There is a pretty strong neighborhood association that keeps all the properties looking well, and an architectual committee that works to uphold the uniformity and quality of improvements.  Part of what makes this neighborhood wonderful is a neighborhood park complete with a swimming pool.  Neighborhood children can participate on the neighborhood swim-team.

The webpage for the Balcones neighborhood is http://www.balconeswoods.org/.

This community is part of Austin ISD, and feeds into Davis Elementary, Murchison Middle, and Anderson High schools.

At some point, Southwest Alliance, the contractor for Texas and New Mexico that manages these properties for HUD, gets the go-ahead from HUD to put the properties on the market.  The property becomes active in Bid-Select and the Austin MLS (or San Antonio or Waco, etc.).

Once the property is active in Bid-Select, there are normally 10 days for buyers to submit their bids.  On the morning of the 11th day, all bids are opened, and the bid that nets the highest amount to HUD wins.  There are all kinds of caveats, here.  One point to consider is that HUD prefers to award bids to owner-occupants, so an owner-occupant will normally win out over an investor-buyer even if that investor-bid nets more money to HUD.

HUD properties are often listed at the low-end or slightly lower than other properties in the neighborhood, so many buyers are excited to wind the bid and make a great deal that nets some equity upon the purchase.  And all though there is no option period allowed in this purchase, buyers DO have a period of time in order to get an inspection of the property.  There IS NO NEGOTIATION with HUD on the price of the house past the bid.  The properties are all AS-IS.

Are you excited?  Are you ready to find a HUD property for yourself?

HUD properties are NOT real-world real estate.  However, a lot of the prep you need to buy a HUD property is the same prep you need for most other real estate transactions.

Before you submit a bid to HUD, you MUST have all your paperwork in order.  You MUST have your approval letter from a lender OR proof of funds to purchase with cash.  You MUST have a $1000 earnest money deposit in the form of a cashiers check.  You MUST have a Buyer's Agreement signed with your real estate agent, and NO you may not bid without an agent.

Why all the prep?  Once HUD says you have won the bid, you have 48 hours ONLY to get all required documents to HUD (or Southwest Alliance).  Keeping you on the timeline is one way your real estate agent earns their commission.  Time is of the essence in all transactions, but even more so in a HUD purchase.  You are always at risk of losing your $1000 earnest money deposit, whether you have turned it in to HUD or not!  And why must you use a real estate agent?  Because HUD wants to be sure that you have representation.  If the agent is not working for you under a Buyer's Agreement, then the agent is only working for HUD and is not bound to you.

But don't be scared.  It may not be real world real estate, but if you follow the instructions carefully and meet your deadlines timely, you can end up with a terrific real estate deal.

I think this is a wonderful shot in the arm.  Most first-time buyers, while full of gumption, likely do not know a whole lot about making a major rehab on a house.  I see homes daily where some poor soul has clearly gotten in over their head, ripping out carpet or taking baseboards off walls, and what is left at the end of the day is a house for sale that nobody wants, nobody wants to put money into in order to make it something somebody wants, or worse, it goes back to the bank (foreclosure).  Another sad feature here is that the poor soul that embarked on this fiasco is out money either because they have caused the property to be unsaleable at the price they paid for it, they've spent money on supplies they don't know how to use or install, or they've ruined their credit for the forseeable future by letting it go back to the bank.

There IS a place for the investors who will put in the money to rehab these houses and make them move-in ready for someone else who is not so handy with tools.  Now FHA is helping that process along by not causing a penalty to that following buyer who would also like the advantage of FHA financing.

You don't like the price I'm thinking that your house will bring?  (Or maybe you do.)

No matter.  You can set whatever price you'd like.

"What?", you say.  "Really?! Cool!"

What I'm saying is that you can set any price you'd like.  I AM NOT saying it will sell for it.

Here's the thing:  When you have a real estate expert review the market for your neighborhood, that expert is looking at sales in the recent past most similar to your own property.  That real estate expert can offer you a RANGE that your house is LIKELY to eventually sell, based on this recent data.  The price you set, with or without the input of your expert, is just a number.

Have you tried on shoes lately?  Or clothes?  Have you noticed how in some lines you are a certain size, while in other manufacturers products you are some other size?  Guess what:  Size is just a number!  Ha!  It really doesn't matter what the number size is--what fits is what fits!  Why would you settle for a size 2 shoe when your feet are much more comfortable in a size 8?  Or visa versa?  When you try on shoes or clothes or hats, the size you choose to try on first is just a starting place.  You size up or down depending on how that particular product fits your body.

At the end of the day, pricing a home is just like this.  You price it too high, and not only are you not likely to get any offers, you may not even get any lookers.  Price it too low, and you may give your equity away.  However, if it is a really good deal, you may end up with just the right price if your property gets proper exposure and you end up with buyers in a bidding war.  What happens in a bidding war?  You get pretty close to a perfect price because buyers offer the max of what they think your house is worth to them.  And what is the title of this article?

Listen to your agent.  They have your best interests at heart.  There are too many stories of sellers holding out for that too high sales price and months later settling for something much lower than the range discovered by the agent originally.  The agent surely wants you to get the best price for your house--their livelihood depends on it--and the agent's marketing dollars are tied up in marketing your property whether it sells at your too high price or not.

Or maybe not.  You may be interviewing agents to choose who will represent your property and get you the best price, but depend on it that those same agents are interviewing you, too, to determine if you are worth spending their marketing dollars on.  Marketing a house is an expensive endeavor, and the seasoned agent has learned to "take a pass" on spending hard-earned dollars on a pipe dream.

It is not too late!  The tax credits for first-time and repeat buyers are in effect, and can add up to $8000 or $6500 in your pocket for buying a home.  The catch there is that you must have a contract in place by April 30th and close by June 1.

Interest rates are STILL SO LOW!  Even creeping above the 5% mark, rates like these are phenomenal.  Do not expect interest rates to fall below 5% again any time soon--make your move and get financing.  The lower interest rate will allow you to buy more home.

Here's a great article that details how the buying power of your dollar shrinks with the rise in interest rates.

Be responsible in your decision to buy a home, but if you are sitting on the fence, do not wait too long.

Taco Deli is an informal sort of place, and not terribly roomy.  No worries, though, because the food is to die for.  Just reading a menu makes my mouth water.  And it's always crowded.  So you order your food, and hope a table opens up before it's time for you to eat.  You wait and listen for your name to be called, then wave the server over so you can dig in to your lucious meal. 

Today, I ordered to go.  I was just before the lunch rush, so found a seat to wait.  Lo and behold, I had not been seated long when the server approached with a bag to go--MINE! The guy knew my face and name, and had not had to shout it out looking for me!  What a delight!

It is said that to hear one's own name is the most precious sound to a person.  In this large city where you see strangers everyday, I would have to agree that someone calling me by name is thrilling to my ear.  It surprises and delights me. 

Sometimes in business, dealing with so many people all the time, we forget this important detail. 

Surprising and delighting can be taken further by listening.  Not only do I want to know your name, I want to know what makes you tick and how I can help you achieve your dreams.  I want to provide you with the service you desire when you mean to buy or sell a home.  Afterall, it's not my home--it's yours!

I'm hoping that this will help those first-time home buyers and current homeowners to get off the fence and start taking advantage of these historically low interest rates. 

I remember when my husband and I bought our first home in the early 80's, we were thrilled with an interest rate in the 12 or 14 percent range.  What a difference to our pocket-book it would have been to be able to get a 5 percent'ish loan!

This is a terrific time to be buying or moving-up.  The caveat is that you review your decision with your CPA or Financial Planner, and maybe even your lawyer.  Your particular situation may dictate that you need to stay put or continue renting.

However, for those who have left homes in a lease situation to pursue jobs in other parts of the country, you now get a piece of the pie.

Summary of the Tax Credit

TEXAS (San Antonio Business Journal) – Four of the five best labor markets in the country are in Texas, according to a new study compiled by Portfolio.com.

Austin leads the way, followed by San Antonio. Houston ranks fourth and Dallas–Fort Worth fifth.

Landing at third is Baton Rouge.

All 100 metropolitan areas in the study, including those in Texas, have seen employment decline since last year. However, while 5 percent of the nation’s private-sector jobs have disappeared since June 2008, the collective decline for the 'Texas Four' has been 2.6 percent.

The Texas markets still have 589,500 more jobs than they did five years ago.

Portfolio.com used a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula used midyear U.S. Bureau of Labor Statistics data for 2004–09, including unemployment rates and trends, and raw and percentage changes in private-sector employment.

Daily Real Estate News  |  October 8, 2009  | 

Aides: Home Buyer Tax Credit Extension Likely

Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said.

After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”

Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down.

Also, on Thursday, the House is expected pass legislation to extend the credit through 2010 for people who have been out of the country in the military, intelligence, or foreign services.

Source: The New York Times, Jackie Calmes

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 go 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.