because it’s bad for the environment.”
I know. But, how far away is the re-cycle place? It’s not another state. All that old paint, car oil (that you don’t change yourself anymore), batteries, and bug poison is really unpleasant to have around. Hire a teenager to haul it over to a re-cycle center for you.

“I can’t get rid of this. We bought it on our trip to the wine country. Or, it was a wedding gift. Or, it’s been in the family for years."
Yes, some things are mementos of trips and good times in life. But will smaller or fewer mementos do? Will digital photographs of some items serve as mementos? Getting rid of some stuff that is not to your taste, or does not fit your lifestyle anymore does not negate how happy the time was. Will one clay figure from sixth grade pottery class be fine? Do you need six or seven? The goal is to move on from the past, and have a functional, stress free living space now.

“My closet is overloaded, but I’m planning to lose some weight.”
What about those clothes that don’t fit? They’re the reward you’ve been promising yourself for losing that weight. But, you know, it doesn’t work that way. You won’t lose weight any faster with a ton of clothes (that don’t fit) crammed in your closet. Plan to get yourself with some new clothes. That is really more of a reward to look forward to.

When you have taken control of clutter in your home, your will find that your have a renewed energy to take on new things in life. Managing the chaos of clutter and a long to-do list takes a lot of energy. A clean, minimal environment is a simple everyday joy. You may be able to do this yourself. There are plenty of self-help lists online. However, the boost from a consultant will be invaluable in getting you started. From time to time, you will need to come back and re-visit your clutter. It is an ongoing deliberate process. But the rewards are great.

More on preparing your home for sale at: Austin Texas Real Estate Guide

The Best Time to Remodel, and Why

2009-12-04T20:54:00.003-06:00

When people are getting ready to put their home on the market for sale, they often ask if it would be a good idea to remodel. Generally, the answer is, “No, this is not the time to undertake a serious remodeling project.” Most projects only return a portion of the cost in the sale price of the home. Of course, this does not mean that a home seller should not make repairs, paint, and stage their home.

A profitable remodel takes a lot of skill, market savvy, and luck. It is possible that a few minor, strategic touches can transform a house, but those opportunities are rare. The flip-this-house programs on television do not translate to the real world. Professional remodelers buy low, make some improvements, and tolerate a certain amount of risk. Many factors can affect profitability. For example, the home may already be at peak value for the neighborhood. Or, prices may fall due to economic conditions. Or, you may make changes that are important to you, but do not create higher resale value.

Therefore, think of remodeling as a way to improve your home for you and your family. It is well worth it to consult with an architect and Realtor before proceeding. They will know the latest trends in materials and colors, and will bring a higher level of expertise to your job. Sometimes people make the mistake of not thinking deeply enough about how to improve their home. You may be thinking of enlarging the kitchen, when you could simply open a wall to have a lighter, bigger space. It is more cost effective to make better use of the space you have than to add on.

One of the biggest mistakes we see is the surface remodeling of a house, room by room. This misses the opportunity to consider how the architecture of the space can be redone to create more dynamic changes that improve the livability of the house and its market value.

Here are seven popular reasons for doing a remodeling project:

Stay in Style:
Colors and finishes transition to new styles about every ten years. For example, in the early 1990’s bath tile tended to be white with green or maroon accents. In the 2000’s that was out, and granite or travertine was in. Now we see glass tiles, concrete, and engineered stone. People want to refresh the look of their homes. Staying in style with the current trend in colors and finishes adds to the value of your home. It gives it emotional appeal – an important thing to have when you are ready to sell. Finishes are not difficult to change, and they make a big visual change – a lot of bang for the buck.

Get Ready for Move In:
An optimum time for updates is just after the purchase of a home. Vacant houses are much easier to work with. This is the time to attack that popcorn ceiling, remove old wallpaper, re-finish wood floors, paint, and re-carpet. It is safer and faster to work in an empty space.

Build Bigger Closets:
In small homes the most common addition is a new master bedroom and bath. Modern baths are bigger and brighter than they used to be. Although the trend is toward smaller baths, we have moved from humongous to simply big. Closet needs today will not go back to the 1950’s. The limited closet space in older homes will simply not work for today’s buyers.

Bring Kids In:
A popular motivation for remodeling is the need for more living space for expanded families. Couples have more children, or children get older and want more space. We see game or media rooms added for teenagers, as well as outdoor spaces, such as covered patios or pools.

Move Kids Out:
It is not uncommon to see homes re-done after the kids move out. Couples want to clean out and simplify their lives.

Improve Kitchen Appeal:
By far, the kitchen is the room most often updated. This is the heart of the home and gets the most intense use. When it looks dated or worn, it establishes the condition of the house. This is the area that has the best return on investment. New appliances, countertops, lighting, floors, paint, and updated cabinets are very visual improvements, and can transform the look of the home. These changes are enjoyable to live with, and are upgrades that add market value. So, kitchen updates are a win on several different levels.

Expand to the Outdoors:
A better connection with the outdoors will add to the emotional appeal of your home. People love front porches, screened rooms, covered patios, and courtyards. Improving tired old landscaping can make a huge difference. One of the most common remodeling mistakes is not realizing that old, woody shrubs come across as stodgy, and set a dated tone before people even come inside.

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Kitchen Countertops Today: Granite and Beyond

2009-11-28T14:52:00.003-06:00

Kitchen countertops make a strong design statement in your home. They are highly visible and tactile. The material you use should be able withstand heat, stains, and intensive use. And it should be a good fit with your home style. The cleaner, greener trend in home design today has opened up new choices in kitchen countertops. A big thank-you to Steve Rymer, the owner of Architectural Tile & Stone, who patiently shared his thoughts on new ideas in kitchen countertops.

Granite

Steve says polished granite is still the most popular surface for countertops, and for good reason. Granite is a very dense stone made of crystallized minerals formed at extremely high temperatures. It is not subject to etching by cooking acids, or to scratching by knives or pots and pans. Steve says selections today have moved away from busy granite patterns. This coincides with a housing trend toward modern styling with cleaner lines and simple, soothing colors and patterns. Although non-shiny finishes are now available, he does not see a strong movement toward the use of honed granites on countertops. When granites are matt finished, the natural colors and patterns are subdued or lost. In granites, Steve sees the demand at about 95% for polished material, and 5% for honed.

There are several finishes for granite:

High Gloss Polished – This is the most reflective and the least porous of the surfaces available. Fine polishing brings out the depth, color, and pattern in granite. Each piece has it own natural movement of pattern and color.

Honed Finish – To create a honed surface, the polishing process is not taken to its full potential. Rather than a 3,000 grit polished surface, it is taken to a soft sheen 600-grit surface. The result is a less formal, satin finish. The surface is more absorptive, so it will show stains easier than a closed-pore polished surface.

Leather Finish – A leather finish begins with a honed surface; then it is swept with diamond tipped brushes. The process brings back the color and closes pores on the surface. The result is between polished and honed. It has more sheen and is less porous than a honed finish.

Flame Finish – To create this surface, blowtorch-strength heat is applied to the granite surface. This causes some of the granite crystals to explode and shatter, leaving a highly textured surface. This surface is more suited for exterior paving, rather than for countertops.

River Washed – To create this surface, the granite is first flamed; then it is wire brushed to smooth out the sharpness of the surface. The result is a rustic texture with an aged, irregular finish.

Marble

The marble family – limestone, travertine, marble, onyx – starts out as sediment from shells and plant matter. After millions of years under pressure, this forms into stone. Because its main component is calcium, it will react to acids such as vinegar and citrus. Marble can be used on kitchen counters as long as there is some tolerance for stains and scratches. Steve strongly recommends the honed marble surface for kitchen countertops, rather than polished. This is because the less perfect finish will accept wear and tear more naturally. The honed surface offers a softer, less formal appearance.

Slate and Soapstone

A New York designer recently asked for Pietra de Cardosa. This is a grey stone from northern Italy. It is a type of slate – but very hard. It must be cut with granite cutting machinery, rather than tile machinery. This is a granite alternative that does not have a lot of pattern movement. Soapstone is also a granite alternative. It is a very dense stone - more so than even granite. Since soapstone is impenetrable, it will not stain. It has been used for years as a work surface in chemistry labs. The colors are mostly grays and blacks.

Limestone

Limestone is an organic stone similar to marble, but not as hard. It is readily available and easy to cut. Limestone can be sealed and used for kitchen countertops. However, there is likely to be some mottling and variations in color over time, as the calcium in the limestone is exposed to acids used in cooking. Jerusalem Stone is a type of dense limestone found in Europe and the Middle East that is used for countertops. It offers a warm, soft look in creams and earth tone colors. Since limestone is absorptive, it should be sealed regularly. Some staining and variations in color is a part of its organic, rustic look.

Engineered Stones

The trend toward cleaner, greener finishes has led to greater use of engineered, or composite, stones. Engineered stones are made from about 93% quartz, 7% epoxy, plus resin and color. The use of crushed material is less wasteful, so it is considered a greener choice. Quartz is readily available. However, cutting and shaping of the material is done by fabricators. So the cost is about the same as many granites or stone slabs.

Engineered stone is more homogenous in appearance than natural stone slabs. There are no swirls and veining showing its creation over millenniums. Some familiar names are:

Caesarstone – evokes the look of limestone

Cambria – a mock granite look

Silestone – a very dense, polished surface

Okite – introduces a veined marbled look

Tile

Ceramic tile continues to be used mostly on backsplashes in kitchens. On kitchen counters, it is scratch and heat resistant; however, the grout needs to be sealed for optimal stain protection. Tiles cut from stone, such as granite or marble, can be set tighter together than ceramic tile, keeping the grout joints very narrow. Stone tiles come in a variety of sizes, and are less expensive than slab material.

Icestone

IceStone is a slab product made from recycled glass in a cement base. It offers a clean, modern look, in a variety of colors. Because it makes use of recycled glass, it is considered a green choice. The cost is similar or higher than many natural stone slabs.

Concrete

Concrete is a porous material that absorbs stains easily. A good fabricator can build a beautiful, soft colored, well sealed countertop. Although it is sealed, the homeowner should expect some mottling and staining over time. That is a part of the more organic look of concrete. A professional fabricator must be able to pour and finish the counter in place. There is a lot of art and craft to making a concrete counter. Although concrete is inexpensive, the labor brings the cost up to that of some stone slabs.

Stainless Steel

Stainless steel is a good fit with today’s chic, contemporary look. It has been used for years in professional kitchens. Steel is stain resistant and durable, but does scratch and can be loud. There are brushed or textured finishes that help camouflage scratches. And, when attached to a wood under-layer, it is more sound resistant.

Happy holidays to everyone!

Thank-you to all of you who have sent us friends and associates who need to buy or sell houses! Keep sending!

Please join me on Facebook and Linkedin

Thanks,

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
http://www.weloveaustin.com/

Posted via email from roselind-hejl's posterous

1970 Vintage Home - A Work in Progress

2009-11-09T14:38:00.004-06:00

Jennifer and Tony Latto, and their two girls, have a 1970’s vintage home in a very nice neighborhood of Austin. Jennifer, who is a registered architect and interior designer, has made some interesting updates to their home.

Roselind:
Jennifer, first of all, thanks for sharing your ideas on the ongoing remodel of your home. What have you done so far that has made a difference?

Jennifer:
We arrived from Boston just over two years ago and moved into a 70s home in Bee Cave Woods. We loved the open floor plan, the private yard, the existing trees, and the location. The home was smaller than those we’ve had in the past but we recognized the potential!

We tackled items that were relatively inexpensive first, just to get the house to where it felt like “ours.” Since I earn a living improving environments, I have a hard time staring at the ordinary or run down! This trait drives my husband crazy because I constantly want to make upgrades!

Most of the work we have achieved thus far was outside; however, one of the biggest impacts was to reface the stone fireplace with gradient glass tile on the vertical surface and a quartzite slab hearth to match the kitchen. This is a focal point for our living area and always extracts comments! I’ve included a photo (even though we have yet to grout it!).

Roselind:
I’m glad to hear that you are like most folks – remodeling is something that does not get done all at once. It can go on for years – and that is OK. Shaping a home takes time.

Tell me a little more about gradient glass tile. I can see that is goes from a more intense color at the bottom to a lighter shade. Where did you find this tile? And, quartzite slab? What is it, and where do you find it?

Jennifer:
This is our fourth home remodel in ten years. We’re a bit tired but there’s still always a project around here and we attack them when finances and schedules allow! It’s really a lifestyle!

There may be other resources for this but the tile on our fireplace is from Hakatai, www.hakatai.com. I loved their program for customizing the blend from their glass tiles. You can select the tile colors used. By adding the same color twice, the intensity of that color is increased. A minimum of two colors is required but a maximum of ten can be used. Their custom design tool will allow you to preview the design and it generates a price. The same tools are available for a custom “blend” which are popular for kitchen backsplashes and bathrooms.

The slab is quartzite, which is a man-made material composed of about 90% quartz combined with pigments and polymer resins. It is stain, scratch, and heat resistant and doesn’t require sealing like natural stone. It can cost just as much, or more, than granite and marble but I love the modern monolithic look and you can’t beat the durability. Vivid colors are also more readily available than in natural stone as well. CaesarStone and Silestone are two brand names.

Roselind:
Your backyard is amazing! I remember when you bought the house, I was pleased with the big back yard – but it was pretty boring. What a difference now!

Jennifer:
Tony and I both grew up in the Southeast. We have been corporate gypsies landing in Raleigh, NC, Portland, OR, and Boston, MA. When Tony received an offer from Dell, we couldn’t wait to get back to the South and found Austin to be everything we were looking for with the weather, people, and lifestyle. We gave away our snow shovels and made a commitment to a better life outdoors. We agreed that the backyard was our favorite place and we were lucky that it was a “blank slate”.

We evaluated joining a local pool versus building our own. In an ideal world, we’d have both but having our own pool was more attractive because it would make our backyard the private escape and social place we wanted. And when those temperatures soar, we gather outside and enjoy our investment (although Tony still calculates the dollars per dip)!

This spring we added a limestone patio with a fire pit. This is used a lot, especially in the fall. Tony was an Eagle Scout and loves to make fires and even cooks in a Dutch oven out there!

The kid’s trampoline and swing set is in a mulch bed and disguised behind palms. This area serves a more durable space for our pets too. There is a storage area where pool supplies and equipment is kept. We hid this behind a wire fence and flowering vines. We stained the existing wood fireplace a dark brown for a dramatic background. The Tiki torches, string lights, and pool lights liven the atmosphere and show my passion for lighting. Essentially, our outdoor space has been subdivided into comfortable “rooms”. Each area has casual seating in groups perfect for entertaining.

Roselind:
Are there parts of the interior that you want to tackle in the future?

Jennifer:
The next steps are refinishing the hardwood floors with a darker stain and a glossier finish to go with our décor. Then, we are replacing an old sliding glass door to the pool with a window and a bar counter for serving food and drinks from inside. I hope these will be done in the next six months.

Here’s my wish list (Tony rolls eyes):
I’d like to expand our kitchen. We usually eat at the kitchen island table and when the kitchen has all four of us and two big dogs nearby, navigating the room for the forgotten condiment proves challenging. We have an enormous pantry that is great for storage but by expanding into this and a garage workroom, we gain about 7 more feet of floor space and another window in the kitchen.

We would like to replace the ceramic tile in the kitchen and baths although my husband and I have not agreed on a material yet. We own some basalt and granite slabs and copper sinks for the bathrooms and are just waiting on funds for the installation! We would like to replace the standard fiberglass tubs with something more modern as well.

Eventually, we plan to add a master suite over the garage to gain a guest bedroom. This addition will serve to modernize the ranch exterior as well. We’d like to build a pool house that serves as an office and bathhouse. The entry will be off the limestone fire pit patio. This is our forever home so we’ll build as we need instead of moving!

Roselind:
As an architect and interior designer, are you open to helping others who are thinking of remodeling?

Jennifer:
Although I specialize in commercial work, specifically corporate and medical offices, during these times, I’m finding residential work is more readily available. I used to think that the residential market was so different from the commercial world; and in way they are - different codes, materials, and client approach. But it’s all still design and it’s what I love to do! I’m working on a kitchen remodel and overall facelift for a neighbor now. My website is http://www.reddesignstudios.com/. I’m new to the area and am still building my practice, so I think I offer a great value on consultations.

Roselind:
What advice do you have for people who are thinking of undertaking a remodeling project?

Jennifer:
I have found that many people may overspend on a project if they don’t have a professional partner. Not “overspend” like they’re being overcharged but “overspend” because they spend money on things that don’t give them the biggest impact. Many people are also missing out on real estate bargains or investment possibilities because they cannot see potential in the available property. Having a professional shop with you can help the buyer understand how easily their goals and style can be obtained.

Austin Texas Real Estate Guide

Remodeling Decisions That Add Value: Better Living Areas

2009-11-01T18:20:00.003-06:00

The main living room is the central core area of your home. It is both a private and public space that you share with family and guests. The main living room should easily connect with dining areas, kitchen, and hallways to bedrooms. This space should be given top priority in the hierarchy of rooms. However, too often it is not.

Sometimes the front door opens right into the living room, and the passage deeper into the house cuts right through it. Please! Before you go a step further, stop to imagine how you would furnish and enjoy being in a room like this. If you home has this layout, consider some serious surgery to correct this problem. Never allow walkways to cross through the middle of living areas. This creates an unsettling division within the space which no furniture placement will solve. If you have this floor plan, face up to it, and make the necessary changes before moving on.

Most buyers today prefer two or more living areas. In addition to the main living room, these may include a family room or den, a study, and a game room. The trend today is to avoid wasted space. Rooms that are used primarily for display have very little actual use and value. Consider converting an unused formal living room into a study. Sometimes a wall can be opened up to bring a seldom used room into a real relationship with the house. This is much cheaper than adding on more space. Remodeling tip: Make better use of the space that you have. It is cheaper than adding on.

The “greatroom” is a popular layout that combines the living-dining-kitchen space. This open style is efficient in its use of space, combining multiple uses. The house seems bigger than it would if divided into small rooms. You will be able to work in the kitchen and talk with family members and guests in the living area. If you can open a wall to allow a better connection and more light to flow between spaces, you will be making a change that most buyers prefer.

If budget allows, a gameroom is a space that serves a multitude of functions. It is a more private living area that is often used for TV watching, computers, pool table, or children’s toys. The gameroom is often an upstairs common area that connects to bedrooms. Special media rooms are sometimes added, although the trend today away from extra rooms that receive infrequent use. Consider combining a media room with pool table, ping pong, or other gathering room functions.

You cannot think about living areas without considering the traffic flow through rooms. A natural and logical flow will guide people from the front door into the heart of the home – the main living area. The pathway should not cut through the middle of rooms, or make you skirt around furniture. Visitors should not be confused as to where to go. A logical floor plan is crucial to making visitors feel welcome and comfortable in your home.

A great living area draws people into it in a natural way, and provides a center for common activities. Remodeling decisions that place great importance on the main living area add value to the home.

Austin Texas Real Estate and Homes For Sale

Remodeling Decisions that Add Value to Your Home: Historic Connection

2009-10-21T19:59:00.004-05:00

If you are planning a remodel, consider building your improvements around the best original design features of your home. Historic elements contribute to an enduring style and will be more valuable to buyers if you decide to sell.

A sense of historic connection is valued by buyers. People love clues to the past. Don’t be afraid to blend old finishes with modern ones. The one-of-a-kind, eclectic look is much desired, instead of a mass produced sameness. Sometimes folks rip out interesting old finishes and replace them with bland, standard issue cabinetry or tiles. They miss the chance to create a truly unique combination of new and old. Historic features endure and will give a sense of timelessness to your home.

Wood windows and doors, wall panelling, period door knobs, old stone steps, original baseboards, and refurbished fixtures can add a touch of historic significance to your home. People are delighted by retro bath tiles combined with a splash of new wall color. Consider working with the old fireplace tile or stone before tossing it into the dumpster. Retro wallpaper can be a great find. Old wood siding can find new life on a ceiling. These touches of original character can be incorporated into your design to create a unique final product.

The Craftsman style, built in the early 1900's, is in very much demand. Rustic stonework, deep eaves, tapered columns, stained woodwork, and wide trim reflect the handmade look that people love.

Farmhouses are a great style choice for today. Reclaim the basics of this style - simple floor plan, hardwood floors, wood windows, local stone, and muted colors that connect with nature. Like farm buildings, the rooms are informal, somewhat sparse, and provide just what is needed.

Younger folks are breathing new life into their parent's ranch style and split level houses from the 1950’s and 1960’s. Mid-century modern furniture, paint colors, fixtures, and rugs are all the rage, and help to bring this style back into top form.

Urban modern has been around since the 1950's, with experimental use of space, color, glass, plastic and metal. Simplified spaces with clean lines and fresh colors are an antidote to today's complex lifestyle.

When planning a remodel, take care to reinforce and build on the design strengths that it already has. Your results will achieve greater value and stand the test of time.

Austin Texas Real Estate Guide

Austin Real Estate Market: 3rd Quarter 2009

2009-10-13T10:44:00.002-05:00

The Austin real estate market tightened slightly during the 3rd quarter of 2009. Inventory for Austin as a whole is balanced - with a level of 5.7 months of supply. This is down from 6.3 months of supply at the end of the 2nd Quarter. However, throughout the Austin area, there are local variations in the market. Here is a map showing the state of the market within each local area: 3rd Quarter 2009 Market Data

Sellers Markets: 1 - 3 months of supply

There are 9 local areas with less than 4 months of inventory. These are all located in the close-in suburban part of Austin. Median home prices range from $100,000 to $400,000. Homes in these neighborhoods are mostly limited to re-sales. Builders have generally moved further out to find lots for new construction. There is strong demand for these close-in areas. Mortgages are readily available. And, the first time homebuyer tax credit has drawn buyers into the market. Strong demand has kept inventory at low levels.

Balanced Markets: 4 - 6 months of supply

There are 17 local areas with balanced markets. The balanced markets are distributed throughout central core areas; close-in suburban areas; and some outer-suburban areas. Median prices in these neighborhoods range from $100,000 to $400,000, with a couple of areas up to $600,000. There is some new construction in these areas – which increases inventory. Readily available conforming mortgages; first time homebuyer tax credit; and low interest rates have improved the demand side, and kept these areas balanced.

Buyers Markets: 7 + months of supply

There are 20 local areas with over 7 months of inventory. Median home prices in these areas vary from $100,000 to over $1 million. Generally, these neighborhoods have more new home construction available - which increases supply. Upper end homes continue to have higher inventory than the lower and mid level part of the market.

Upper End Market:

Areas with many homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods have been popular locations for speculative building or remodeling.

Although most builders have slowed or stopped speculative building in the high end, this level of inventory has been slow to contract. This is because mortgage money is not as readily available for buyers of high end homes. Jumbo mortgages (over $417,000) require 20% down payment; excellent credit and income; and a higher interest rate. Many buyers in this market have been unable to sell their previous home in another state, and this has slowed the demand for high end homes here.

Months of supply on the market for homes over $800,000:

                 1st Q       2ndQ       3rd Q

Area 1B    25.1         28.7         27.2

Area 8E    21.0          21.6         17.8

Area 8W   22.1         23.7          24.6

Area W     24.0         25.8          20.7

Area LN    34.0        40.4          56.6

Area LS     28.8        38.8          41.1

Area RN    18.6        20.2          20.9

Foreclosures:

On average, foreclosures are 3.1% of listings on the market – not a significant part of our market. (1st Quarter was 3.7%; 2nd Quarter was 3.6%) However, some sections of Austin have more foreclosures than this. These include the Manor, Elgin, Bastrop and some Southeast areas. Here you may see foreclosures at 8% to 12% of listings. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market. The good news is that these neighborhoods do not have very high inventory levels. This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Conclusion:

In Austin we are not faced with serious depreciation, as a result of prices that were pushed to unsustainable levels. We are not faced with a serious foreclosure problem, generating its own downward spiral. And, we are not faced with widespread job loss.

Joel Kotkin, whose research appears on Forbes, ranks Austin as the best big city for jobs. He writes, “Few places have received more accolades in recent years than Austin, the city that ranked first on our list of the best big cities for jobs.

Builder Magazine placed Austin second on their list of the “healthiest housing market for 2009.” Their study says: “While other markets lost employment, Austin added 17,400 jobs last year – a 2.3% growth rate. It helps that Austin is home to both a major university and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $188,600, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008 -- 2.7%. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.”

For buyers in all price ranges it is a great time to come into the market. Interest rates below 5% are the best in a lifetime, and they certainly will not remain this low. This is not the time to be waiting around for a better deal. It is the time to start shopping for a great place to live in Austin!

Austin Texas Real Estate Guide

Austin Hill Country House - Quest for Sustainability – SIPS Roof

2009-09-26T18:57:00.014-05:00

When Cheryl and Eric Cosway decided to build their dream home in the hill country south of Austin they teamed up with Bill Moore, Austin’s original green builder. Their passion for building green, combined with Bill’s technical knowledge, led to a truly sustainable home - built with sensitivity to the health of it occupants, use of energy, cost factors, footprint on the land, and to its impact on the environment as a whole.

This is a blog series on the green elements of this “5-Star Energy Rated” house. Thanks to Cheryl Cosway and Bill Moore for sharing their thoughts.

Roselind: I understand that you used a SIPS roof ? What is this? Why was it selected?

Cheryl: Yes, we decided to use a SIPS roof, which stands for Structural Insulated Panels. These panels are usually made from expanded polystyrene sandwiched between two sheets of OSB. Bill Moore recommended that we consider the SIPS roof because it is extremely well insulated and sealed. There is also very little waste since the panels are pre-cut by the fabricator. The SIPS roof appeared to be our “greenest” option.

Bill: Every custom job has its own set of design variables. The site location dictates the view, the direction of cooling winds, and how the passing of the sun relates to the house design. In this case the view was to the north and the breezes came from the south. So, the roof was designed with a shallow pitch that mostly faced south.

The south facing roof design prepared the home for future photo voltaic panel placement. It also shades the interior from the summer sun by putting the ends of the house on the east/west axis.

When viewing the plan, I noticed how the simple roof design and the vaulted ceilings were well suited for a SIP (Structural-Insulate-Panel) system for the roof. This system was developed to reduce the energy load of the house, and shorten construction time.

I prefer to only use a metal standing seam roof on these panels because they are a structural unit. If the roof leaks, the structural strength can be compromised, and replacing a panel is extraordinarily difficult. But the standing seam metal roof was already a part of the design parameters, so that was not an issue.

Also this site is on a bluff with the potential for severe wind storms. This interlocking roof panel system is designed for high wind speeds. After Cheryl and I discussed the benefits of this greener approach, she agreed to go this route.

Roselind: So, the long, simple roof design made it a good candidate for a SIP system. Let’s talk about the panels themselves. Cheryl said that SIPS are made from rigid foam insulation sandwiched between two sheets of OSB. OSB is oriented strand board - made from wood strips laid in cross orientation, similar to plywood. The foam insulation core makes it very efficient in keeping a stable temperature inside the house. What about the cost? How do you compare between SIPS and conventional roofs?

Bill: As is usually the case with comparisons – it is a difficult question. The SIPs panels are expensive and were ordered months in advance. We needed a forklift to unload the delivery truck, and we needed a small crane for a couple of days to put them up. But, it only took a few days to install a very large roof system. And, all the high value foam insulation was part of the system, with no waste and much less labor. All total, it may have cost a few thousand more total, but the energy savings should make up the difference in a few years with a return of continued savings after that.

Roselind: I can see that it is not possible to make an apples-to-apples comparison. In a standard roof system, you would buy lumber for roof rafters or trusses, plus a layer of plywood over the rafters, plus the insulation on the floor of the attic. In the SIP system the structural and insulation components are combined.

Although SIP's provide excellent insulation and stability, they may not work well for complicated roofs. In order to realize the maximum benefit of the SIP system, you would build a simple pitched roof, with a vaulted interior ceiling, covered by standing seam metal. The panels are pre-made, so they can be put up faster, but there is some cost for machinery to lift them up, since they are heavy. Also, I imagine there is a learning curve to installing the panels, so it would be important to use a seasoned contractor.

Austin Texas Real Estate

Austin McMansion Ordinance: Walking the Walk

2009-08-22T20:16:00.006-05:00

The Residential Design Ordinance of 2006 (revised 2008) controls certain aspects of the design and construction of homes in Austin’s central neighborhoods. In this discussion, I would like to ask two basic questions: What does the design ordinance say? And, how does it work out in practice?

Thank-you to David and Doug for sharing their experience.

David Cancialosi - Permitting and land development consultant; former city of Austin residential reviewer; member of City staff during implementation of McMansion Ordinance

Doug Marsh – Former president of Austin Remodelers Association (NARI); member of the original McMansion Ordinance task force; master builder.

What does the Design Ordinance say about house size?

David: Good question. The main objective of the McM Ordinance was to limit overall structure size on a residential lot. Prior to the Ordinance, a structure's overall size was limited by the 45% impervious cover rule. This determined how large a footprint a house could have when combined with driveways, decks and other non-permeable surfaces.

Roselind: So prior to McM, the concern was impervious cover. One could juggle some things – maybe have a short driveway, or no deck, and have more indoor space. Or, have a two story, instead of one story house.

David: The McM Ordinance introduced FAR – floor to area ratio - to residential permits - at a factor of 40%. This means that for every square foot of land, an owner can build 0.4 square feet of gross floor area - GFA. For example, if the lot is 6,500 sq. ft., the maximum gross floor area would be about 2600 sq ft.

Roselind: So this ties house size to lot size. It would be of interest to know what is included in gross floor area (GFA).

David: Basements, attached garages, covered porches above ground level, and portions of attic space count toward your allowable gross floor area. All this significantly reduces the floor area that a homeowner may apply to heated and cooled living space.

For example, a walk-out basement on a sloped lot is not visible from the front of a house. These are common given Austin's terrain. Prior to McM, this would not count toward gross floor area. And, for a certain time after adoption, basements did not count. But, revisions have been made to count basements that come three feet above natural grade as habitable space.

What about the impervious cover on the lot? Is that still an issue?

David: The impervious cover still remains at 45% for most residential properties within the McM boundaries.

Doug: When we meet with a client we request a survey of their property to check their current impervious coverage. If it appears that it is too close to call, we tell the client to get an impervious cover survey. This is where a licensed surveyor will calculate the impervious coverage. This is critical because the City of Austin will require it at final building inspection, and an overage would be a costly fix. Often times we will remove driveways or patios, to gain ground so we can increase the building footprint.

What about height requirements?

David: It is still 32' for single family homes, and 30' for duplexes. The main difference is that now applicants must show on their plans the exact elevation of "finished" and "natural" grade so staff may determine where to measure the building height from. In most cases this requires an additional topographical survey to be performed at the applicant's expense. There are limited exceptions such as chimneys, etc.

Have setback requirements changed? This refers to the number of feet back from the property line for building.

David: The zoning setback requirements are mostly the same, and are based on the zoning district's regulations. On the front setback, "averaging" is now allowed. Before, averaging was allowed only if a neighborhood had adopted it as part of their official neighborhood plan.

Can you explain the setback planes, or virtual tents?

David: One of the most significant changes implemented with McM is the setback plane. The setback plane is used to regulate a structure's impact on adjacent properties by requiring the structure to fit within a virtual tent. The tent is vertical for 15’ on the side and rear property lines; then it slopes inward 45 degrees. The tent is used to determine your vertical buildable area.

Often, many homeowners' only choice is to build up, by adding a second or third story. The tent requirement significantly reduces the potential size of any structure that may be built. There are a many challenges associated with tent requirements.

The idea was to avoid a 3,000+ square foot two-story box-shaped house overshadowing an adjacent 1,000 square foot cottage. Having two adjacent structures that are not similar in design represents a problem with respect to neighborhood continuity and the overall look and feel of a neighborhood.

Doug: There is also what is called “the remodeling exception” with regard to the tent. The Ordinance states that a new 2nd story structure may be 10’ 6” from the top of the original wall to the top of the new roof. However, this must include floor trusses, roof, and old ceiling joists. So the remodeling exception allows for only an 8’ wall height.

We work within this constraint. However, for new 2nd floors this dimension definitely limits the design. This can create issues regarding window sizing for egress, tempered glass, and the operable window rule - since the windows would be more than 6’ above grade.

Also, there is a fair amount of difficulty, as David says, in getting the required documentation to show that the 2nd floor does comply with the Ordinance. This is because a lot of surveyors are not used to providing such a document, and are unaccustomed to using a tape measure on site rather than an instrument.

Sometimes the only way to document it is to measure the components and provide a drawing to show the calculations. Surveyors are not used to drawing this type of detail. I have heard that there is a possibility that the City will be implementing a checklist that will give the onsite inspector a procedure to aid in this area.

However the net result of the tent and the remodeling exception means more cost to the Consumer: (1) Line survey for confirming existing footprint relative to property line; (2) topo survey for sloping lot for measuring height; (3) tent survey for confirming height of built structure for 2nd story buildings, (4) stamped drawings for 2nd story additions.

The side wall articulation is a new idea introduced by the ordinance. What is this?

David: There are side-wall articulation requirements where an exterior wall must bump "in" or "out" at different wall sections. This creates potential design problems on the inside of the house, such as a large bump-in located in the dining room, for example. If you do not want a bump-in in your dining room and cannot comply otherwise, you must seek a waiver.

Doug: We can see why this is in place, since the “maximize square footage on the lot” approach will often create long, tall walls. The unintended consequence comes into play when it starts driving the design process, on some projects, in an artificial manner.

Is it possible to get a variance from the Ordinance rules? How often are these granted?

David: There are limited exceptions in the McM ordinance. If a homeowner cannot comply with a McM regulation, he or she may request a waiver by appearing before the Residential Design Compatibility Commission, and explain why the design cannot comply. The RDCC is a city commission made up of volunteers. They generally try to work with applicants on a case by case basis. The problem with complying with the more arduous McM code sections is the application of a one-size-fit-all rule to the variations of small inner-city lots.

Doug: I believe the maximum deviation that the RDCC can administer is 25% say, for example, in a case of an additional FAR request.

How do you see this ordinance working out in practice?

David: The city appears to be struggling with interpreting aspects of the McM code, as are many of my clients. I think this says a lot about the complexity and practicality of the ordinance. The city has a multi-layered, confusing review process that can result in significant and unnecessary delays. Plus, the homeowner's costs for architects, consultants, or carrying costs associated with a property may result in thousands of dollars before a single permit is issued.

And in some cases the McM rules actually increase the size of a structure - making it look more like a castle than a mansion. In my opinion, if the city is going to require compliance with very complicated rules, then it ought to implement very clear, concise review procedures. Frankly, that just hasn't been done.

Doug: When we were in the middle of the Task Force effort it was very clear to me that there would be unintended consequences for us all. The main issue I see is that it is a one-size-fits-all ruling that drives design and increase costs to consumers. The implementation of the Ordinance in the field and in the permit office has been difficult because of the technical and legal aspects involved.

It seems that the City pushes something like this through in a hurry to stop abusive building practices but fails to put the training and staff in place to handle the increased load to the Staff. I think we are all adjusting.

Are there any other concerns that you have about this ordinance?

David: One concern I have is that the McM ordinance may be actually driving potential inner-city families out to the suburbs simply because it is too expensive and frustrating to comply with the existing rules. In a state that supports individual property rights and a city that promotes new urbanism, why is it so hard to see those two ideas codified?

My hope is that as long as the McM rules stay on the books the city will do its part to implement permitting processes that are less challenging to navigate. And I think that starts with adopting a pro-customer service attitude. There are a lot of bright, talented folks working for the city. If the city will think outside the box about how to deliver their services, then I believe they can implement the changes necessary to facilitate inner-city density, adaptive re-uses, and a unique, eclectic look and feel throughout the entire central area.

Doug: I do believe that the Ordinance needs to be revisited. I think that with proper training for the City staff, including the inspection department, the intent of the Ordinance could be applied more on a per property and building basis. This would be fairer to the citizens, neighborhoods, and honest builders while, at the same time, stopping the abuses we have witnessed in different neighborhoods.

View the ordinance and boundary map .

Jumbo Loans: Back in the Game

2009-07-26T17:10:00.009-05:00

Our analysis of the Austin real estate market for 2nd Quarter, 2009, revealed an elevated inventory of upper end homes. The sluggishness in this market segment has been due in part to higher rates and tougher requirements for jumbo mortgages. This Q and A is intended to clarify jumbo loan confusion, and help you be better prepared to finance higher end homes.

I appreciate the insight and advice of my professional panel: A big thank-you to:

Dan Reagan - Cornerstone Mortgage - 328-2945

David Reed - C D Reed–Integrity Mortgage - 924-6076

First, what is a jumbo mortgage?

Dan: A jumbo mortgage one that is higher than the conforming limit set by Fannie Mae/Freddie Mac. The current conforming limit is $417,000. Fannie/Freddie did categorize certain parts of the country as high cost areas and have increased the limit above $417,000 in those areas. Texas does not have any high cost areas, so $417,000 is the conforming limit across the state.

How do the rates for Jumbo mortgages compare with conforming loans?

Dan: Jumbo rates for 30 yr fixed products are about 1% higher than conforming loans. There are some attractive rate opportunities for adjustable rate jumbo mortgages that are currently in the mid 5’s.

David: Since the secondary market for jumbo loans essentially disappeared during the mortgage “realignment,” jumbo rates have been all over the map. Most lenders offered jumbo loans as high as 2% over conforming rate. There were some portfolio lenders (meaning banks that issue the loan with no plans to sell it, but instead keep it in their portfolio) with good pricing on jumbo loans. These loans are of the hybrid nature, meaning the interest rate is fixed for, say, 3 or 5 years before turning into an adjustable rate.

Before the mortgage crisis hit, a jumbo rate might be ¼ to ½% higher than a conforming rate. Now lenders might price a fixed jumbo rate at 1.5% - 2% higher than conforming. Recently, however, we’ve seen some definite thawing in the jumbo market, with certain lenders getting very aggressive. A few lenders are offering jumbo rates at around 1% higher than their conforming cousins.

For instance, you can find a 30 year fixed conforming rate at 4.75% (with a point) and a jumbo rate at 5.75% (with a point). When you consider that just a few months ago conforming rates were in the 5 - 6% range, this is not bad.

Not all investors are jumping into the jumbo pool, but are keeping their jumbo rates artificially high. When lenders don’t want to issue a certain type of loan they essentially price themselves out of the market.

What is the debt/income ratio for jumbo’s, compared to conforming loans?

Dan: 40-45% total debt to income ratio is typical for most jumbo lending products. Required reserves are typically higher for jumbo financing than the requirements for conforming financing.

What about the down payment requirement?

Dan: There are some opportunities to allow for a 10% down payment, depending on the purchase price, but a rule of thumb is that 20-25% down is typically required for jumbo lending.

David: Most jumbo lenders ask for a minimum of 20% down, but may require more based upon both the loan amount and credit score. For instance, someone with a credit score of 720 may borrow up to $1MM with 20% down; but with a 680 score the maximum loan amount may drop to $650,000. Typically, the higher the loan amount, the more down payment might be required. With a higher credit score, less may be put down.

Jumbo lenders can have their own internal pricing structures, unlike conforming loans underwritten to Fannie or Freddie standards. But commonly jumbo lenders require a minimum of 15% down, while asking for a minimum 680 credit score.

There are other options when higher end borrowers have their own private banker at their retail or investment banking institution. Such private bankers are able to offer more favorable terms, larger loan amounts, and even lower down payments if the borrower has other financial assets, such as stock, bonds or insurance needs. Most every major bank has a private banking division. If you’re one of those with considerable financial assets, the first place you should call for jumbo financing is your private banker.

What about credit scores? Are they higher for jumbo borrowers?

Dan: Most jumbo lenders require a credit score of 720 or higher. There are a few investors that will allow a credit score as low as 660.

What about the loan length for Jumbo’s? Can people get 30 year fixed rate loans?

Dan: 30 Yr fixed loans are available, but those rates will be at least a full percentage point higher than a 5 year adjustable rate mortgage.

Is it still possible to do a 1st and 2nd lien to avoid doing a jumbo loan?

Dan: This strategy is used often as of late. The problem can often be that 2nd lien loan amounts have been reduced quite a bit. The maximum 2nd lien loan is $150,000. So, if a buyer is purchasing a home for $630,000, they can get a conforming loan at $417,000 and a maximum 2nd lien of $150,000, thus allowing the buyer to use only 10% for the down payment.

David: Yes, but 2nd lien lenders have reigned in some of their lending criteria, and have pulled back on the amount of money they’ll lend. Because 2nd liens are in a subordinate position, you will find them harder to qualify for than a conforming 1st lien. For example, someone with excellent credit can get a 1st lien approved with a 49% debt to income ratio. But the 2nd lien lender might only allow a 45% ratio. Second lien lenders are becoming fewer and fewer and their guidelines are tightening every day.

A 1st and 2nd lien combination is always a consideration, but it’s not always a “hands down” choice. The larger the 2nd lien, the more it can wipe out the advantage of having a conforming rate on the 1st. This is because 2nd lien rates are always higher than 1st lien rates by far.

If the sales price of the home is in the mid-jumbo range of $600,000 to $800,000, then the 1st and 2nd lien combo makes sense.

Do you find that appraisers are being harder on higher end homes?

Dan: I wouldn’t say that appraisers are being harder on higher end homes. It can be more difficult to obtain the necessary value for higher end homes due to the availability of recent comparable sales to support the value. Investors typically want comparable sales to be in a recent 90 day period, which is a much shorter time frame than was required in the past.

David: I haven’t had that experience, but higher end homes have fewer comparable sales than those closer to the median, which could impact an appraisal. I had a client who bought a home in West Austin for $695,000 and the appraisal came back at $740,000, so it’s more of what’s sold recently and less of the fact it being a jumbo.

What would you recommend to someone who needs a jumbo loan? What should they expect?

Dan: Jumbo lending conditions have improved over the past few months. There was a time recently when jumbo terms were quite unattractive. Now many investors have decided to jump back into the jumbo lending market. Underwriting turnaround times can be a little longer so I would plan for at least 5 weeks for underwriting to complete their process.

David: Prepare for it like any other loan. Have good credit; expect to put down 20%; and provide two years of tax returns (if self employed), or two years W2s and pay stubs. Jumbo loans, like conforming ones, haven’t as much tightened their lending guidelines, but instead have returned to their original roots.

A common fallacy I still hear nearly every day is that jumbo money isn’t available. Not only is it still available but the rates are becoming more and more aggressive. In the current environment, if you’re a buyer thinking of buying, and you can get a jumbo rate under 6%, there is no reason to wait - because the money is there waiting for you.

Austin Real Estate Market: 2nd Quarter 2009

2009-07-09T12:00:00.010-05:00

The Austin real estate market remains balanced overall, although there are pockets of high inventory, particularly in upper end homes.

In our second quarter market analysis we focused on the number of months of inventory for sale in each MLS section. Our goal in this study was to spot changes in inventory that show the direction of market. This data is for single family houses, without condos.

2nd Quarter results are posted here: Austin Market: 2009-2nd Quarter
1st Quarter results are posted here: Austin Market: 2009-1st Quarter

Austin as a Whole:

For the Austin area as a whole, the inventory of houses on the market was 6.3 months at end of 2nd Quarter, 2009. By comparison, the inventory was 5.9 months at end of the 1st quarter. So, inventory has grown slightly, but our position is still at a medium level. Overall, Austin continues to have a balanced real estate market.

Austin in Sections:

We reviewed 45 different geographic sections in the Austin area:

Seller’s Markets: 7 sections had less than 4 months of inventory

Balanced Markets: 18 sections had 4 – 6 months of inventory

Buyer’s Markets: 20 sections had over 7 months of inventory

The buyer’s market sections were not so overloaded that they brought the whole Austin market into “buyer’s market” range. The overall average for the Austin area was in the balanced range – at 6.3 months of supply.

Price Range:

It is clear from this study that higher priced homes tend to be over supplied in most market areas. Areas with many homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods tend to be selected by builders who add to the supply. We expect to see this inventory dropping, since new starts are down. However, by the end of second quarter the number of homes for sale over $800,000 increased.

Months of supply, by section, for homes over $800,000 are:

1st Quarter Months Supply

Area 1B - 25.1

Area 8E - 21.6

Area 8W - 22.1

Area W - 24

Area LN - 34

Area LS -28.8

2nd Quarter Months Supply
Area 1B - 28.7
Area 8E - 21.6
Area 8W - 23.7
Area W - 25.8
Area LN - 40.4
Area LS - 38.8

Foreclosures:

On average, foreclosures are 3.6% of listings on the market – not a significant part of our market. At the end of the first quarter they were 3.7%, so not much change. However, some sections of Austin have more foreclosures than this. These include the Manor, Elgin, Bastrop and some Southeast areas. Here you may see foreclosures at 8% to 12% of listings. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market. The good news is that these neighborhoods do not have high inventory levels. This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Conclusion:

In Austin we are not faced with serious depreciation, as a result of prices that were pushed to unsustainable levels.

We are not faced with a serious foreclosure problem, generating its own downward spiral.

And, we are not faced with widespread job loss. We are a city that people are moving to. Forbes ranked Austin #2 in

Top Ten Cities for Relocating, citing “the metro area's thriving music, film and fine arts scenes, but it's also about the employers, which include University of Texas, Advanced Micro Devices and Dell.”

The current market still has higher than normal inventory in many popular neighborhoods - where builders were counting on faster absorption. This is true of all price ranges, and is especially noticeable in the higher end.

For buyers it is a great time to come into the market. Interest rates are the best in a lifetime, and they certainly will not remain this low. This is not the time to be waiting around for a better deal. It is the time to start shopping for a great place to live in Austin!

Website: Austin Real Estate www.weloveaustin.com

Austin McMansion Ordinance - Considering the Consequences

2009-05-31T13:38:00.003-05:00

Austin attorney, Chris Bradford, published an interesting article about Austin’s demographics entitled, How Austin’s Rise Became a Tale of Two Cities. He looked at census data that shows that households with children are more concentrated in the suburban parts of the Austin area. The reason, he says, is simply that people can get larger, cheaper, and newer homes in surrounding suburbs than they can in the central part of Austin. I would like to add to his piece with a story from our own experience.

A family relocating to Austin from another city tells us that they can afford up to $500,000, and would like to live in one of Austin’s central neighborhoods. We show them homes in our older central areas with their eclectic mix of homes and tree lined streets. Slowly, they become aware of the degree of remodeling necessary to make these homes suitable for their needs - a daunting task for most folks.

For example, in one area (W of Lamar; E & N of Lake Austin; S of 2222) the average home between $300,000-500,000 may be described as follows:

Price - $415,975
Bedrooms - 3
Baths - 2
Built - 1952
Size - 1,583 sq feet
Garage - 0 to 2

Even though they are older, these neighborhoods are suburban in nature, built around the use of a car. Yet, often the garage has been taken in by prior owners for extra interior space. Perhaps a carport and some storage could be added, my clients say.

Next, we consider the house. What can be done to make the structure better fit their needs? Should they budget $85,000 to remodel and add on? This will bring them to the upper end of their range for a home. Will $85,000 be enough? No, it will not. Another 1,000 square feet would bring the size up to 2,583. At $200 per square foot, this will come to $200,000.

And what about the nearly sixty year old foundation, plumbing, wiring, duct work, and roof? What about the new code requirements since 1950? What about the amateur remodeling done in the 70’s and 80’s? What about that silver wallpaper, popcorn ceiling, and vinyl siding that made so much sense at the time? Remodeling is a tricky business that takes skill and experience. Is this relocating family up to the job? Or will they burn up a lot of money trying to renew an old structure, and find that their investment has burned up in the process?

Perhaps this house should be considered a tear down. Now we are up to $450,000 for a lot, including the demolition. The usual rule of thumb is to allow about 25 – 30% for the land out of the total budget. This calls for a $1.5 – $1.8 million total cost package.

Perhaps a suburban neighborhood around Austin would be a better fit for our relocating family at this time in their lives. There are plenty of choices – some suburban neighborhoods are quite close-in, others belong to a small satellite city. Their choice is to adapt to a much smaller home in central Austin than they would prefer, or to move on to greener pastures - a suburb on Austin’s perimeter.

We bought our first home in central Austin as college students years ago - the only young people on the block. Over the years we have witnessed the central neighborhoods of Austin evolve. A variety of people – from singles, to couples, to large family groups - moved in and improved or expanded their homes. Remodeling and revitalization was constant. Demand was steady and prices moved up.

Today, more than ever, the entry level budget for a home in central Austin is high. But, many people would like to do as we did years ago. They would like to buy a house with the idea of saving for a remodel and addition in the future. They get their foot in the door, and figure out how to improve the house later. It is a risk they are willing to take.

In 2006, moving to central Austin got a lot harder. The McMansion Ordinance added a new level of difficulty to an already expensive and risky process. The word McMansion conjures up a cheaply made extra-large house that that is devoid of architectural integrity. Ironically, this does not describe the mostly modern, craftsman, or prairie style homes built on expensive lots in central Austin in recent years.

Under the Ordinance, homes are restricted to either 40% of the lot size or 2,300 square feet. An expert is needed to figure out if your remodel plan complies with this law. Does your house plan stay within the virtual three-dimensional envelope? What about the side wall articulation (think of a 10’ chunk carved out of your dining room)? Can you squeeze bedrooms into an attic or basement that does not count as living area? And the carport – counted as living area if there is interior space above it, or not counted if free standing. Do you have the presentation skills to ask for a variance? How many billable hours will it take to figure out what you can legally do?

Austinites have lived with this ordinance for three years. Perhaps it is time to take a look at how these rules are working for homeowners. Are people happy with it, or are they giving up in frustration on remodeling projects? Have we weakened demand for central Austin neighborhoods? And, could this ordinance lead to some unintended consequences, as Chris Bradford points out?

Real Estate Blogs:

Green Building Project

Real Estate Market

Austin Energy Upgrades

How to Show Your Home

Website:

Austin Texas Real Estate

Austin Texas - An Interview with Joel Kotkin

2009-05-08T14:57:00.011-05:00

( Joel Kotkin is executive editor of NewGeography.com and is a presidential fellow in urban futures at Chapman University. He is author of The City: A Global History and is finishing a book on the American future. I appreciate his time for this interview!)

(Roselind) I was pleased to read your recent article about the best cities for job growth. You selected Austin as the #1 Big City for job growth. What put Austin at the top of the list?

(Joel) Austin has a very good combination of assets. You could call it blue state sophistication - universities, culture, music, high end knowledge workers - meets red state cost structure - that is, relatively cheap housing and low taxes. It's driven a lot of growth.

Perhaps more than even other Texas cities, Austin benefits by having huge publicly-subsidized employers - the University and state government. Ironically, these are more stable in Texas because there is still some private sector growth in the state, and costs are not totally out of control, as they are, say, in New York or California. Again, the bizarre blue state in a red state phenomenon works out to Austin's favor.

(Roselind) I read the article on your site about the four great growth waves in the U.S. and the cities they produced:

a. The original power spot was the New York, Washington DC and Boston areas.

b. The rise of agriculture and industry gave us Chicago, Detroit, Cleveland, and Pittsburg.

c. A westward migration after World War II developed Los Angeles, Seattle, Las Vegas and other cities.

d. Now the baton is being handed off mostly to Texas.

This is a huge fundamental change that I was not aware of. We are an artsy, laid back, university town. The mantra is "Keep Austin Weird." This was a misspelling of a "Keep Austin Wired" bumper sticker, but it seemed to resonate with Austinites. How do you think this wave of migration and prosperity will affect Austin?

(Joel) I think Austin has this self-image but its reality is changing. When I go there, I see it more and more like an elite version of Dallas. I remember Austin in early 1970s when it was a small college town. Now it's more like other big cities in Texas. The big difference is its shtick is different.

Houston's self-image is as a wide open "opportunity city". Dallas craves respect as a sophisticated business city. San Antonio relies on Texican charm. In the same way, "weird" is Austin's shtick. And it works as long as the Texan fundamentals remain in place.

But it is clear that growth and success will change the city.

Los Angeles became a very different place by 1990 than it was in 1975 when I got there. There were huge improvements in food, shopping, culture and intellectual climate but declines in the wide-open, sun-worshipping classic LA culture. You will see some trade-offs as well.

(Roselind) We have some interesting urban growth in Austin promoted by the city - part of an overall green incentive to be the greenest city in the nation. These include the new residential buildings downtown. There are also some "urban hubs" such as the Mueller area - the old airport converted to homes, offices, and retail.

Austin has always been a suburban town, since most its growth took place after World War II. Commercial buildings, or even a grocery store, were not allowed in a residential area. Even in our old neighborhoods, you go and come in your car.

What do you think of these areas? Are they happening in other parts of the country? They seem to be what people want. The trade off is that the lots and houses are very small compared to suburban houses.

(Joel) Urbanism has a future, but it will likely remain a niche. Nationally the urban condo market is in free fall, in many ways worse than suburbs. I would estimate 10-20 percent of people want to live in dense environments, perhaps more in places like Austin and less elsewhere. The real estate industry hyped itself into hysteria.

Some trends - like huge numbers of downshifting boomers moving downtown - were vastly over-exaggerated. The research shows very few moved, and many who did were largely speculating. Now there's a surplus of units that were built for the affluent and older people, and they are desired mainly by younger, less affluent people. In places like Austin, these places likely won't remain empty, but some developers will take a huge haircut.

The problem with the "green" and "new urbanist" approach is that it is top down. It does not jibe with job growth (overwhelmingly suburban), or market and price signals, and relies on government to force it onto the market. Better to improve existing suburbs with parks, local pedestrian-friendly districts, and let the city develop organically.

In other words, let well enough alone and focus on schools, the economy, and basic infrastructure. If there's going to be a huge shift to urban living, let the market drive it. Btw, every city is right now on a green kick. Nothing particularly unique about it.

Website:

Austin Texas Real Estate

Blogs:
Green Building Project
Real Estate Market
Austin Energy Upgrades

How to Show Your Home

Austin Real Estate Market: Where We Are Today

2009-04-20T19:40:00.006-05:00

It has been said that real estate markets are very local. This is clear to us as we work throughout Austin. On one day we may find ourselves dealing with multiple offers, or see clients lose their favorite choice because they did not act quickly enough. And, on another day in another part of town, we pull up a long list of homes with multiple price reductions to show a client. Even just within the Austin region, painting with a broad brush can hide the nuances in the marketplace.

So we looked at the market section by section. We checked the median price for each section and counted the number of foreclosures for sale. And, we computed the number of months of inventory for sale. The time needed to sell current inventory – at the sales rate of the previous 12 months – reveals the state of the underlying market.

The results are posted here: Austin Market: 2009-1st Quarter

Austin as a Whole:

For the Austin area as a whole, inventory stands at 5.9 months of supply. This medium level of inventory indicates that, overall, Austin has a balanced real estate market.

Austin in Parts:

We reviewed 54 different geographic sections in the Austin area:

8 had less than 4 months of inventory: Seller’s markets.
25 had 4 – 6 months of inventory: Balanced markets.
21 had over 7 months of inventory: Buyer’s markets.

Price Range:

It is clear from the data that the higher end price range has an excess of homes on the market. Areas with many homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods were favored by builders who built or remodeled homes for sale. We expect to see this inventory dropping during 2009 since new starts have virtually stopped.

Foreclosures:

On average, foreclosures are 3.7% of listings on the market – not a significant part of our market. However, some sections of Austin have higher foreclosure levels - up to about 10%. These include the Manor, Elgin, Bastrop and some Southeast areas. These areas, popular with first time homebuyers, were targeted by investors several years ago. At the same time, these neighborhoods do not have high inventory levels – indicating that the foreclosures are being absorbed quickly.

Conclusion:

In Austin we are not faced with serious depreciation, as a result of prices that were pushed to unsustainable levels. We are not faced with a serious foreclosure problem, generating its own downward spiral. And, we are not faced with widespread job loss. We are a city that people are moving to.

We do have high inventory and slower turn-around in some popular neighborhoods where builders were counting on faster absorption. This is true of all price ranges, and is especially noticeable in the higher end.

For buyers it is a great time to come into the market. Interest rates are the best in a lifetime. This is not the time to be waiting around for a better deal. It is the time to start shopping for a great place to live in Austin!

Austin Texas Real Estate Guide

Blogs:

Green Building Project

Real Estate Market

Austin Energy Upgrades
How to Show Your Home

Austin Texas - The Downtown Effect

2009-03-31T20:05:00.014-05:00

Steve Forbes: Don't you think the demise of the major metropolitan [area] will be stanched by the fact that these aren't just commercial capitals but cultural capitals as well?

Randy Frederick: While I'm a little too old to be attracted to it, downtown Austin continues to be a major draw for many people, especially the young and artsy types. There are several residential high-rise construction projects underway, because the demand is there--and I think it has more to do with being culturally attractive than anything else.

Since the University of Texas, the largest university in the U.S., is located [in] downtown Austin, there is a thriving night life, and many young people want to be part of that. In the nine years I've lived here, there has not really been a real estate boom, and as a result, the real estate decline has been far less severe than in many other parts of the country.
--------------------
(Roselind) Randy, I appreciated your comment about Austin on the Forbes.Com - Investing Panel. Austin is blooming as a cultural capital, and downtown plays a big part in the Austin experience.

I recall going to the closing sale of Scarborough’s Department Store downtown in 1981, the same year that Barton Creek Mall opened. That seemed to be a low point in the abandonment of downtown as a retail destination. City task forces and business groups have worked hard for years to re-vitalize Austin’s center. Music venues led the way, bringing young people downtown.

In 1999 we began to see the first residential construction. Today downtown Austin is a growing residential and entertainment district, and it gets better every day. I was just there for a little of SXSW. Music everywhere.

Tell me a little about what you have noticed during your nine years in Austin?

(Randy) I am not a real estate expert and having lived in only one other major metropolitan area (Indianapolis, IN). I have limited comparisons. That said, when I moved to Austin in 2000, I was struck by the number of people, especially well educated and affluent, who found living in the city to be desirable.

That trend has seemingly continued and even increased in the ensuing years. In the 30+ years I lived near the Indianapolis area, with only a few small exceptions, the suburbs were usually considered more desirable.

Metaphorically speaking, the center of a city is its heart and without a healthy heart, the body can not be healthy. There are many things I like about Austin (Music, Climate, Culture) but a vibrant and desirable downtown area is key to all of them.

(Roselind) I think that is so true – a vibrant downtown is crucial to having a city that attracts people. It will be interesting to see this continue to develop. In the book, The City – A Global History, by Joel Kotkin, he talks about the need to bring more services into urban areas so that people don’t move to the suburbs when they have children. Things like good schools. Then the area will not turn over its population as rapidly.

You made a good point about having the University almost downtown. I had not realized how important that is. It supplies a lot of people for music venues, cafes, retail and living quarters.

On another subject - you mentioned that we did not experience a real estate boom in Austin. Therefore the decline in real estate has not been as severe as in other parts of the country. Comparatively, we are in great shape. Two recent reports:

1) Austin was rated the second healthiest housing market for 2009, in a study by Builder Magazine. They said that the healthiest cities were great places to live and often had major universities. And they did not have the run up in prices during the boom.

2) Forbes rated Austin #2 in their “Top Ten Cities Where People are Relocating.” The Forbes article goes on to say that the top cities do not rely heavily on one industry.

In my experience, sales are taking longer now than they did a couple of years ago. And, there are some pockets where the supply has exceeded demand. Some of these are popular neighborhoods where builders expected strong growth. Or they are areas where modest homes were oversold to investors or sub-prime borrowers.

Yet, in spite of all the good news about Austin, people still ask if perhaps a more severe downtown is coming our way. What do you think? Is the other shoe about to drop?

(Randy) As I mentioned before I am not a housing market expert, but I do follow trends in economic reports such as housing starts, mortgage rates and Case-Shiller pricing reports. I also follow the earnings reports and stock prices of all the major builders.

While I wouldn’t describe it as “another shoe to drop”, I would say that from a national perspective, there is little sign that the housing market has bottomed yet. While there has been a slight uptick in existing sales, that is likely more the result of foreclosures, speculators and bottom fishers, than an actual pickup in demand. That said, any activity that effectively removes excess inventory is at least somewhat positive.

As difficult as recessions are, they are a necessary part of the business cycle because they re-adjust runaway inflation, which is exactly what we had in the housing market. In the chart above, the navy line shows how the price of housing was tracking quite nicely with inflation until about the beginning of 2001.

The yellow line shows roughly where housing prices probably would have been had the bubble not occurred, while the green line shows how far out of line we went and how much we’ve corrected. More importantly, the teal line shows how much correction is still needed.

(Roselind) I have seen this index, and it is quite revealing of the problem. Since Case-Shiller does not track Austin, we don’t have a graph for this area. But, with modest levels of appreciation – 4%-5% - most years, I think our home prices would come a lot closer to the base line.

As you said, Austin is one of several areas of the country that did not experience a big run up in prices from 2001 to 2007. We were slowed down by the Dot.com bust of 2001, and were still recovering from that through 2004. During that time builders pulled back on their programs, and we worked our way through an overload in high end inventory. Looking back, that probably kept us from getting on the price roller coaster. In 2008, we had a few percentage points of appreciation overall - an indication of the stability of our market.

Your perspective on the national market is one that we need to keep in mind. While we may not have a lot of deflation to handle here in Austin, we need for people to be able to sell in other areas, for credit to be available, and for confidence to be up. Until that happens we are going to operate with less demand than we were used to in recent years. And, that is not all bad. For buyers it is a good thing. They get a more balanced market with great interest rates right now.

Thank you very much for sharing your perspective! (Randy Frederick is Director of Trading and Derivatives – Charles SCHWAB)

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Site Selection: Green Building at Ground Level

2009-03-18T22:03:00.006-05:00

What makes a building green?

Green features cover a lot of territory – from site selection, to building design, to materials, to lifestyle and behavior. In this series, we will look at the many green decisions that may be made during a building or remodeling process. We will start at ground level, with site selection.

If you are choosing a lot, or looking for an existing house to remodel, here are some greener choices:

1) Sites that encourage walking instead of driving:

Austin, like most cities that grew up during the twentieth century, is suburban in design. Cars are required to get around, even in older neighborhoods. Zoning laws did not allow a mix of commercial and residential uses. Very few homes have an easy walk to a grocery store. The suburban style is now being reconsidered. Downtown Austin is a good example of the new urban ethic. Here people live, work and shop on the same street. And, the new Mueller neighborhood overturns many of the long established rules of neighborhood planning. Mixed use has a growing acceptance in Austin.

2) Sites in older areas:

These lots already have utilities and roads. They take advantage of existing infrastructure. Usually older neighborhoods are closer to job centers, schools, public transit, and shopping. So, less time and gas are required to get around. They offer convenience and a good quality of life.

3) Sites that are small:

Small lots increase density and concentrate the use of roads and services. They call for smaller homes, which cost less to build and operate. Small sites present some challenges, but also offer the opportunity for innovative design.

Green Star Rating System:

The Austin Green Building Program has a grading system for new homes or remodels that want to achieve a Green Star Rating. (Total points needed for a Green Star Home)

Here are the points for items that relate to choosing a site.

5 Points: 1.01 GBP Green by Design workshop attended by homeowner, designer, or builder

4 Points: 1.02 Lot size is less than 5,750 sq. ft.

4 Points: 1.03 Street, electricity, water and wastewater have been in place for a minimum of 25 years

2 Points: 1.04 Public transit stop is within a 1/4 mile radius

2 Points: 1.05 Grocery store is within a 1/2 mile radius

2 Points: 1.06 Public hike-and-bike trail, green belt, or park is within a 1/2 mile radius

Green building is a process that is being defined by all who care to participate and explore the possibilities.

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String Lights: An Old Idea Made New

2009-02-27T17:08:00.006-06:00

Low cost strings of lights have been around for a long time. They are everywhere during the holidays. And, they illuminate open-air venues, like tent parties and restaurant patios. When we considered the lighting for our Taylor Road house, strings of lights came to mind for the large screened porch. They are a good fit with the informal, industrial style of the house. We had used low voltage cable lights inside the house, but these are not suitable for outdoors, and besides, they cost ten times as much.

String lights are simple to install: In the wiring stage, three outlets were placed high on the wall at evenly spaced intervals across the room. The outlets were wired to a switch, so the lights could be turned on easily. At finishing stage, eye screws were screwed into the walls. At one end, the eye screw was next to an outlet, so that the light string could be plugged in. Three strands of medium gage wire were attached to the eye screws and pulled tight across the room.

We first tried a package of little mini lights on one of the wires, but did not like the twisted green electric wire that came with lights. It was too noticeable. So we took those back and got three boxes of medium bulb Christmas lights. These came with simpler electric wire and larger bulbs. They were called C-7’s. You can get C-9’s if you want bigger bulbs. There are lots of bulb shapes and sizes to choose from, all the way up to regular sized bulbs.

Each bulb has a little clip so that it can be hung on the wire. We spaced them out, and then pulled the strand tight. Fortunately, the light strand could be cut off, so there was not excess at the end. When the strand is cut, you will need some black electrician’s tape to seal the end.

When the light strings were turned on we had a nice surprise. The lighting was beautifully diffused throughout the room. It was so soft and diffused that it seemed like moonlight. Strings of small lights have a special ambience – they remind us of parties and festive times. It was fun to re-interpret this familiar lighting style for everyday use.

Postscript: Apartment Therapy has a great post on string lights with info on where to get them: http://austintexasrealestateblog.blogspot.com/2009/02/string-lights-old-idea-made-new.html

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Austin Energy Audits - Will Buyers Expect Greener Homes

2009-02-19T16:30:00.004-06:00

The city of Austin is going green. A new energy ordinance will take effect in 2009 that will require homeowners to have an energy efficiency audit done prior to selling their home.

In Austin, energy performance has a lot to do with how efficiently the central AC and heating system works. In our hot climate we are more concerned about cooling than heating, but both are used during our hot and cold seasons. The new law aims to reduce energy usage by making AC systems more efficient. This means:

Reducing the loss of conditioned air through cracks in doorways and windows.

Finding leaks and closing gaps in AC ducts. (Ducts often have 10% - 30% leakage!)

Improving the level of insulation in the attic to retain conditioned air.

Keeping the hot sun out with solar screens on windows.

After some controversy, the law stopped short of making energy upgrades mandatory. In today’s market, no one wants to make it harder or more costly to sell a house. So, the law was pared back to require sellers of homes to have an energy audit, and disclose the results to potential buyers.

But will buyers demand that the home they buy pass muster in terms of energy efficiency? The market will have to sort this out. But, over time they probably will. Sellers will anticipate this by taking steps to correct areas of wasteful energy loss in their home. Most sellers would rather not have a negative report to show prospective buyers. They will want to have a clean bill of health. And the items required for testing are kind of fundamental, we have to admit.

In fact, they are so fundamental that they have been long ignored. These are not the green features that are visually appealing or ego satisfying. We don’t see them featured in Dwell Magazine. We are not talking about wind turbines, or rainwater catchment, or solar panels, or Icestone counters. We are talking about things that most people would rather not think about. Like caulk and duct mastic. And, unglamorous dark screens and dusty old attic insulation. These are not the upgrades that cause buyers to say, “I love it.”

So they haven’t been getting a lot of attention. The new energy audit law is going change all that. It will bring these behind-the-scenes basics into the limelight. Old houses will meet new tech. It will give homeowners a roadmap to improve energy efficiency. That will mean lower utility bills. And fewer carbon-spewing power plants. And, in the long run, a greener Austin.

Austin Energy Ordinance

Austin Energy Audits

Austin's Energy Ordinance - What You Need to Know

2009-02-13T14:29:00.005-06:00

Austin's new Energy Audit and Disclosure Ordinance will become law in June of 2009. With this new law in place, home sellers must have the house checked for energy efficiency, and disclose the status to potential buyers. It applies to homes in the city of Austin that are over ten years old; and that are served by Austin Energy. There are two paths you can take to meet the requirements of the ordinance.

Audit Plan

Homes must be audited for energy efficiency prior to being sold. Under the law you do not have to do the repairs noted in the audit. You just have to provide a copy of the audit to the buyer. If the house needs major work, you could apply for an exception from the audit requirement.

Although repairs are not required, the de facto result is that home sellers will be pressured to make the upgrades noted on the report. Most sellers would prefer not to offer a negative report on their home to prospective buyers. In any market, a loss of value is not something to be taken lightly. So, in many cases, it makes sense to complete the repairs before putting a home on the market.

The energy audit will check these four items:

Duct pressure test on the AC ducts to check for leaks.

R value of the insulation in the attic.

Weather-stripping on doors.

Shade screens or window film on the south, east and west side.

The Austin Energy Website lists their registered contractors who do energy audits. They are called Energy Raters. The cost of the audit will vary. I have heard quotes of $300 for 2,000 square feet, with cost/size increments. The audit report must be attached to the Seller’s Disclosure when the home is sold, and is good for ten years.

If you elect to have repairs done, the most efficient place to go is Austin Energy’s list of Home Performance contractors. These are city registered contractors who do energy related repairs. When the work is complete, an inspector from Austin Energy will inspect the work and clear any building permits that were obtained.

At this time, paperwork for rebates will be submitted to the city by the contractor. About 20% of the cost of some upgrades can be rebated. Texas Gas Service offers some additional rebates. And, you may be entitled to some federal tax credits. Save your receipts and check with your accountant on this.

Energy Star Plan

Homes that have participated in the Home Performance with Energy Star Certificate program within the last ten years are exempt from the audit requirement. This program is an alternate way to comply with the energy ordinance. Low interest loans are available for participants in this program.

To participate, call a Home Performance contractor for an energy analysis. Some of these companies offer a free analysis in conjunction with a bid for the work. An inspector from Austin Energy will review the analysis and the bids for proposed work.

The inspection will cover the following:

Central air conditioning and heating or heat pump

Air Duct sealing or replacement

R value of the insulation in the attic.

Shade screens or window film on the south, east and west side

To receive an Energy Star Certificate of Completion you must be in compliance with at least three of the above items; (or) you must receive a rebate of at least $500 from Austin Energy.

When the work is complete, an inspector from Austin Energy will inspect the work and clear any permits. Rebates will be submitted by the contractor. A copy of your certificate of completion should be attached to your seller’s disclosure. It is good for ten years.

Summary

The Audit plan allows you to simply disclose the results of an audit. Or, you may choose to correct some, or all, of the repairs.

The Energy Star plan is an established program that predates the Energy Audit requirement. You may get a free energy analysis by a participating contractor who will also bid for the repairs. To get a certificate of completion you have to comply with at least three of the listed items.

At this time, the energy audit disclosure applies only to Austin Energy customers within the city of Austin. However, it is likely that energy inspections will become a part of the sale process throughout the region. The outcome will be the re-weatherizing of older structures to make them more efficient and less costly to live in. And, that is a good thing.

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Screened Porches - A Greener Way to Live

2009-02-09T20:24:00.008-06:00

Screened porches are a perfect fit in a green building project. They provide an outdoor room that is in touch with the natural world, and at the same time, safe and sheltered.

In our recent building project we incorporated two screened porches. The central porch is truly the heart and soul of this home. Both the entrance hall and the living area open to the porch in a big way. The space can flow together for large gatherings. On the porch there is room for a dining table, plus a seating area around the fireplace. It is an inviting place to eat outdoors, entertain, or sit by the fire on cold days. Beyond the porch, an open patio transitions to ground level.

The vaulted ceiling raises a 12 foot screened wall to a view of sky and distant hills. Board and batten siding, exposed metal roof, cedar trim, and concrete floor combine interior and exterior materials. On the lower screen panels we added galvanized wire mesh for extra strength. The wire mesh panels are also incorporated into the railing for the outside patio.

Old Texas homes often included a screened sleeping porch. This was back before air conditioning. The porch brought in cool night air and kept out mosquitoes. High ceilings allowed heat to ventilate out. With this in mind we built a sleeping porch off the master bedroom. The lifted roof allows air to circulate and cool the space – important in our hot climate. There is a stone wall on the front for privacy, with screen walls open to the view on the back.

Double glass doors extend the master bedroom to the porch, and expand the bedroom space. Interior and exterior colors and materials relate to each other - limestone walls, cedar trim and concrete floors. The sleeping porch offers a connection to nature outside the heated and cooled envelope of the house.

The appeal of screened porches has endured for over a century. They are romantic and historic. Flapping screen doors recall a simpler time when interiors were not as tightly sealed. Today, screened porches are in a period of re-discovery. They are an idea whose time has come again. They are a greener way to live, and today, we need them more than ever.

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Austin Real Estate - The Status Quo

2009-02-01T14:55:00.004-06:00

The Case-Shiller Index of housing prices uses the closest comparable sale – the sale and resale of the same house – to track changes in real estate values. It has collected data on repeat sales for the past eight years. Take a look at this interactive graph of home values in the 20 cities monitored by the index. It is clear that there is a lot of variation in the magnitude of rise and fall of prices in these cities.

In Austin, we have held steady, with a 2% increase in overall median price in 2008, compared with 2007. Austin is not one of the cities monitored by the Case-Shiller Index. If we were monitored, it would be clear that we did not have the run up in prices, followed by a mirrored decline. We did not have the gain, and we don’t have the severe pain that is being felt in many other cities.

In Austin, most builders have stopped building homes. The total number of sales in 2008 decreased by about 20% compared with the number of sales in 2007. In addition to builders, sellers are also doing their part to reduce inventory. Many homeowners have pulled homes off the market. There are significant variations in the amount of inventory available in the neighborhoods of Austin. Each neighborhood should be evaluated in its own right.

It is said that real estate markets are local. This is evident at the neighborhood level in the current real estate market in Austin. Although the median price has held steady, many homes on the market have undergone price reductions. Re-pricing is directly related to the number of properties for sale in the neighborhood in a similar price range. The degree of re-pricing varies widely from one neighborhood to another.

In certain neighborhoods the inventory exceeds demand. And, in certain price ranges the inventory exceeds demand. In these cases, there must be some inventory reduction in order to bring supply and demand back to balance. With a steady influx of new buyers coming into Austin, and with fewer homes coming on the market, that balance will be reached over the next twelve months. When that tipping point is reached, we will likely begin a period of shortage of inventory.

On the other hand, there are many areas of town where inventory has always been tight. In these areas, the recent decline in inventory has brought levels very low. For example, the Canyon Vista Middle School area has only 3.8 months of supply in the $300,000-600,000 range. Here we have a seller’s market. Of course, it seems odd to say, “Seller’s Market,” but this is the case here.

Since January, we have seen a rise in demand for homes by buyers. The combination of low rates and recent price reductions make buying a home very attractive right now. Real estate is still an attractive alternative to other investments. Buyers do not want to let this opportunity slip by - because it will not last long.

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Limestone: The Best Thing Since Sliced Bread

2009-01-26T20:11:00.006-06:00

Concrete front walks are fine for some houses. They give a clean finished look. But, we had built a contemporary farmhouse on a large lot, left mostly in its natural state. When we were ready to put in the front walk the last thing we wanted was a long ramp of concrete. Concrete takes dominion over the ground and breaks with the natural landscape. We wanted a more organic walk. There was a long distance to cover, and the ground kind of undulates. A concrete walk is not ideal for level changes – unless you want to have steps. This walk needed to be some sort of stepping stones.

We considered buying pre-made concrete pads. But they were too small for the job and would look wimpy. We considered using flat stones for the walk. And, we considered pouring rectangles of concrete, formed in place. I had read about adding crushed granite to the concrete mix for texture. That would have been an interesting project to try.

Stone steps seemed right, but I thought this might be an expensive choice. The stone supplier for the house was A. J. Brauer in Jarrell, Texas. So, I called Mr. Brauer (512-746-5792) and asked if he had some flat limestone pieces that we could use. He said they had limestone rectangles, about two by four feet in size. They were smooth on one side and rough on the other side. I could not understand why they would be this way, so Jim and I drove out to Jarrell to take a look at them.

We found that they were the outer edges that are sliced off large blocks of stone - kind of like the ends of a loaf of bread. This is done to trim the blocks after they are taken out of the ground. The clean blocks are then sliced to make material for the outsides of buildings, floors, fireplaces, and other things.

Limestone is a beautiful light colored stone that is quarried in the Austin area. It was formed from deposits of shells millions of years ago. You can sometimes find shell fossils in the stone.

These pieces are scrap material, so they are relatively inexpensive. And they make a great front walk. The total cost for the stones was about $600, including delivery. We got enough for a walk and patio.

Before putting them in place, I had a consultation meeting with Jim David of David/Pease Design, a great landscape designer in Austin. I showed him the path where I planed to lay out the walk. He said that it was going to look like a straight line that turned out crooked. When he drew a bold curve on the survey, I knew he had saved me from a big mistake.

I told him that we were going to dig the ground down a bit and set in the stones. He waved away that idea. Just set them on the ground. The weight will settle them in. We placed them with the smooth side down.

We used a hose to lay out the curve that Mr. David has suggested. Let me tell you, these stones are heavy - about 200 lbs. apiece. It took two strong men to lift and put them in place. We used a refrigerator dolly to move them off the pallet to their place in the walk.

The stones varied some in length and width. Jim wanted the walk and patio to be orderly, so he kept measuring the top stone from each of the six palettes to pick the best one. He wanted similar sized stones next to each other. We made a landing at the road with four stones across and two deep. Then the walkway is one stone laid across – so it is four feet wide.

After they were placed, we added a little dirt between them and some buffalo grass seed. The effect is a wonderful natural look. Grass grows around them and blends them in with the terrain. It is a good fit with the native Austin look. As Lady Bird Johnson once said, “I like it when the land speaks its own language in its own regional accent.”

Austin Texas Real Estate Guide

How to Show Your Home For Sale - Should You Stick Around?

2009-01-19T19:58:00.004-06:00

This is a blog series on preparing for a successful showing of your home for sale. In a slower real estate market, sellers cannot afford to ignore any part of the marketing process. Price, preparation, and presentation must be compelling in order to attract a buyer.

The price must be set realistically. Preparation should be complete - with paint touched up; space de-cluttered; floors clean or updated; and glaring repairs handled. And, presentation should be meticulous - with drapes open; lights on; interior immaculate; and lawn mowed.

Now you are ready to show your home. This is the final step in winning the heart of a buyer. A call for a showing is an expression of interest in your home. The potential buyers are clearly interested in your neighborhood, and have most likely seen your home on line. They are willing to invest their time for a visit. It is worth the effort to make each showing one that will be remembered.

Should You Stick Around?

Generally, it is not a good idea to be present for the showing. Remember that this is not a social visit. Most buyers will feel that they are intruding on your privacy if you are in the house. They may shorten the time spent in your home. Or, they may not be able to discuss your home as freely as they might have. If it is difficult to leave, you may sit outside or take a short walk.

Sometimes sellers try to offer certain information, and they inadvertently turn the buyer off. It is best not to make assumptions about what the buyer wants. Keep in mind that buyers are there to make a big decision. They need some time to experience your home on several levels. If it passes the first test, there will be time to communicate how many water heaters you have and other facts about the house. I recall one showing in which the sellers actually grilled the buyer on his reaction to every room, and then argued about it. It was a relief to leave.

Roselind Hejl’s Austin Texas Real Estate Guide

Did you Buy a Home in 2008?

2009-01-09T20:16:00.005-06:00

If so, then it is time to file your homestead exemption form in Texas. To be eligible for the Homestead Exemption for 2009, you must have lived in your home on January 1 of 2009. You should receive an application in the mail from the Tax Appraisal District. If you do not receive one, you may get it online (links are below).

There are two reasons to establish your exemption:
(1) Get a reduction in property tax.
(2) Start the "annual 10% limit" on property taxes increases that applies to owner occupied homes.

So, it is important to send in your application form. In May, when your "Notice of Appraised Value" arrives, make sure that "homestead" is shown on the form. If you have any questions please feel free to call me to discuss it. I will be happy to double check your record.

Disregard any letters asking for money to file for a homestead. There is no cost to file for a tax exemption of any kind. It only needs to be done one time, and will stay on your property as long as you own it. There are other tax exemptions that one could apply for such as Over 65, Disabled Veteran, etc.

All my best to you in 2009! If you know someone who needs to find a new home in Austin, I would love for you to give them my name and website.

Links to Appraisal Districts:

Travis County

Williamson County

Hays County

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Subprime Loans: Playing Against the House

2008-12-26T10:48:00.003-06:00

In the old days, before about 1998, subprime mortgages were an alternative for borrowers who did not fit normal guidelines. Maybe they just started a new business, or had some past credit problems. Borrowers paid a higher interest rate or put more cash down to compensate the lender for taking a higher risk. The funds for these loans came from private investors who accepted higher risk for higher returns.

In recent years a new type of subprime mortgage was created. This loan was designed to help a lot more people buy houses, and indeed it did. It became so popular that, from 2005-2007, this subprime loan accounted for one-third of all mortgage loans issued. Borrowers often had qualification issues, such as: debt repayment problems; no past credit; low FICO scores; minimal job history; previous bankruptcy; poor documentation; or no cash for down payment.

Typically, these loans began with a low rate for the first two or three years. Often the payment was set so low that the loan went up each month, absorbing the unpaid interest. Then a very high rate would kick in. How was it possible to make these loans? What made them work? The strategy was this: Rather than rely on the borrower’s credit worthiness, they relied on rapid house appreciation followed by re-financing. This was the new feature that made these loans different from prime or old subprime loans.

The new subprime loan often had a pre-payment penalty that prevented borrowers from paying them off early. The low initial rate was not profitable, so the loan needed to go into its second phase to become profitable to the lender. Squeezed between a pre-payment penalty and an impending high interest rate, the borrower had no choice but to re-finance after two or three years. If payments were made on time, and if their financial condition improved, and if the house went up in value, then the borrower might qualify for a prime loan.

However, most borrowers did not get a prime loan at refinance time. They got a new subprime loan, extending the need to re-finance. Of course, re-finance fees were charged. The lender had a lot of control over the borrower at refinance time. For these borrowers, re-financing was not a choice made at their discretion, as it is with prime loans. It was a necessary part of the subprime loan itself. You could say that the new subprime loan was, in effect, an agreement to allow mortgage lenders to play the real estate market – betting all their chips on appreciation.

What about the borrower? Borrowers looked around and saw lots of folks buying houses using subprime loans. Home values were on the rise from about 1998 to 2006. In many areas homeowners saw 25 – 50% appreciation in their home values. So it seemed to be a safe bet. Instead, it was, effectively, a large pyramid scheme – the more people who participated; the more the early players were rewarded. The cycle was self perpetuating. Demand for homes raised prices; higher prices attracted more people for easy loans.

Subprime loans were financed through complex securitization structures, with multiple levels of risk spread over many parties. And, investors could buy insurance protection, shifting their risk to other entities. The layers of complexity were astounding. The only people who seemed to understand the structures were the investment bankers who created them.

Investors did not know very much about what they were buying. They trusted the bankers and rating agencies to protect them. And, no one at any level seemed to know how dependent subprime loans were on market appreciation. They did not understand the need to refinance under better market conditions, implicit in the loan. This need for market appreciation made the investment a very high risk – in fact, doomed to failure.

When the problem began to be perceived by investors in mortgage securities, the placement and ownership of risk was very hard to figure out. There was confusion, and then the worst possible reaction - panic. Investments in mortgage securities ended; investment banks closed; and related financial institutions were hurt. The panic spread, and people pulled their money out of other markets.

Real estate roulette was possible because the borrowers who received money, and the investors who provided money, were not clear about the high level of their risk. Had they understood the almost certain downside, they might have left the table before the game got out of hand.

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Austin Real Estate - Looking Ahead

2008-12-17T08:29:00.006-06:00

I recently attended a round table discussion with economist, Angelos Angelou, on the Austin real estate market. Here is a summary of our conversation:

In Austin, we have one of the most stable real estate markets in the country. Nevertheless, Austin is not immune to the turmoil in the housing, financial, and equity markets that is occurring throughout the country. “We have been impacted here as well from the repercussions of the credit boom that made it so easy to buy homes, cars, and develop real estate. The negative impacts on our economy should last through most of 2009.”

Right now in Austin we know that home sales are sluggish. “There is about a 10% – 30% decline in sales, depending on the area and price range. In times like these buyers tend to hold back, hoping for better buys in the coming months. This slows the market even more. On the positive side, there will be some pent up demand when the bottom is perceived to be reached.”

“As the national economy moves into a recession, job growth and retail sales will decline. This will further slow the national housing recovery. In Austin, the economic problems have been limited to the tightening of credit markets, and have not yet translated into job losses in the wider economy. To be sure, most businesses, are feeling the pinch of reduced sales”.

Historically, in difficult economic times, people tend to move to places where the economy is healthy and there are jobs. This will help Austin weather the downturn. The positive perception of Austin as a great place to live attracts newcomers. Newcomers with good jobs, in turn, keep the housing market moving. Movement in home sales keeps prices stable and modestly appreciating.

“Areas like Austin tend to recover quickly, no matter what the challenge might be. Folks do not need to be recruited to move to Austin. They already want to come here. Very few cities have this kind of mystique. The Austin brand is strong. The University of Texas and state government are mainstays of our economy. We have a youthful workforce, with 36% in the 25 – 44 age range. This is the demographic that high tech companies want.”

However, Austin is evolving as a high tech center. In 2000, there were about 120,000people employed in 1,600 high tech companies in the Austin area. In 2008, there are about 85,000 people working for about 1,200 high tech companies. We all are aware that many high tech jobs (manufacturing, support, call centers, etc.) have moved to Asia and other countries. In Austin, we are moving toward high tech start ups and research & development, rather than high tech manufacturing.

In today’s difficult times it is more important that ever that our city leadership re-focus its efforts to attract companies that provide jobs in Austin. The needs of engineering companies, versus manufacturing companies, versus research and development companies are very different. There should be a strong, unified public policy focused on recruitment and retention of companies that provide quality jobs.

“In the 1980’s our city leaders joined with the University of Texas and the Chamber, and went after high tech jobs. They put “Sillicon Hills” on the map. Today we need that kind of concerted effort and attention. We hear of some successes, but there have been many missed opportunities to recruit quality companies to Austin. We don’t hear of the companies that quietly selected another city. Under the leadership of the Chamber, economic development must be supported with all of our enthusiasm and tenacity, and with one voice, to create the high paying jobs and capital investment that we need to support our quality of life.”

Mr. Angelou is adamant about two things: The first is the need to promote economic development with a focus on recruiting new and impactful companies. And the second is the need to improve on the rate of companies that select Austin, after considering Austin. This kind of momentum and leadership is required to create the jobs that, ultimately, sustain our housing market.

Mr. Angelou will give an overview of the Austin economy and offer projections at the annual Economic Forecast event at the Convention Center on Jan. 15, 2009, from 7:00 –9:45 am.

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Austin Job Growth Stays Positive

2008-12-06T19:16:00.006-06:00

Austin’s job growth continues to be positive, in spite of the national trend. The cities below are among the largest metro areas in the country. Austin’s rate of growth places it #5 in the country. That is a good place to be.

Fastest Growing Metro Areas

Sept. 2007 – Sept 2008 - Increase in non farm payroll
Austin Chamber of Commerce Data

1. Virginia Beach MSA 2.2%
2. Houston MSA 2.2%
3. San Antonio MSA 2.1%
4. Seattle MDiv 2.0%
5. Austin MSA 1.9%
6. Dallas MDiv 1.9%
7. Fort Worth MDiv 1.7%
8. Charlotte MSA 1.6%
9. Washington MDiv 1.5%
10. Boston MDiv 1.1%

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Green Building - A Leuders Stone Shower

2008-11-29T17:24:00.025-06:00

The house we are building is a simple farmhouse style. The appeal is in the views, open space and honest use of materials. Decorative touches can come later, from furnishings, accessories and things people have. If the construction elements are too decorative, then personal items that are added later will overload space, we feel.

For this reason, we prefer to let bath tile be a background element, rather than a decorative feature. No contrasting backsplashes, colored stripes, carved tiles or other accents that draw attention will be used.

Here are the tile choices that were considered:

White subway tile: Subway tile has been popular in recent years, and we see it a lot. The old vintage version of this tile is a 3 x 6 inch, flat tile, with square cut edges. Today’s version is thin, with rounded edges, and is often a little pillowed. Somehow the modern version looks a lot like the basic 4 x 4 bath tile that is commonly used, but with a different shape.

Colorful ceramic tile: There are some beautiful ceramic tiles to choose from. We visited Architerra, in the Penn Field Center, several times and loved a lot of their tiles. Some of their simple 4 x 4 bath tiles had great lush color, and they would have been fun to use.

Travertine: We have used Travertine several times in bathrooms, and were satisfied with the choice. It is durable, and inexpensive. The problem with Travertine is that we are tired of it, and it is a bit too busy for the room.

Slate: We have used slate in the past, and liked the earthy, rustic look. However, this time it was too strong for the room size and style that we wanted.

Leuders Limestone: This is a grey-tan tile that is cut from Leuders stone, a dense limestone quarried in north Texas. Leuders stone is often used as an exterior material. It is indigenous to our area, and a good fit with the Texas farmhouse style.

We settled on Leuders Limestone as the right tile for this house. It seemed to pick up and continue the natural grey concrete floor. The walls are off white (Sherwin Williams – Raime), and trim is light sage green (Sherwin Williams - Nacre). The color palette is stone grey, tan and green.

The Leuders tile was purchased at Materials Marketing in 16 x 16 pieces. They cost about $7.00 per sq.ft. Our tile man cut them to make 8 x 16 and 4 x 16 pieces. These were alternated to create a pattern.

We used Leuders in tile form, set by our tile contractor. However, it is worth noting that an Austin fabricator,Berthold Haas , makes beautiful slab countertops, fireplaces, and other architectural elements from Leuders limestone.

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Austin - A Solid Real Estate Market

2008-11-28T13:16:00.004-06:00

During the last few years, a lot of people saw their friends and neighbors moving into home ownership or becoming real estate investors. They saw real estate values rising and became aware of the endless supply of low-interest credit. So, to a great many people, it seemed to be the right time to get in.

Unfortunately, a lot of mortgages were set at teaser rates, with the need to refinance later in order to avoid higher rates. Home buyers did not appreciate the risk of making a highly leveraged bet on short-term market gains. The only downside that home buyers could imagine was a leveling off of home prices – not a fall in prices.

Homebuyers did not realize how many other people were making similar bets on increases in housing values. And, they did not appreciate the destabilizing effect that foreclosures could have on home prices.

When foreclosures began to happen, they undermined many real estate markets across the country. The widespread fall in home values has mushroomed into a crisis for our financial system, and economy as a whole.

How is the Austin market weathering this crisis?

In Austin we are not entirely immune from the turmoil in the financial and credit markets. Demand for homes has slowed. When people can’t sell in other states, they can’t buy in Austin. We have some areas of oversupply of homes and some foreclosures - mostly in suburban areas that were targeted by investors. But on the whole, Austin has escaped the devastating effect of foreclosures, excess inventory, and falling prices that many cities are experiencing.

The important thing is that values in Austin did not rise exceptionally during the last few years and are not falling precipitously. Housing Predictor, a market research company, has identified 10 markets where the strong regional economies have the best potential for increased prosperity. These are listed below:

Top cities, with the percentage of price appreciation in 2008:

1. Biloxi, Miss. - 4.9 percent
2. Salem, Ore. - 4.7 percent
3. Bismarck, N.D. - 4.6 percent
4. Spokane, Wash. - 4.4 percent
5. Yakima, Wash. - 4.1 percent
6. Austin, Texas - 4.0 percent
7. Grand Junction, Colo. - 4.0 percent
8. Fargo, N.D. - 4.0 percent
9. Mobile, Ala. - 3.9 percent
10. Albuquerque, N.M. - 3.5 percent

Source: Housing Predictor (11/15/08)
Link to Texas page

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How to Show Your Home For Sale - Is Your Home Safe?

2008-11-19T18:39:00.001-06:00

This is a blog series on preparing for a successful showing of your home for sale. In a slower real estate market, sellers cannot afford to ignore any part of the marketing process. Price, preparation, and presentation must be compelling in order to attract a buyer.

The price must be set realistically. Preparation should be complete - with paint touched up; space de-cluttered; floors clean or updated; and glaring repairs handled. And, presentation should be meticulous - with drapes open; lights on; interior immaculate; and lawn mowed.

Now you are ready to show your home. This is the final step in winning the heart of a buyer. A call for a showing is an expression of interest in your home. The potential buyers are clearly interested in your neighborhood, and have most likely seen your home on line. They are willing to invest their time for a visit. It is worth the effort to make each showing one that will be remembered.

Is Your Home Safe for Visitors?

Remember that showing your home is going to interfere with your day to day life. You will need to prepare for some inconvenience and intrusion into your privacy. Consider the safety of your visitors. There may be seniors as well as small children walking around your home.

Is there a statue or tall lamp that could easily fall if touched? Are there wires at ground level that could trip someone? Are there rugs that tend to slide? Are stair and upper level railings safe for small children? (Or, could a child fall through?) Could a visitor be bitten by a bird or other animal? Are the stairs free of small toys? Are traffic patterns open between rooms? Are there rotten deck boards that could give way?

Also consider your own security and privacy. Put away valuable possessions. Do not leave money, guns, jewelry, x rated magazines or any personal items in public view. Do not leave breakable objects where they could be accidentally bumped. Move your medicines to a secure location. Do not leave bleach or poisons in reach of children. Do not leave candles burning when you leave the house.

Having your home on the market will most certainly involve some changes in your lifestyle. Your home will be a product on the market, open for viewing. Consider the safety of visitors who will be in your home, and safeguard your own possessions. Take precautions during the showing process to make your home safe for visitors.

Roselind Hejl’s Austin Texas Real Estate Guide

Austin Energy Audits - Kathleen's Story

2008-11-08T17:58:00.002-06:00

A valued client of mine was kind enough to answer some questions about the AC upgrades to her home. This process may be mandated by the city of Austin in the future. I am curious how the energy audit has been working for people. Feel free to send an email with your story.

What motivated you to reduce energy consumption?
When I bought my home my Realtor gave me the phone number for the City of Austin thermostat conversion. This is a free service that the City of Austin provides. The interesting thing about these thermostats is that the City can cycle them off remotely for 15 minutes during very high demand periods, which helps to avoid brown-outs. This remote-cycling really has no effect on the customer. You really don't even notice it unless you are looking at thermostat and see the red light on. The temperature in your house really doesn't change.

To sign up for the Power Partner Free Thermostat Program visit: www.austin.energy.com, or call (877) 549- 2774.

Later, I purchased an energy efficient washer, dryer, and refrigerator. I did this for water conservation and lower electric bills. I try to be a minimal energy consumer.

Why did you decide to get an energy audit?
The thermostat was working great, and I had some good discussions with the City of Austin person they sent out. He mentioned that they do energy audits for homes for free. I filed that info in the back of my mind.

When the summer temps started to climb, my bottom floor AC acted up, and really crashed. I had a 1 year home warranty contract on my home. When I called them, they reviewed the AC, but really were not going to take any "heroic" steps to improve my AC. It dated from the early 80's, and was going to continue to be unpredictable.

Did you use the City of Austin website?
I did some research at the point of my AC problems, and really tried to decide if it was worth it to make a heroic (and expensive) effort to improve my home. I did use the City of Austin website to see what "approved" vendors they had listed. I also got a reference from family members. I chose an approved vendor from the City of Austin website to come out and review my AC for repair versus replacement.

What was the first step you took to get started?
I contacted an approved vendor on the City of Austin website.

Did you get the “free home inspection?”
Yes.

Did you interview several contractors?
No. I could have gotten lots of bids, but I went with one that had been used by family members, and had done a quality job.

Was the City of Austin website easy to understand?
The vendor really was the one who facilitated all the paperwork and inspections.

Were you satisfied with the contractor that you used?
Extremely satisfied. The contractor facilitated and knew all the steps to take to get the energy audit. They made it very easy for me, the consumer.

Did you complete all recommendations?
Yes. I had new AC units installed, ducts sealed, insulation removed and new insulation installed, plus new solar screens installed on windows.

How long did the process take?
Several weeks.

Was there an inspection process?
Yes. A permit was taken out at the City of Austin, and a building inspector inspected the work after all changes were made. By selecting a contractor on their website, you already know the City of Austin has placed their trust in them, and know they do quality work to meet the requirements.

What did you do to upgrade your home?
Installed two new AC units
Removed all old attic insulation
Blew in all new insulation
Sealed all "drafty" areas
Put solar screens on windows that faced certain directions
Bought energy efficient appliances

Did the AC company contract other people to do the screens, insulation, and other non AC items? Or, did they do these items also?
The company I worked with did facilitate and organize all visits from the other subcontractors for screens, and insulation removal and installation.

Did you pay only one bill? Or bills to various contractors?
If I remember correctly, I paid only one bill to the company I worked with directly.

Was the house itself tested for air leaks? This would address weather-stripping and caulking issues.
Yes

Was the AC duct work tested for air leaks? This would address leaks in duct joints.
Yes

How much did you spend?
$12-15,000

Anything else?
I would say that it is not just being a conscientious-energy consumer that would motivate people to make energy improvements to their home. There are also incentives to do this in the form of lower energy bills, and federal incentives. The federal incentives were in place until the end of 2007, but maybe they have been extended. The City of Austin also helps with funding and incentives which they describe in detail on their website.

It helps to have a guide through this process. Having an approved, certified, trusted partner of the City of Austin put my mind at ease. They led me through the process to retrofit an older home and achieve the Energy Certification.

Let me know if there are more questions. I tried to be as complete as possible, but may have forgotten things. I have not found the audit yet, but will keep looking.

Warm regards-
Kathleen