Real Estate Information

With the increase in real estate activity this spring, and the lack of inventory of homes for sale, many home are selling quickly, and multiple offers are somewhat common.  If your offer is not the winning offer, you may be asked if you want to submit a back-up offer.  

1.  What is a back-up contract?

Basically, you negotiate an acceptable contract to the seller, but with a back-up addendum attached. The back-up addendum specifies that if the original contract terminates by a specified date, then your contract will automatically become the primary contract, and you will then automatically be under contract with no chance for other buyers to submit offers.  

2.  Why would I want to submit a back-up contract?  Can't I just ask the listing agent to let me know if their contract terminates and then just re-submit my offer?

When a contract terminates, the agent may change it back to "active" in MLS immediately, before he/she thinks to call people who had originally submitted offers.  This opens you back up to competing with other new buyers for the home and finding yourself back in a multiple offer situation.  Also, listing agents are human, and sometimes they forget that you told them that, or they can't find your contact information when the original contract terminates.  So, the house may go back on the market to the public, and you may not know about it, so you may miss it again.  In a hot market, the listing agent knows that they will likely find another buyer quickly, and they may not care if it is you or someone else.  Their client ends up happy either way.  But boy, does it make you mad when you find out you missed out again when the listing agent promised to call you if the contract falls apart!!!  So, if you really, really love a house that you don't get, it is the best way to ensure that you get a solid second chance if anything happens.

3.  Why would I not want to submit one?

When you submit a back-up contract, you still have to submit earnest money and option fee money to the listing agent.  So, your money is tied up on a house that you still may not end up getting.  You can keep looking at other homes, but if you find one you like, you will need to terminate your back-up contract (using your option period) in order to get your earnest money back to put down on another house.  A bit of a hassle...  If you don't really, really love the house, then it's probably best to just keep watching it, but also looking for other homes, and keep your earnest money freed up for when you find another house you like.

4.  What are the chances that a house under contract is actually going to terminate?

In a "hot" market like this, buyers have to make decisions about whether to make an offer on a home much  more quickly than they do in a slow market.  So, the likelihood is higher that contracts will terminate because buyers haven't had as much time to consider whether the house is really the right one for them.  They have to move quickly, so they put the house under contract, then later figure out that it isn't quite what they want after they have had a little time to look at it again and think about it.  Also, they often rush the lenders to give pre-qualification letters to submit with their offer (hurry, hurry!), and the lender hasn't quite had time to really look at their whole situation.  So, in this type of market, it is more likely that after they have had time to really review the buyer's financial situation, it isn't quite as rosy as they first thought...so the buyer ends up having to terminate the contract because of financing issues. 

I have over 11 years of experience as a Realtor in the Austin real estate market, and I have been through several cycles of slow "buyers' markets", and hot "sellers' markets".  Both markets present challenges, and both present opportunities.  Let me help you navigate the current market to minimize the challenges and take advantage of the opportunities that the current market presents to help make your next move your best one ever!

Wow!  What a start to 2013!  The real estate market in Austin, Texas has definitely changed from a buyer's market to a seller's market, ,and it seemed to happen overnight!  Normally, real estate sales are pretty slow in January and February, and just start picking up steam in March.  This year, my phone started ringing in early January, and normally quiet February has been crazy busy this year.  In the past week and a half, I have been involved in 4 multiple offer situations - 3 with buyers and 1 with sellers.  What a change from the past few years...and I don't see it slowing down anytime soon.  

There are now more people looking for homes than there are homes available. This is great news for sellers.  Of course, you still have to be priced right and have your home properly clean, decluttered, and staged for showing.  But with the shortage of homes for sale in Austin, even sellers with hard to sell homes should be able to find a willing buyer in this market.   For example, I just sold a home that backs up to Mopac in just 2 days, for more than list price.    

The shortage of homes on the market makes it fun to be a seller right now!  However, it has also created a new concern for those who are moving within Austin..."If I put my house on the market, and it sells right away, where do I go?  Homes are selling fast, so I'm afraid that I won't find a house to move to.  How do I time the sale of my home with the purchase of a new one?"  In a market like this, your Realtor's skills come into play, and you may find that negotiating dates and possibly lease-backs can become even more important than pricing.  

If you are buying, you will need to view homes as soon as they come on the market, and be prepared to make offers quickly and compete in multiple offer situations.  However, don't be afraid!  Multiple offers don't have to mean "bidding wars", or paying too much for a home.  Prices haven't gone up much.  You have to be in a seller's market for a while before prices start to really go up.  Austin historically doesn't have big upswings in pricing (and therefore, it doesn't have the huge downswings that other areas experience either!)  So, don't be afraid to look for a house to purchase in this economy.  You have to be willing to make a move pretty quickly on homes that are newly listed, but pricing is still reasonable, and with interest rates at all time lows, it really is a wonderful time to buy!

Thinking about moving?  Give me a call and let me know how I can help you!

The Grandview HIlls real estate market is improving.  As of September 14th, there were 6 homes that have closed in 2012, plus 6 more that are under contract, for a total of 12 Year To Date in 2012.  That is already 2 more than last year...with 3 months of selling left in the year.  This is still below the 2010 sales of 17 homes, but at least moving the right direction.

However, in general, the sales have come at lower price points than in 2011, with more sales under $300k and fewer sales in the $300-400k range. So, pricing has fallen to a level that has become attractive to buyers, which has spurred an increase in sales and a decrease in the days on market.  If buying stays strong, then we will start to see prices going back up. 

Homes are selling faster than they have in the past few years.  In 2010, the median days on market was 144 days.  In 2011, it dropped to 53.  Year to date in 2012, it has dropped to 22 days!  (This includes homes that have closed in 2012 and homes that are under contract.)  This is wonderful news for our neighborhood!  It indicates that we are strongly in a recovery from the buyers’ market.  The market will need to stay strong a little longer before we start seeing price improvements, however.

There were also a couple of “high-end” sales in the Estates section this year—another indication of strengthening of the Grandview Hills real estate market.   I anticipate that real estate activity in Grandview Hills will continue to improve as people in other communities get fed up with the traffic and as the new retail center brings new amenities to our area (like a movie theater and restaurants within walking/biking distance!).  I believe that this will make this neighborhood more and more attractive to buyers.  

Austin area home buyers finally figured out that the Austin area has not been hit as hard as the United States as a whole.  Job growth is good, people are moving to Austin from other parts of the country, and home prices have held up well compared to most of the country.  So, people have started buying again, which has lead to increased demand for homes, and a shrinking inventory of available homes, which in turn leads to higher prices and lower Days on Market.  This is great news!

According to the Austin Board of Realtors, both the number of home sales, and the price of Austin area homes is still on the rise!  According to the report, in August 2012, 2,397 homes were sold in the Austin area - this is 21 % more than in 2011!  The median price for Austin area homes also increased to $121,000, a 6% increase over August 2011.  Additionally, the average days on market for the Austin area dropped from 79 days in August 2011 to 61 days in August 2012.  

With this kind of news, AND the low, low mortgage rates, now is really the time to make a move!

Just like we can't understand the Austin real estate market based on what we hear about the national real estate market, we can't know what is happening in your specific neighborhood by just looking at the Austin-wide real estate numbers.  If you want to know what this means for YOU SPECIFICALLY, give me a call and I'd be happy to prepare a no-obligation market analysis for your home.

Call me at 512-496-2281 or email me at margaret.jolly@kw.com.

Warm regards,
Margaret T. Jolly

According to the July 2012 data from the Austin Board of Realtors, the Austin real estate market is noticeably stronger than it was in 2011!  

The number of sales per month has been higher every month in 2012 than it was in 2011, with the year to date number of sales 18% higher than in 2011.  Pricing has increased also, with the July 2012 average price up 8.4% to $277,146 and median price up 11.4% to $211,750 compared with July 2011.  The average Days On Market  for July was 27 days, down 42.6% from July 2011.  The combination of increased number of sales, increasing prices, and lower Days On Market indicate that the Austin real estate market is healthy and thriving!

Of course, this data includes the entire Austin area, including suburban areas.  Some areas of town are definitely stronger than others.  If you are interested in how things look in your particular area or neighborhood, please email me at margaret.jolly@kw.com and I'll be glad to pull information that is specific to your home and your neighborhood.

Hi there!  Hope you are doing well!  Just a quick email to let you know of some exciting changes in my life and business. 

I got married on May 24 to my wonderful husband Larry Jolly, so I now have a new name:  Margaret Jolly!  Yes, I love the name.  It makes me Jolly, and that makes me happy!

My new name has in turn has led to a new business name and website address for me.  So, here’s my new “jollier” contact information:

Margaret Jolly
Margaret Jolly Homes
Keller Williams Realty
512-496-2281
Margaret.jolly@kw.com
www.margaretjollyhomes.com

Yes, I’m still in real estate (over 10 years now!), and would love to help anyone you know who is looking to buy or sell (so they can be jolly too!).  The Austin market has gotten stronger in the past few months, and interest rates are still super low, so it’s a great time to make a move!  We have also just completed a major remodeling project on our new home, so I have some great contractor names to pass along if you are wanting to do some remodeling projects at your home.  Let me know how I can help you!

The Steiner Ranch Neighborhood Association held its first meeting on Wednesday, 2/29 this week at Steiner Ranch Elementary School.  The organization has been created to give residents and businesses in Steiner Ranch subdivision and surrounding communities a unified voice, specifically in terms of future development, annexation, schools, and safety. 

The new neighborhood association is not meant to replace the current Homeowner's Assocations.  Our HOA's are in charge of things like architecture planning and approval, trash collection, common area maintenance, facility reservation, etc and are mandatory.  The neighborhood association is designed to proactively support and lobby for the needs and concerns of residents and businesses specifically in the Steiner area.  Cost of membership is $50 annually.  Dues are used for communications, facility use fees, advertising, etc.  The association is a non-profit organization.

Board elections will be held in upcoming meetings and nominations are currently being taken online.  The first membership meeting will be held on 3/28/12.  Further details to be announced.

To join the neighborhood association or to get additional information, please go to the following website:

Steiner Ranch Neighborhood Association

Former FSBO CEO sells home the traditional way

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.