Thank you Austin Business Journal for 2014 Residential Real Estate Awards luncheon.

Yesterday the Austin business journal held their annual Realtor recognition awards luncheon.

It was an honor to be selected as a finalist in the individual agents category. I want to congratulate all of my colleagues in Austin that were recognized for their hard work and contributions to the Austin real estate community.

I wish you all a successful 2014!

I have several inquiries about where the cities of Rollingwood and Westlake Hills are in relation to down town Austin. Just Minutes!!

The City of Westlake Hills, http://www.westlakehills.org/ was founded and incorporated as a village on September 9, 1953.

The city today is comprised of 2,560 acres (four square miles) with approximately 40 miles of public streets.

source: http://www.westlakechamber.com/pages/Home/


ROLLINGWOOD, TEXAS. http://www.cityofrollingwood.com/  Rollingwood is near Loop 1 south of Austin in southwestern Travis County. It was founded and developed by George B. Hatley in 1955 and by May 1963 the community incorporated as a municipality with a mayor-council form of government.

Source: http://www.tshaonline.org/handbook/online/articles/hjr12

Both of these towns are unique in the Metro area because they are incorporated municipalities and have their own form of government and law enforcement. They share some services such as public schools participating in the Eanes ISD and cooperate with emergency services and Zip Code.

The physical boundary separating these towns from Austin downtown and it's urban neighborhoods is Lady Bird Lake (formerly town lake). Adjacent to the multi functional Zilker Park, https://www.austintexas.gov/department/zilker-metropolitan-park  and the Zikler botanical gardens, http://www.zilkergarden.org/ . These towns are highly sought after locations for their ease convenience of commutes, community involvement, access to recreation areas and LOCATION.

when I 1st moved to Austin I ended up in "Austin City Limits" but it was across from Rollingwood, http://www.cityofrollingwood.com/ on 2244 (Bee cave Road) It was an amazing place to begin in this great city. 10 min to downtown, 20 min to airport, schools, shopping, parks all w/in minutes.

Today there is a lot of renovation and newer homes being built after tearing down older smaller homes in  the communities that sprang up in this area in the 1970's/1980's. The demand for new homeowners and the lack of large land left for residential development means that real estate prices in this area have seen a significant appreciation over the last 10 years.

If you are thinking about moving to Austin and would like more information about this area or any area of Central Texas please contact me and I will be glad to assist. I have experience in listing and representing buyers in this area for over 12 Years.

look forward to hearing from you.

Bob Kenney,
Realtor
® 
Mobile/Text : 512-922-4922

Did you know Austin is home of the Circuit Of The Americas (COTA) the first purpose-built Grand Prix facility in the U.S.?

 

Content Courtesy of : COTA   http://circuitoftheamericas.com/

 

Circuit Of The Americas is a multi-purpose facility that will host the most prestigious racing events in the world, including the Formula 1 United States Grand Prix™. It is the first purpose-built Grand Prix facility in the U.S. Built around a state-of-the-art 3.4-mile circuit track with capacity for 120,000 fans and an elevation change of 133 feet, the facility is designed for any and all classes of racing – from motor power, to human power.

 

Circuit of The Americas is ideally situated on a 1000-acre site in southeast Austin, approximately two miles from Austin Bergstrom International Airport, with scenic views of downtown.

 

Far more than a racetrack, Circuit of The Americas is a world-class performance, education and business center that will feature:

• Racing-focused amenities including a private Motorsports Driving Club and a Karting Track
• Public spaces for private events, seminars and conventions
• Visitor attractions that include an expansive live entertainment space, retail center and museum
• A center with research facilities and robust services and amenities to power a broad range of business, technology and education allies
• 40,000 sq. ft. state-of-the-art Conference/Media Center
• 5,500 sq. ft. medical center, offering paramedic services and EMS & medical student training
• Area for law enforcement vehicle training
• Fire and rescue training areas
• Driving academies
• Educational programs

 

An amazing facility and one of Austin's true 7 wonders!

 

Photos: courtesy of Bob Kenney - Inaugural F1 race 2012 

 

How come some of the listings I see on public search sites do not reflect current status or correct pricing?

Hi Jason,

Good question and one that has, depending on who you ask, fingers pointing in every direction! The advent of such sites as Zillow and Trulia (the 2 best known but not the only 2 search sites for real estate) has been the development of local MLS (Multiple Listing services).

These services act as the bulletin board for realtors to post (list) their listings and leases in a given market area. These listing are pretty complete and comes with a set of rules the users need to follow in order to use the service. Like reporting all price changes, changes of status and sold information once a transaction if closed. There are usually fines associated with violations of these things and the separate entities do best to police themselves and their members. Accuracy is probably 95%

At some point in town these 3^rd party sites , Such as Zillow/Trulia, came into being and the MLS's communities saw this as an opportunity to broadcast their members information onto a wider national platform. I most cases costs of sharing the information was minimal because there platforms do not typically charge to list the properties.

How can they do that? Because they do charge advertisers that are attracted by volume of visitors to their site. So for these companies the more listings they have the larger number of audience they attract. They also can tap the Realtor® market by selling placement services on each property landing page. Ever see the “Neighborhood expert” spot? Well I can tell you from experience they are not experts in the neighborhood they appear next to. They have just paid to be placed there as the expert..Never mind going down that path but it is a little misleading to say the least..

So now you have all of this information posted on sites not under the same guidelines as the original host site. Some of these sites data fields don’t match up the same, sometimes the data is corrupted, sometimes the changes to status and price to not make it to the 3^rd party site, some times the changes make it but the site reads it as a duplicate and does not publish the changes. I ave hear a lot of excuses from various 3^rd party sites over the years.

These sites have different ways of advising the public on what estimates are for home values although usually those values have noting to do with market activity in a given market place more to do with public tax evaluations and other public information. In Texas sale information is not made public, the 3^rd parties respond well if you want more accurate information to be given by us release the sold information to us. By law it just does not work that way so they go ahead and publish information that is inaccurate and helps create this market confusion over prices.

It is a nasty spiral and one that is about to change. A lot of MLS's around the country are not sending the information to these 3^rd party companies anymore. This will leave them looking for other ways to generate traffic to their sites. In that past they have down played the accuracy of the information saying it is not our data we just show what is given to us. Being a realtor and have data misrepresented on these sites and trying to get the information changed is not an easy task.

I actually had one client call and started crying on the phone that she had just gone on and done an estimate on one of the 2 biggest sites and they told her she had lost value in her home over a 4 year period and lost all of her equity. I of course panicked because I knew that was not even remotely possible because of the property she purchased. The comps showed her not only was her equity protected but she had actually realized a a nice appreciation. We sold her home and she now does not visit those sites anymore.

So there are many reasons the data may be different. The feed with the updates not working, service agreement that bought original data to the 3^rd party site is out of contract and they just not updating stale info. Duplicate listings from different sources some being updated some not being updated. Agent has not updated the info on the original MLS site.

The best solution would be to contact the listing agent (If you can find their name since even that information is blocked by 3^rd parties sometimes so they direct you to a paying advertising agent) and ask what the status is. Anytime you are looking at real estate it is a good idea to verify all information before you act.

Hope this helps.

Please feel free to visit: http://www.austinhomelistings.com/agents/robert-kenney/

For real estate information in the Austin and surrounding areas.

Regards

Bob Kenney, Realtor®

Mobile/Text: 512-922-4922

I want a friend who’s Real Estate License has expired to represent me as an agent, but no Realtors are willing to help me find a home? What is going on?

Hi Jean,

Thanks for the question.

So to answer your question. You want a Realtor® to search the market for a suitable home, Make appointments, provide you with current data and advise you on the market and what you should pay for a home, write the contract and have your friend receive the commission?

First of all your friend can not receive commission from a real estate transaction because he/she are not licensed. If they have an interest in participating in real estate transactions such as yours here is my advice:

You should suggest to your friend that they reinstate their license. Then they would be able to refer you to a licenses, practicing Realtor® and ask for a referral fee. That way your friend generates some funds for referring his excellent client and the Realtor® actually doing the work and assuming all of the responsibility and liabilities, that go with that work, gets paid for their service to you. A win win situation for everyone.

Please feel free to give me a call if you need more info.

Regards,

Bob Kenney, Realtor®

Mobile/Text: 512-922-4922

My friend told me that if I listed my own home, Realtors with buyers will do all the work and I wont have to pay them? Is that true? It doesn’t sound right.

Thanks Bill for email.

“If it sounds too good to be true than it is”. I a homeowner lists their own home we refer to that in the industry as a FSBO (for sale by owner) 90% of the time a FSBO will offer to work with buyers agents. This means if and agent brings a buyer, the seller will agree to pay a compensation in the form of a commission to the buyers agent. In the case of the other 10% they say they will not work with an agent and compensation is between the buyer and their client.

It doesn’t sound right because, the FSBO who does not want to work with the buyers agent, puts all of the exposure on performance on the buyers agent who is now obligated to represent their clients interests and be fair to the FSBO making sure that contracts are explained and understood, procedures are followed, time lines met and that the seller complies with any additional addendum or requirements of the sale (such as repairs etc.) As a professional real estate agent, Realtor®, I would make sure all of this is done and have an agreement with my client that they pay me compensation for my representation.

At the end of the day the compensation is being generated by what they are willing to pay for the home so in the end the seller is ultimately paying for the compensation depending on sales price because his net proceeds is a reflection of what the buyer is willing to pay GROSS. Hope that makes sense!

Look Realtors® are like all professionals. They need to work to provide for their families. A commission is a % of transactions proceeds. Much like the sales of any item you purchase has some accommodation for profit over and above the cost of goods that a vendor is selling. From the “profit” there is a “gross profit” and a net “profit”. If a Realtor® generates $1000 in commission, they need to set aside federal and state taxes, deduct expenses directly related to that transaction & deduct brokerage fees (each broker has a fee schedule that they charge each agent on each transaction) so their net is going to much less than that of the whole amount.

As a Realtors® business and volume grow they also have an increase in expenses for advertising, infrastructure, assistance, office/storage space, travel, advertising for a realtor is working and marketing 7 days a week.

If you get buyers agents that don’t want to coordinate a deal if a FSBO is not working with agents don’t think of them bad agents. It is a lot of exposure legally if something is to go wrong and a lit of pressure treating all parties fairly while maintaining the fiduciary relation ship of their client. If everyone works with one another the trans action will be smoother and chances are there will be less issues resulting from unmet expectations or lack of understanding of the contract and its terms.

I strongly suggest if you are selling your own home that you spend a little money having an experienced real estate attorney look at any contract that is presented for you to sign.

Hope this answers your question Bill. I hope that you have a successful transaction. Don t forget to consult with an reputable full service real estate broker in your area to see all of the services that they can provide for you as your listing agents, Realtor® representative.

Let me know if you need a referral or have any further questions.

Regards

Bob Kenney, Realtor®

Reilly Realtors

Mobile/Text: 512-922-4922

Why when I sign up on real estate web sites do I get a bunch of agents calling me right away?

Hi Rose,

It's great people are paying attention! I love to hear that !

So your on a real estate brokers web site, 85% of the people that come to the site are there to see property listings. Most sites will let you look at a min 3 property listings and then figure that you have a level of interest that may require some assistance from and expert.

The Broker has working for them, real estate agents developing their brand recognition in a given market. Different brokers focus on different aspects of services they provide their client base. You know what is important to you with someone who works with you: dependability, knowledgeable about the area of choice, experienced in real estate transaction, honest and other personalities you feel important to have predetermine criteria.

On the agent side they are interested in providing excellent service for their client in the hops of concluding a successful transaction and perhaps receiving referrals from you if they do a great job.

So in the pursuit of providing the client with a great experience there has to be a starting point in communication. Auto email responses let you know a system is functioning but we have found does not give the client an attachment to a person. A quick phone call while you are most likely on the site lets you know that there is an agent available to answer any questions you may have or just make the initial personal contact.

So some consumers are trying to avoid talking to the agent or brokers especially early on in a search process. There are several logical reasons for this. “I don’t even know if I am going to move”, “I am not moving just curious for a friend”, “I already have an agent just don’t like their web site”, “I am busy and don’t want to be bothered at work”, “My spouse doesn’t know I am looking at buying a new home”. Yes I have heard all of these responses!

The agent can tell pretty quick if it is a lead that has some sort of success in converting but the good agents are not going to call you several times a day and keep asking you the same questions or pestering you to meet in person. Once they talk to you they can make their notes and set up time for a follow up or Email/Text with contact information.

If you have several agents calling you it could well be that you have signed up for similar services on different brokerage sites and as such they each have an agent reaching out to you so it seems pretty overwhelming.

Form the clients perspective. If you just let the agents know that you have chosen to work with another agent or that you are undecided about your timing and they should call back in 3 months (you pick time line) they will call you back typically. Once you do choose a Real estate agent as your representative give them as much information as you can about reasons for a move, all criteria that is going to make you want one home over another and work with him as a partner in the process. You will get the occasional agent trying to persuade you to use their services, simply tell them you are represented by an agent and would appreciate if they took you off of active lead list.  Uses this as your initial interview period to ask agents questions you know are important about who you want to be working with.

This will help save time and effort for everyone and you will be getting a lot less calls.

Hope this information helps Rose. Don’t forget you can always contact me direct Mobile/Text @ 512-922-4922 with any questions of if your need an experienced real estate agent in the Austin area.

Regards,

bob Kenney, Realtor

I am thinking about listing my home and a friend referred me to an broker who provides limited services. What does this mean?

Hi Jennifer,

Great question.

There are some brokers that provide "limited services" for buyers and sellers of real estate. If you include the phrase “limited representation” in this description you would have a clearer picture of what they are offering.

From my experience they usually offer a seller to list the home in a locale MLS and maybe put a sign in the year. The seller is responsible for making appointments, following up on agent visits, any interaction with interested parties and all marketing and advertising expenses. In some cases they will receive an offer but consulting on the offer is an additional charge from their “services menu”.

Most of these “limited services” brokerages will offer all of the additional services from a “services menu”.These services are on a fee basis(A la caret). $$ for sign, $$ for asking agents what they thought about your property, $$ for negotiating contracts etc. There may be some advice given when an offer is received but typically the seller is relying on his or her knowledge about the real estate market to make decisions.

For this limited service they will charge you less than what a full service brokerage would charge you to list the home. Full service brokers on the other hand become your partner in the process. Running interference with buyers agents and their clients by gathering answers to questions that they know will be asked beforehand, marketing and advertising costs are paid by the agent/broker, getting the best possible exposure for your property, advising on strategies, pricing and timing of market conditions, advising on what needs to be done to get a home ready for market, doing analysis of the market so you can be competitive when you list, handling all of the paperwork that will be needed for a successful transaction. There is much more that each individual agent brings to your table that is not on a Service menu basis but part of the obligation that the real estate agent has with their client.

For buyers similar limited representation, they may get notified of listings in the area they are interested in but when it comes time for making appointments with listing agents or sellers it is all up to the buyer. They will produce an offer for the buyer at the time the buyer identifies a home they are interested in and in a lot of cases prepare offers for homes they have not even visited. I once had an out of town buyer contact me to see a home my broker had listed because his agent said if they were only in town to look at homes he did not have time to show them properties, just let him know when they found something they liked and he would write an offer!!

Everyone is entitled to their own opinion on this type of service. I had a client once mention after talking to a limited service company it felt like having to go to court with out your lawyer!

In either buyer or seller case it depends on how comfortable the client is with dealing with the whole process by themselves. Sometime the opposing agents get a little frustrated by doing the work of 2 agents but having to pay the other agent a commission for less than full service. For the full service areal estate agent at the end of the day it only matters if their clients interests are best served so you do what you have to for your client.

I would strongly suggest you meet with a full service brokerage in your community and compare the level of services and dedication you may find with a full service brokerage. Keep in mind it takes a lot of the stress off of you during the selling process when you have someone working side by side with you instead of being available just a FEE away!

Good luck in your listing. Please feel free to contact me for Full brokerage services if in the Austin, TX area or if you need a referral for anywhere else in the world!

Kind Regards,

Bob Kenney, Realtor®

Reilly Realtors

Mobile/Text: 512-922-4922

I think there is an issue with a home I like, how can I check it out before I agree to agree to purchase the home?

Hi Vivian,

First thing you should do is have your real estate agent, Realtor®, ask the sellers agent or the seller if for sale by owner for a copy of the sellers disclosure. Read this document carefully as it should have information on any material issues that the home may have had since the current owner has owned the home. A lot of people are skeptical about the disclosure but as professional Realtor® we encourage the home owner , as listing agent, to fill out the disclosure with all the facts. The penalty in Texas for non disclosure of an issue is stiff and dates from time of discovery about a non disclosed issue.

In Texas we have what is called a Termination Option period. It gives the buyer the unrestricted right to cancel the contract with out penalty through the term of the option period.. It is negotiated with each home sale. This is the point the buyers have to inspect the property and decide if the property is right for them.

If there is something you just do not feel is right about the property and it is not on the sellers disclosure then this is the period you want to investigate. Most home owners will not let you do inspections on their property if you are not under contract because if there are unknown issues discovered they would then be obligated to disclose the issue to the next buyer if you chose not to buy the home.

Different states have different rules but most states allow for inspections of property after a home goes under contract. Please contact a real estate professional in your area for assistance and don’t let the home go to someone else if you feel it is the right one.

If you are in Texas and need assistance. Give me a call I will be glad to represent you or refer you to a Realtor® in your home town that can represent you.

Regards

Bob Kenney, Realtor®

Reilly Realtors

Mobile/Text - 512-922-4922

I am buying a condo and no one can tell me exactly what the HOA fees pay for.

Hi Lori,

Hopefully you have a real estate agent representing you in the purchase. Your Realtor® needs to ask the seller and or their agent for a copy of the CC&R, The covenants, conditions & restrictions, are the governing documents that dictate how the homeowners association (HOA) operates and what rules the owners, and their tenants and guests, must obey. These documents may also be called The bylaws, The master deed, The house rules or another similar name.

These documents will spell out what dues or obligations exist between the owners of the units and the associations. Each association has a different set of operating rules regulating things such as parking, 3 of guests permitted and how long they can stay. Also such things as special assessments that may be required by the owners of all the units that comprise and association. Usually special costs that may not have funds in reserve like replacing a controlled gate access or repaving of drive way.

So there may be no one answering because they are not familiar with what is in the CC&R. These are typically provided to a prospective buyer once a property goes under contract with in a specified number of days from the executed date of the contract. However most selling (or listing ) agents should have this information available because their clients have been paying the same assessment since they have lived in the unit assuming it is a resale.

For new construction then the builder is responsible for these documents and the accounting of the dues. It is not common for a builder , especially for “pre construction”, not to have that information defined. Crazy as it seems they wait for the project to be completed to define those costs. A lot of people are caught off guard by larger than expected obligations.

Hope this helps point you I the right direction. Congratulations on your real estate purchase I hope your transaction is a successful one.

Please do not hesitate to contact me should you have additional questions.

Bob Kenney, Realtor®

Reilly Realtors

Mobile/Text: 512-922-4922

http://www.austinhomelistings.com/agents/robert-kenney/

Do Open Houses really work to sell my home?

Thanks for the Email Jack,

There are a couple of different schools about Open Houses

A) While the additional exposure can not hurt the marketing of a home. A large percentage of the time the Open Houses benefit the Realtor® holding the home open to the public.

The agent has a chance to interact with the people coming through the doors and if this is not the right home than maybe they can help them find another one that would be a better fit.

B) Open houses are a great for the exposure of the home in any kind of market.

So you have agents that are looking for the opportunity top “pick up buyers” and agents who believe in exposing the home to as many individuals as possible hoping to generate interest in your home.

In my experience a buyer walks into an open house blind maybe less than 5% of the time. I believe open houses are a win win for the homeowner and the agent as it helps expose the property to a market (people that love to go to open houses) and to neighbors that may have friends or family wanting to move into the area.

It really comes down to the homeowner and how they feel about open houses. I have had clients prefer not to open their homes up to the public. Trouble of getting the home in “showing condition” worry about personal property etc.. I think it is a marketing tool that has to be discussed before you list the home so that everyone’s expectations are set before the home gets to market.

So to recap – Yest it can be helpful to have open houses, especially at the beginning of a listing, but it depends on homeowners feelings about preparing and opening their home to the public.

Have the discussion up front with your Realtor® They will know the locale market and how important/unimportant it may be from a locale market perspective.

Good luck with the sale of your home Jack.

Bob Kenney, Realtor®

Reilly Realtors

Mobile/text: 512-922-4922

 

 

 

 

 

Hi Elizabeth,

I assume you mean from the Buyers prospective? Here are some basic to help understand the negotiation process.

Once a property if “Offered” for sale it is offered with specific terms such as price and condition. Time frame of the transaction is left open for negotiation unless otherwise specified (must close on or before X date).

As the buyer you have a couple of options. You can make and offer using the offered terms with no changes and add you desired day of close. I usually include time frame for response, “please respond by 5Pm of the following day or this contract may be considered null and void” this helps makes the transaction move along at a reasonable pace and helps prevents the seller from shopping your offer with other potential buyers. Once the seller receives this offer they then have 3 options

1.     Accept your offer – Offer is signed by all parties and the contract proceeds to Escrow.

2. Counter offer any of the terms including price, day of closing
3. Not respond in which case your offer has not been accepted

If you receive a counter offer you now have the same 3 options as the seller had when they received your offer (as above)

It is important at this point to realize that ANY change on the contract, even if it was something previously not changed of changed makes the contract eligible for the 3 responses. So for instance you agree to all the changes the seller has countered to you with except now you want to change the Number of days you may have for an option. This change goes back to the seller and now they have the 3 choices in their court.

So you see it is important to list out all terms early on and decide which ones are most important to you and would be worth either breaking a deal or moving on.

Now the really important part:

NO DEAL IS CONSIDERED TO BE A EAL UNTIL ALL PARTIES HAVE INITIALED AND SIGNED THE ENTIRE CONTRACT AND ALL ADDENDEM,

In regards to Texas Real estate once the parties have agreed on all terms of the contract, initialed and signed all parts of the contract and any addendum the contract is considered Executed. Then the contract (in Texas) is delivered to a title company along with the agreed upon Escrow funds the minute after the contract is executed the clock starts ticking on the various time sensitive deadlines of the contract including getting the contract delivered with escrow funds to title company.

Remember there are lots of parts to any transaction so the required addendum and number of negotiated terms may vary from transaction to transaction.

I hope you find this helpful and should you have any further questions please feel free to contact me at your convenience.

Bob Kenney, Realtor® Mobile/Text : 512-922-4922

Home market status? What all the abbreviations mean..

Jeff from Fresno asked: What does Pending taking back up mean?? I am from California and not familiar with the term.

Great Question Jeff, All over the country there are different terms used in real estate transactions. I will try and out line the major ones here.

Texas area status abbreviations and definitions

A = Active – A property is active and a seller wants to sell

AC = Active contingent – A property has an accepted offer however the property is contingent on the sale of another property by the buyer.

PB = Pending taking back up – A property has an accepted and executed contract in place but there are option periods that the buyer has negotiated and the seller has reserved the right to accept back up offers on the property. Once another offer is accepted the seller notifies the buyer in position A that a back up offer has been accepted on the property.

P = Pending – After all option periods expire and the contract is still in place this status change just lets the market know that the contract is proceeding to a closing.

S = Sold – The transaction has closed and funded.

W = Withdrawn – Property has been with drawn by the seller from MLS

X = Expired – Listing contract has expired and the property is not being actively marketed on MLS

T = Temporarily withdrawn – seller has asked that the property be removed from active ststus but intends to resume marketing at some point in the future.

L = Leased – A property has been leased for a contracted period of time.

Some markets will have variations of these statuses. In California they refer to a contract as being under “Escrow” that means the funds are with tht title company or attorneys in an escrow account to be distributed on the closing date of the contract. In Texas we use title companies to transact 95% of the residential transactions. They set up escrows for each individual property as well we just do not use it in our language.

In Massachusetts and some of the New England states. Real estate transactions are closed with attorney offices that do the title work and sellers and buyers go to the attorney's offices to sign the paper work.

I hope this answers some of your questions Jeff. Please feel free to contact me directly if you need more information.

Bob Kenney, Realtor ®

Mobile/Text - 512-922-4922

Contingency offers: Good or Bad?

Most agents selling real estate in the last 10 years has received a “contingent on the sale of other property” contract at one point or another. Is it good or bad for your seller client?

Like everything else in a negotiation it just depends on what the property being sold is, How it is priced compared to the market conditions and the terms that are offering.

FACT – The majority of consumers looking to buy a new home will need to sell an existing property to access equity and reduce Loan to Value ratios in order to qualify for a new mortgage. Of course there are exceptions to that statement. Buyers with Cash, someone who may own an existing property outright but most people will need to sell one home to buy another.

So it all comes down to TIMIMG

I urge my clients to look at the offer they receive 1^st and once they address any terms that need addressing but before there is a response, then look at the contingent property.

This requires a little more cooperation from the buyer and his/her agent. Once a consumer has found a home they want to buy they tend to get pretty serious about getting their property sold. If the property is one the market and they have an offer that is past the option periods then it is still considered contingent but it is a little stronger than maybe something that is not on the market, not ready for the market and is going to be priced too high for quick contract.

Each situation is unique and I think contingency offers need to weighed just as seriously as non contingent offers. Is there risk for a seller to take a contingent offer? Yes. What if the contingent home does not close on time? You would have signaled to the market that you have a contract on the property but a contingency and it may be dismissed by some other potential buyers. Are there benefits for the seller ? Yes typically you can be a little firmer on price that with someone who may think they can discount you property if paying cash or other favorable terms.

So I would always suggest that the offer be considered as serious as any other offer and treat it was much respect. In 13 years as an Agent I have had only 1 Continent deal fall through and it was a client who was not very honest about the sale of their property. Other than that I have concluded several contingent contracts successfully and when a buyer is in that position I have learned that the presentation of the offer, terms and status of their home sale if handled correctly can be a positive for the selling client.

Let me know if you have any questions.  I appreciate your referrals!!

Send questions to Mobile/Text: 512-922-4922

Regards,

Bob Kenney, Realtor®

Texas Homestead Exemption Application

If  you have purchased a home in Texas in 2013 as a primary residence you are eligible to apply for what is called a “Homestead Exemption” after January 1, 2014.

There are several companies who will advertise to you that they can file this application for you for a fee. Do not pay the fee. There is no charge for this application it is free!

The county in which you reside will have the forms available to you as a PDF (in most cases) print it out fill In the information and send it to the address on the form.

Travis County link is here: http://www.traviscad.org/pdf/Forms/Exemptions/50-114_Homestead%20Exemption%20Form.pdf

Hays County link is here : http://www.hayscad.com/forms/

Williamson County link is here http://www.wcad.org/Appraisal/PublicAccess/Forms/PublicServices/HomesteadExemptionApplication.pdf

Also here is a copy of a blank form – Whatever county you live in simply fill in the tax appraisal district information and follow instructions. You can find mailing address on your locale appraisal district web site: http://www.window.state.tx.us/taxinfo/taxforms/50-114.pdf

What is a Homestead Exemption:*window on state goverment http://www.window.state.tx.us/taxinfo/proptax/tx96_295/home.html

Savings on Home Taxes   

An exemption removes part of the value of your property from taxation and lowers your taxes. For example, if your home is valued at $50,000 and you qualify for a $15,000 exemption, you pay taxes on your home as if it was worth only $35,000. Other than exemptions for disabled veterans or survivors, these exemptions apply only for your homestead. They do not apply to other property you own.

Does your home qualify for exemptions?

You must own your home.

To qualify for a general or disabled homestead exemption, you must own your home on January 1. If you are 65 years of age or older, you need not own your home on January 1. You will qualify for the over-65 exemption as soon as you turn 65, own the home, and live in it as your principal residence.

Your homestead can be a separate structure, condominium, or a mobile home located on leased land, as long as you own it. Your homestead can include up to 20 acres if the land is used as your yard.

A residence may be owned by an individual through an interest in a qualifying beneficial trust and may be occupied by a trustor of a qualifying trust.

If you are not the sole owner of the home, you will receive only a portion of any qualified exemption, based on your percent of ownership. For example, you own a 25-percent interest in a homestead valued at $100,000, for a total value of $25,000. You will receive 25 percent of a $15,000 school homestead exemption, or $3,750.

You must use the home as your principal residence on January 1.

If you have more than one house, you can only get exemptions for your main or principal residence. You must live in this home on January 1.

If you temporarily move away from your home, you can still get an exemption if you don't establish another principal residence and you intend to return. For instance, if you enter a nursing home, your home still qualifies as your homestead if you intend to return.

Renting part of your home or using part of it for a business doesn't disqualify the rest of your home for the exemption.

Note: Texas has two distinct laws for designating a homestead. The Texas Tax Code offers homeowners a way to apply for homestead exemptions to reduce local property taxes. The Texas Property Code allows homeowners to designate their homesteads to protect them from a forced sale to satisfy creditors. This law does not protect homeowners from tax foreclosure sales of their homes for delinquent taxes.

So get your applications in and don't be fooled by the offers to make application on your behalf.

Let me know if you have any questions.

Regards,

Bob Kenney, Realtor®

VP Turnquist Partners Realtors

Mobile/Text: 512-922-4922

I need to lease a home, can my Realtor help me?

Hi Loni,

Thanks for the question.

In most cases your Realtor® will be very happy to assist you and very appreciative that you thought to seek their advice and assistance.

Leasing of homes and apartments is handled different all over the United States. Each market seems to have it;s own system in place. In Austin, Texas your have either a leasing company or management firm, apartment owner leasing, Listing agents (Brokers) that will list your unit in MLS for all realtors to see.

Some Realtors® prefer not to assist clients in leases. This is always an individual decision by the agent. I have found that telling a client they are no interested in assisting them but “hey don’t forget to call me when you are ready to buy”, is not a very good business policy!

If I have a client in need of assistance on any type of transaction I will do my best to handle the transaction or if not qualified find someone with the experience needed to give them the best representation.

For a Realtor® they earn a commission from the leasing transaction after the client has been approved for the lease and lease the terms are negotiated and the lease is signed and funded (security deposits and rent payments made). Typically the Realtor® will receive a % from the leasing company or listing broker between 30-50% of the 1^st months rent.

There is a lot of paperwork associated with the lease process , at least here in Austin, and it is very chaotic as every company/broker has their own sets of rules in order for an applicant to be accepted. I personally think there is a better way to handle leasing process but think until a more efficient process is introduced there is just no way to get around the pain of the leasing process.

The majority of agents will assist you in this transaction so please make that call!

I will point out that in some markets around the country the leasing market is very tight with available inventory. There are usually multiple lease applications on desirable properties and how you present your application is essential in obtaining the lease. So work with your agent and let him/her find out exactly what is required to present a strong application. Do not assume that this is any easier than buying a home! Sometimes it seems to be even more difficult to get approved for an application than a mortgage.

The main reason is that the owner of the unit is trying to get his monthly cost of carrying the property covered by the rent. Any disruption in the rent payments could be costly for them so they want to make sure they are not having to re list the property every couple of months and gamble that they might loose income for any period of time.

So emotions run high in these transactions. Don’t be put off bu being rejected, a lot of lease negotiations fall off prior to the finale leases being signed so it is good practice to keep in touch with leasing agent for the next 5 days or so after they have decided to go with another applicant. Don’t stop looking just keep it in play until it becomes more finale.

What to have prepared for a lease application:

1.You will need to approve the leasing entity access to your credit and criminal history. This is usually included in the “application fee”. They will access an on line service that costs between $30-$50 per applicant (You will need separate applications for each adult that will be named on the lease) It is usually required that this application fee be paid with application in certified funds (money order or cashiers check) and made out to the leasing entity. This fee varies but runs between 40-75 depending on the company. Yes more than the costs of the reports!

They will send you an Online approval from the credit checking service asking for permission to access your records. Be prepared to check spam box if you do not get anything w/in 24 hours

2. You are sometimes required to also submit security deposit (typically 1 months rent) by either cashiers check or money order. It is usually made out the owner of the property but some leasing companies have escrow accounts so from time to time you make these out the leasing company. You really need to know this info up front so make sure your agent asks!

I know – "WHAT!  I have to give them security deposit before I know that I am approved? " What happens if I am not approved? This is one of the broken features of the leasing process in Austin market. I cant tell you the number of times I have had to fight with the listing entity to get these funds back. Some will just hand you back the cashiers check/money order and your client can return to where they purchased it to convert it back into dollars. Some will actually cash the check and then wait 7-15 days for the funds to clear then issue you a refund check, some very unscrupulous companies will tell you you lost the funds and you need to get very argumentative to get funds returned. If nothing else this is a great reason to have a Realtor® involved.

  
3. Read the lease carefully (as with any legally binding document) and make sure you know the terms of the lease. Make a copy of it and keep it handy because after the term of the lease there are certain time deadlines you will be responsible for and you will want to have a quick reference

Hope this answers your question Loni. Please feel free to contact me if you have any firther questions or need a referral!

Regards,

Bob kenney, Realtor®

VP Turnquist Partners Realtors

Mobile/Text: 512-922-4922

“What’s going on in the market?”

Ever ask a Realtor this question at a party or social event? Surprised at the generality of the answer?

We as Realtors are taught to respect the Agent/Client relationship. If you are not formally working with an agent you are what we refer to as a customer.  In an Agent/Customer relationship there is no general understanding about the respective roles of each individual.  A Realtor sounds guarded because we are taught not to give advice that others may act on if they are not clients. Seems trivial but it is rather fairly straight forward. You might not reveal all the particulars about a property or transaction you have in mind when you ask the question. You act on agent’s thoughts and later feel you were misadvised about the state of the market. This has actually happened and as a result Realtors have been faced with having to defend themselves in law suits.

In an Agent/Client relationship there is full disclosure of motive, fiduciary responsibility of the Realtor to protect these motives and all personal information disclosed in the relationship. This fiduciary responsibility survives any contractual dates and a good, professional Realtor will make certain you are advised of these facts. Thus when advice is given it is specific and well thought out.

There are several misconceptions a professional Realtor deal with on a daily basis “every Realtor should be advising me on the market conditions” and “why should I pay a commission, I know plenty of people who want to buy my home”.

Well 1^st and foremost I am a professional and I earn a living and pay my bills by advising my clients about the sale and purchase of real estate. If I were to come into a consumer’s work place admire a particular item or service and say “great, I like that can I have it for free” I don’t think I would get a very good reception. Unfortunately this happens quite a bit in Real estate.

There is also a general misunderstanding in regards to the costs of a Real estate professional participation in a real estate transaction. Some consumers look at the commission as an inflated cost that no one agent can justify. I like to educate my clients explaining that the total commission does not reach my pocket intact. There are typically broker fees, expenses that are paid out of pocket by the agent (in 90% of the cases there is no expectation of reimbursement, even if a deal does not happen), Federal tax liabilities and regular expenses associated with maintaining license/ association memberships etc. 

It is just like every other business out there. You have a gross and a net compensation. The goal of every Realtor is to increase his/her sales to help average the costs of maintaining their license and professional designations.

Commissions are such a touchy subject with some consumers and Realtors that they tend not to talk about the costs associated with a transaction. In my business plan I have a mix of business. Client referred, repeat clients, new client associations through marketing and market exposure, Realtor/Broker referral business and 3^rd party relocation referrals. All of these types of clients are treated equally by me even though they all have some different fee structure associated with them. The goal at the end of the year is to achieve an income level that allows reinvestment back into the profession and earn a sustainable living.

There is a reason that Real estate plays such a large role in our current economy. It is not only the Realtor commissions that generates income, all of the inclinatory services from Property inspection, appraisal, title or attorney fees, mortgage lending, credit reporting, moving services, home improvement if you think about it one transaction generates a lot of momentum into the economy and it is no wonder we were in such dire straits when the markets ceased in 2009/2010.

So next time you are talking to a Realtor at a party or social gathering ask “how his/her business is going” instead of “what is happening in the market”. You might get a different response then what you are used to. And don’t be surprised if the Realtor asks if you are in the market and if so do you have an agent representing you interest. They are asking for a reason.

I wish you all the best of luck in 2014.

May your dreams come true, your goals be realized and your health well

Kind Regards,

Bob Kenney, Realtor

VP Turnquist Partners Realtors

Mobile/Text: 512-922-4922

Email: rkenney51@gmail.com

What is a CMA? Who do I ask for more information about pricing my home?

Hi Frank,

If you were in Austin Texas,  I would tell you to give me a call!

CMA stands for Comparative Market Analysis. There are a couple of avenues you can go to obtain a CMA based on available data in your area.

The most obvious is your trusted Realtor. Realtors as professionals belong to locale organizations that compile market data in your area. From this data a Realtor can pull together a comparative analysis of current properties on the market, Number of days on the market, number of homes pending waiting to be closed and number of home closed or sold.

Some people are surprised when they receive their CMA and a home 5 door’s away is not on the analysis’. I try to include close proximity homes in the comments section of the report but do not always use them for comparison. Why? When doing these analysis it is important to have as many features between your home (target home) and the comps (comparative) homes.

The CMA helps give the consumer a clear picture of what the value of his/her home is at a given time in the market. I try to stay as close to what an appraiser is going to be looking at the time the home is sold so there are not any surprises when the finale appraisal comes in for the new buyer. Appraisers try to keep sold comps to w/in 90 days of the appraisal but sometimes may have to go back further depending on activity in your area. It is not un-common to have some areas that do not have close by comps.

So SQFT, Location, age of home, construction, lot size and schools are the main things to begin an analysis’. From there you want to try to keep sold comps to w/in 3 months or 90 days. So I usually start with a SQFT range of 200 SQFT on either side of target property, Range in home age and I plug in elementary, middle and high school campuses and see what activity there is. I might add 30-60 days onto the sold’s if there are not enough comps.  Once I get a selection of listings I then start to analyze each listing and see how they compare to target. # of stories will have an effect, lot size, amenities etc.

Once the listings are narrowed down for active I repeat same for any Pending listings and sold listings. Most Realtors have a presentation method that is unique to them. I like to show the client the average, minimum and max values for the final selection. This will help guide the client as to how to price their home and help manage expectations on expected final sale price range.

If an area does not have a lot of comparables then the Realtor must expand the search area until they are able to come up with more listings to use in the analysis. This becomes a little more complicated because you then take into consideration what another community might have to offer then start making adjustments in comparison to the target property criteria (either up or down).

A second alternative to the Realtor is to hire a locale licensed appraiser to come in and do an appraisal in their format using their set criteria. Their analysis is sometime more subjective depending on the market data they have access to. In a lot of cases it may be the same source as the Realtor but they may also use other resources outside the locale real estate data base.

Whatever route you go you can see that this report entails quite a bit of work to make sure you get an accurate picture. Once you receive the CMA and go over it with your Realtor it is perfectly acceptable to ask questions, point out areas where you think the Realtor may have missed a property ( It is not uncommon for a client to have more direct knowledge about a neighbors recent sale) and let the realtor make adjustments accordingly. The whole purpose of the CMA is to assist you the client in determining the best list price and help determine expectations of selling price.

I would be privileged to help refer you to an experienced Realtor/Broker in your area. Please feel free to contact me by Text/Phone @ 512-922-4922 or Email rkenney@gmail.com

A happy safe and healthy new year to you all!

Regards

Bob Kenney, Realtor

Vice President, Turnquist Partners Realtors

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Fannie, Freddie Fee Hikes Delayed for Review