Don’t wait until it’s too late on a Short Sale

Recently, I’ve had several prospective clients contact me only days before their property is suppose to go to the foreclosure auction on the court steps. If find myself asking “why do these people wait until it is too late to contact me about listing their home for a short sale?” The answer is not a simple one. I think that there is a lot of psychology that goes into the realization that you are about to lose your home. Most people in financial distress usually put keeping their home as the last priority in making their way out of the financial issues. First on their list are their immediate needs, food, transportation, utilities and childcare. In Texas, we have an accelerated foreclosure process, the second fastest one in the US. Some of these prospective clients live in states such as California and Arizona where the foreclosure process can take anywhere from 6 months to 2 years. That is typically not the case in Texas where the entire process can take as few as 60 days. I think that by the time that some of these investors realize that the mortgage lender is not bluffing about their property going to foreclosure and that they are not going to be able to do the loan modification that they thought they would be able to do, it’s too late to save their property from foreclosure. Obviously, if there is a demonstrated financial distress and the homeowner qualifies to do an FHA short sale or a prospective buyer has put in an offer on potentially a conventional short sale, we may be able to get the home saved from foreclosure but with the last couple of calls this hasn’t been the case. Calling the Friday evening before the auction on the following Tuesday is too late. People have to realize that the mortgage banks short sale departments are not open on the weekend and the red tape that is involved with getting a foreclosure postponed can be daunting. Though not every short sale is successful, giving yourself the time necessary to work with the bank and the short sale realtor only improves your chances of successfully walking away from a property with the bank having taken the hit on the deficiency and you walking away with your sanity and peace of mind. To learn more about short sales, visit my short sale page at http://www.romeom.com/Austin_Short_Sale_Assistance/page_2182165.html .

I don't need a Realtor

This is something that I hear at least once a week when speaking to perspective clients. In the greater Austin area, there is quite a bit of new home construction especially in areas such as Round Rock and Cedar Park. Most of the home builders have a sales office in each one of their communities with on-site sales agents that are ready to assist homebuyers with the purchase of one of their homes. Given that a buyer can just walk into the model home, be wowed by the sales agent and sign a purchase contract without being represented by a Realtor, why do they even need a Realtor? The answer is quite simple. Where you may be involved in a home purchase every six or eight years, I am involved with 20-30 home purchases EVERY year. I've seen numerous examples where buyers felt that they would get a better deal from the builder if the builder didn't have to pay the Realtor's commission. The truth is that those people usually end up paying too much because they weren't aware of the potentially undisclosed incentives that sometimes aren't offered up front. Take for example a recent experience that I had with a potential client. After showing him various locations to consider, he went back to one of the builder's sales offices and asked if they purchased a home unrepresented, could they negotiate on their own behalf to get a better deal. Of course the builder agreed to this knowing that the prospective buyer didn't have access to really verify if they got a good deal or not. In this situation, the buyer ended up paying about $15,000 too much for the property. How do I know that? Because when he finally returned my calls and told me that he had already purchased a home and what he paid for it, I emailed him recent comparables that had sold for at least $15,000 less than what he had paid for! With all of those other comparables, a Realtor had been involved and had been able to negotiate a better deal than the buyer was able to do on their own. Given that the Realtor's commission is paid by the builder, then why wouldn't you agree to FREE representation to make sure that you got the best deal possible?

For more information about Austin Real Estate visit my site at www.romeom.com

Beating the Summer Housing Rush

As the weather starts to warm up and the lawn goes from being yellow and dormant to green and vibrant, if your summer plans include either buying or selling a home, then now is the time to begin your research. The last couple of months have seen a rise in interest rates as well as a rise in lending restrictions which can make financing a home more difficult. Throw in the current military operations in Libya and the tsunami and nuclear tragedy in Japan and the economic future seems a bit clouded. Typically homebuyers and sellers wait until the summer months to make a move, but this year, being a bit more proactive and planning for a late spring move might prove to be the more prudent decision for a couple of reasons. First, if you are a seller, there are going to be fewer homes to compete with. If you’re a buyer, you can still take advantage of the low interest rates that are currently available. Second, if you’re a seller, going on the market early gives you the opportunity to make any adjustments to the price or condition of your home to get it ready for the market. The idea here is not to chase the market, but to put your best foot forward once you decide to list your home for sale. I know that some salespeople may use fear or concerns as a sales tactic to push someone into making a decision, but the reality is that we are living in an ever-changing world economy and the only thing you can control are the decisions you make today.

To learn more about the Austin Real Estate market visit my Austin Real Estate site at www.romeom.com

If you sit too long on the fence, it may fall over.

As everyone knows, the housing market has faced some critical times over the last couple of years. Home values in Austin have not been so devastatingly affected as in other areas of the country but what today’s market has created is a unique opportunity for homebuyers to purchase a home at a near rock-bottom price at interest rates that hadn’t been seen in over 50 years. The bad news, is that ship is sailing away quicker than you might think. As the unemployment rate drops and the economy begins its slow recovery, you’ll see both mortgage interest rates and home values start to creep up. While this may be positive news to both home sellers and home owners, if you are in the market to purchase and are stuck on the fence, you may soon find yourself blown off the fence by increasing down payment requirements and higher interest rates. Since August of 2010, interest rates have increased nearly a full point. What this means on a typical home loan of $200,000 is a monthly payment increase of $91 or over $52,000 more over the life of the loan. Possibly of greater concern, is the possibility of the down payment requirements increasing to 5% for FHA backed loans and 30% for conventional loans. Private Mortgage Insurance (PMI) companies have already raised their minimum credit score requirements making it impossible for some people who were qualified to purchase a home two years ago to qualify today for that same loan. The point of this explanation of the mortgage market is not to instill fear into those who are thinking about purchasing a home, but rather, to help give them the extra push that they may be looking for in getting off the fence and becoming a home owner.

Visit my Austin Real Estate site for more information.

TMI = Too Much Information

As an Austin Realtor, I use technology everyday to stay in contact with my clients as well as to provide online home search tools as well as monthly real estate updates. But as our world evolves and technology plays an ever increasing role in our lives, sometimes you have to stop to ask yourself, is technology really helping or hurting me? With the majority of all cell phones now being produced and sold as “smart phones”, we literally have the world at our fingertips. You can literally do just about anything from the comfort of your car, in an elevator or even while watching a movie. I can’t tell you how many movies I’ve watched at the theatre with the annoying glow of some teenager’s cell phone while he or she is texting, tweeting or updating their online status. Also, with so much information at one’s disposal, the line between privacy and public starts to fade. Several sites such as Facebook, MySpace and Twitter have built-in privacy functions that are cumbersome and sometimes difficult to set leaving all of your private information open to anyone who wants to see it. Without thinking, people will update their status while they are on vacation or that they just made a huge purchase, leaving themselves open to professional thieves to break into their homes while they are away. Then there are those that are addicted to posting every single facet of their lives online. What they intend on eating, what they ate yesterday, the weather, the traffic report, what they were dreaming and so on. I usually end up tuning those people out quickly so as to not to get sucked into their drama or their cry for attention. The point that I am trying to make is that like all things, there is a right and a wrong way to do things. I’m not saying that my way is right, but I can tell you that no one wants to know what you had for breakfast this morning unless it’s your mother, your spouse or your doctor :)

To learn more about Austin Real Estate visit my site at www.RomeoM.com

A new year, a new set of goals

As the first days of 2011 begin, I am reminded of the goals that I accomplished over the course of the year. I am also reminded of the goals that I didn't accomplish. Though possibly difficult to believe, all of my goals are not necessarily real estate related. Don't get me wrong, I always have the long-term goal of being the most recognized name in the Austin Real Estate market, but in the short term, I have to be more realistic and more focused about the goals that I set for myself for this new year. In analyzing my victories and defeats in regards to the goals that I set out to accomplish at the beginning of last year, I find myself making a list of why I was or wasn't able to accomplish every goal I set out to complete. Some goals were probably too easy, and I shouldn't have even included them on the list, while other goals were unrealistic. I mean, did I really think that I was going to run my first marathon without training? As with any goal, it has to be specific and realistic. It has to also be time specific and measurable. In the case of my wanting run a marathon, I had those all of those parameters planned, but I never found the time to be consistent about training. The real point to my writing about goals, is to reinforce and perhaps motivate those who read my blog to plan on making 2011 a breakthrough year. Whether the goals you set are fitness, financial, family or personal goals, the important thing is to have goals and to strive to meet those goals. No one ever accomplised anything by planning to do something. Only through action and perseverance will the goals that you set, ever be realized. Unless you happen to win the lotto :)

Visit my Austin Realtor site to learn more about me and real estate in Austin.

If it is called a short sale, then why does it take so long? Part 1

This is a commonly asked question that most homebuyers stuck in the roulette wheel of a short sale ask. Five years ago, most people, including Realtors in the Austin area may have never even heard the term “short sale”, but today, it is as common a real estate term as foreclosure or bank-owned. It is difficult to understand all of the inner complexities of why a lender would choose to sell a property for less than what they are owed, but a simple explanation would be that a lender may be motivated to take a short sale loss, if they know that that loss is ultimately going to be covered by the government with one of the federally backed programs such as FHA or VA. If the home is located in an area with many foreclosures, where the lender may not be able to recover all of the costs associated with foreclosing on a property, the lender would rather sell the property short of what they are owed and cut their losses rather than gamble that there may or may not be a buyer for that particular property down the road.
So the next question might be who qualifies to “short sell” their home? Though are various reasons, the most common is:

Seller is financially strapped

- May have lost their job or a significant decrease in income
- Might be a divorce situation
- May be due to poor health and/or medical bills
- Must move due to job transfer or some other reason and cannot make up the difference between what his house can sell for and the higher amount that he owes
- Death in the family
- Many other reasons …..

Loss of equity is NOT a valid cause for a short sale

In order for the home seller to qualify for the short sale process, they basically have to go through the process of applying for a mortgage in reverse. Whereas when a borrower is trying to prove their financial worthiness to obtain a loan, a short sale seller is trying to prove to the lender that they are no longer financially capable of owning the home. Of course, if the home seller made fraudulent statements on their original loan application, all bets are off and the home seller may be liable for damages. In some cases, home sellers involved in a short sale may be encouraged to speak to a tax specialist or attorney in discussing some of the possible legal and tax liabilities that may result in the short sale of a property. All in all, it is not an easy process.

So what can a home buyer looking at possibly purchasing a short sale expect? In my next blog, I’ll describe the hurdles that the typical short sale home buyer can expect during their short sale purchase. Visit my Austin Short Sales page for more information.

Being a Realtor on Facebook without sounding like a Realtor

This is the challenge that you’re faced with when you’re an Austin Realtor and you’re competing with 9,000 other local Realtors for the same client pool. With the evolution of social media such as Facebook and Twitter, businesses, including Realtors are scrambling to take advantage of these “free” online tools to stay in contact with current clients as well as to try and attract new ones. Social media has quickly become the mainstream method of communication with 20 to 40 year olds. In fact, in a recent article, many were surprised to see that Facebook had more web traffic than even Google. The only issue with social media versus more traditional media such as television and radio is answering the question of how long will social media be fashionable? It wasn’t too long ago that MySpace was the internet’s darling. I know of several people and businesses that spent so much time developing their MySpace pages that once the site lost the internet’s favor, all of those efforts went by the waste side. Though there is no cost involved with setting up a Facebook account, it certainly isn’t “free”. You can literally get sucked into spending countless hours loading widgets, updating your status, checking out your friend’s status, their friend’s photos, planting virtual crops, watering other’s crops and even sending out “virtual” gifts. With all of the tools at your disposal, it’s difficult to not bombard your audience with so much real estate information that after a while, people start to tune you out because they think that all you ever talk about is real estate. That’s where being balanced about what you post, how often you post and what you post about comes into play. As a Realtor, I’m constantly in business mode, but I want others to know that I do have a life and interests outside of real estate. After all, social media should be sociable right?

To learn more about Austin real estate visit my Austin Realtor website.

I can put you on the first page of Google .....

As an Austin Realtor I hear this promise at least 3 times a week from different telemarketers calling me to GUARANTEE that my website will be found on the first page of Google's organic search results for a low monthly fee or a one-time up-front charge. Most often than not, they leave out the fact that it may take years or maybe even never before that goal is realized. What might you ask; does this have to do with Austin real estate? The truth of the matter is that the more importance Google places on a website, the more likely users are bound to find it when searching for key terms such as homes for sale in Austin Texas or who is the best Austin Realtor? In terms of exposure for real estate listings, more potential buyers will view the featured listings on my website and will be more likely to view the pictures and virtual tours if Google likes my site and puts it on the first page of its search results.

The real estate market in Austin is highly competitive. With over 8,000 licensed Realtors in Austin, each with a website and in most cases, multiple websites, trying to dominate Google rankings along with Yahoo and Bing can be a full time job. Knowing that currently 70% of all internet users use Google as their primary search engine makes online search engine optimization (SEO) to be more geared toward making Google happy with your site to appear on the coveted "first page of Google". Most of these companies that offer these guarantees of putting your web site on the first page of Google are either trying to sell you paid advertisement space or pay per click as it is commonly known or they are utilizing "Black Hat" techniques which will only yield short term results and may ultimately get you banned from Google altogether, commonly known as the "kiss of death" in SEO terminology. Even worse, some of these companies are located overseas and are trying to obtain your personal financial information to steal your identity. Definitely, the old adage "if it sounds too good to be true, then it probably is" rings as a truism in this situation.

As I mentioned before, competition in the Austin real estate market is extremely fierce. Only a steady stream of relevant information on your website, useful blog posts, timely Twitter tweets and interesting Facebook posts will gain you any favor with Google so that you may one day find yourself on the first page of Google!

For more Austin Real Estate information visit my Austin Realtor site.

Setting realistic expectations when purchasing an older home.

I love being an Austin Realtor and working with all types of homebuyers, but I have to say that sometimes it’s hard to work with first time home buyers who have spent too much time watching HGTV and feel like they know everything there is to know about purchasing a home and real estate in general. I just had a listing of mine fall out of contract because the homebuyer expected the 25 year old home with amazing panoramic views to be in near perfect condition based solely on the sales price. If you’ve ever purchased a home before, especially a resale home, you know that it is always a good idea to have the home inspected prior to closing to identify issues and safety and health hazards that may exist. The home inspection is critical in being able to obtain insurance coverage as well as qualifying for a home service contract to further protect your investment. One thing to keep in mind during the inspection and reporting process is that no home is perfect. Even new homes that are inspected by a third party inspector will rarely be 100% issue free. The primary role of the inspector is to find things wrong with the home and report those deficiencies to the homebuyer. The list of deficiencies are then used to either renegotiate the terms of the contract, or if bad enough, to simply walk away from an unsafe or problematic home by exercising the unrestricted right to cancel during the option period. The way the information is presented by the inspector in the inspection report and in person is very similar to the bedside manner of a doctor delivering their diagnosis. It can be truthful and informative, yet shouldn’t make a mountain out of a molehill. An example of this would be that homes built in the 1980’s were not required to have GFI outlets in the kitchen, but under current code standards, new homes are required to have those installed. Inspectors are required to report this “deficiency” on their report, but they should make it a point to express to the homebuyer that this is typical when purchasing a 25 year old home. Though this does present a minor concern, this is a relatively easy fix that can be negotiated into the revised sales price, a repair allowance or the seller can have it updated or repaired prior to closing. To simply walk away from the house because the inspector made it seem that the house is a possible electrical fire death trap because of electrical outlets not being compliant with current codes is neither reasonable nor a wise expectation when searching for an older home. Unfortunately, some property inspectors have gotten a bad reputation and are no longer recommended by Realtors or other real estate professionals not because they are too accurate or honest, but because they feel it necessary to justify their inspection fee by pointing out truly useless deficiencies such as missing door stops and chipped wall paint. Again, I’m all for making sure that the buyer has accurate and complete information in making a decision, but sometimes too much information can cause undue worry and kill an otherwise great deal.

For more real estate information, visit my Austin Real Estate website at www.romeom.com

Rumors and Facts about new Austin Tx Developments

As an Austin Realtor, I try and stay up to date with all of the news and information regarding economic developments that will affect Austin real estate values. Over the last couple of years, there have been many rumors regarding several large companies relocating to Austin and several large scale commercial developments that would help bring Austin into the nationwide spotlight. Some examples of confirmed projects that started as rumors include the new $360 million Schlitterbahn water park resort that is due to begin construction next year in the Cedar Park area that is expected to be built in four phases and will include a convention and retail center. Another verified planned development includes a $250 million Formula 1 (F1 Racing) facility to be constructed in time for the 2012 race year. Though the location for the facility has not been announced, rumor has it that it will be in the Dripping Springs area. Other rumors about projects that have come and gone or might still be in the works include a Six Flags amusement park in the Liberty Hill area. A good friend of mine that works as an estimator for the largest fencing company in the area had told me that the Six Flags corporation had already purchased the land and was getting bids on various phases of the buildout. This was before Six Flags filed for Chapter 11 bankruptcy which more than likely killed those plans. Another more recent rumor is that Disney has been looking at a tract of several hundred acres in the Bastrop area in consideration of building a Disney amusement park. Again, these are rumors that have not been substantiated by any official information from Disney or government officials. The fact that Austin is only 1.5 hours from San Antonio, and 3 hours from the Houston and Dallas areas makes Austin an ideal location for major commercial developments that residents from the entire state can enjoy. So you might ask yourself why would I as a realtor in Austin make an effort to fuel some of these rumors that are floating around? It's not to try and speculate on the potential increase in local property values or to cause people to want to move into the Austin area, but rather, my intent is to provide a different perspective to those living in Central Texas that may have never considered the possibility or probability that Austin is on the verge of becoming a major influence on the economic growth of not only Texas, but the U.S. as well.

To learn more about Austin real estate visit my Austin Realtor website.

Life as an Austin Realtor

As I'm watching the television show "Two and a Half Men", I can't help to laugh how Evelyn Harper, the main characters' mother is portrayed as a blood sucking Realtor. In this particular episode, her son Charlie, played by Charlie Sheen, is trying to connect with her emotionally, but shortly into the conversation, she receives a call from a local cardiologist letting her know that his patient, who lived in Beverly Hills just died. Without delay, Evelyn cuts the conversation short and flies out the door before "the rest of the blood sucking vampires" hear about the potential listing. Though, my life as an Austin Realtor may not be as glamorous or dramatic or even comical as a Realtor in Beverly Hills, I have to ask myself "Do I cut people off or put important conversations on hold or miss important events for the sake of a potential client?" In all honesty, I more than likely have missed some of my son's school events or rescheduled lunch with my wife in hopes of getting a new listing or client. I've even come to accept that Sundays and evenings are part of the "normal" working hours as a Realtor in Austin. I know that many other Realtors will argue or comment that boundaries must be set, and I completely agree with them, but the trouble I have is finding where those boundaries are. Trying to find the definition between "work" time and "personal" time is something that I've always struggled with. Part of my coping mechanism has been to befriend all of my clients so that the time I spend with them either on the phone or in person feels more like recreation than work. Don't get me wrong, there is no replacing spending time with my family or close friends, but I find that by really getting to know my clients, I better understand their needs and wants as well as it helps build a lasting relationship, far beyond the closing of the sale. As my son gets older (he's currently 4) I know that he is going to demand more of my time to make sure that he never feels neglected or ignored. I don't think that he's going to understand when I try to explain to him that Daddy has to go to the sports bar for a "networking" event or that I am constantly on the computer working on a deal or making sure that my website is the best that it can be. Austin is a highly competitive and technologically advanced business center. In the Austin real estate market, it is a constant effort to make sure that you are on the leading edge of technology in reaching prospects, promoting your listings and making yourself "relevant" to not only the general public but to Google, Bing and Yahoo as well. I used to think that being on Facebook, Twitter and YouTube was for solely for social and recreational enjoyment, but I've come to learn and incorporate those sites as a new channel of communication to reach my family, friends, clients and associates to let them know that I do have interests and a life outside of real estate. All in all, I love being an Austin Realtor, I just hate having to call it work.

Visit my austin real estate site at www.romeom.com