So many clients are asking if they should sell now or wait, buy now or wait. Selling – I know that it takes much more work for the seller to prepare the home but it is the best way to sell your home faster than the competition. Buying- in general, depending on the neighborhood, a buyer can get a good buy – but properties are not given away in Austin like in some other cities. And we see investors buying aggressively and often with cash.
According to MLS, 1,891 single family homes were sold in the Austin area during May 2011, 8 percent fewer than in the same month in 2010. During the same time, the median price for a home was $ 198,100, four percent more than in May 2010. In May 2011 homes spent an average of 81 days on the market, 27 percent longer than in May 2010. But this is the shortest days-on-market figure since October 2010. In the same period, we had 3,127 new listings, two percent more than May 2010; and 9,744 active listings, 13 percent less than May 2010. In addition, we had 2,156 pending sales which is 53 percent more than in May 2010, and the highest pending figure since April 2010.
In the residential leasing market, the volume of residential leases in May 2011 was 1,269, four percent more than in May 2010; and the median price for lease was $ 1,250, four percent more than for the same month last year.
You can find an area by area category of sales on my website www.elisabethomes.com by clicking on “Austin’s Most Recent MLS Figures”.
BUYING A HOME
Before we start looking, we will make sure you have the most appropriate loan for your situation, have obtained a Good Faith Estimate; consider Discount Points to buy down the mortgage – amounts can vary significantly – this is a one-time charge and normally deductible as mortgage interest; be informed about cost for originating the mortgage which includes a variety of fees; check on all closing costs which may include hazard and mortgage insurance, interest accrued on mortgage between closing and the end of the month, HOA fees, transfer fees; and have all taxes prorated.
Before we make an offer we want to be sure to know about the following: what personal property in the house will be included or excluded; who will pay for the repairs; what is in the seller’s Disclosures; what is the seller’s obligation to maintain property between contract and closing; what are the consequences if buyer or seller does not comply with contract; how can you, the buyer, get out of the contract without penalty.
Some of the issues we will discuss when you get ready to purchase a home.
Some buyers mistakenly believe that there is a formula for offers- a certain percentage of list price. The offering price depends on the basic law of supply and demand. Even in a buyer’s market, you may be looking at a home that has competing offers. If demand is weak, an offer lower than the asking price may be in order. In many cases, we have an offer, followed by one or several counteroffers, all conveyed by your agent and whenever possible in writing. We must follow the ”Time is of the Essence” rule – as long as we are negotiating and submitting counters, another offer can come in and may be accepted.
During the option period, I will urge you to have an inspection performed; look at the Austin Energy Audit that we will hopefully have received from the seller; check on surveys; check with lender on the appraisal; perform title reviews; if necessary have foundation, sewer and other inspections.
SELLING YOUR HOME