Austin Real Estate, like real estate in most places, sells best in the summe rmonths. Our prime selling season is nearing an end so if you are planning on selling your home soon it may be even more important to spruce things up a bit. Not to worry, we've been selling Austin Real Estate for over 25 years and we're always happy to help you out with a free consultation. To get started take a look at these helpful tips.

5 Easy, Inexpensive Ways to Add Value and Comfort to Your Home

If you've been thinking about increasing your home's value or just making your living space more comfortable, these ideas can help you start off simply. Before you start knocking out walls and renovating your roofline, consider these ways to make a big difference...cost-effectively!

1. Spruce Up Your Curb Appeal

Buyers often decide whether to look at your house before they even get out of the car. So, before you spend a lot of time and money remodeling the inside, take a good look at the outside. Washing windows, repainting trim, planting flowers and small shrubs, trimming tree branches and overgrown bushes, fixing screens, resealing your driveway, and mowing the lawn can make a big difference. Start out by making a list of 4 to 7 simple projects and then set aside an hour or two each day. In just one week, you - and potential buyers - will be surprised how appealing and welcoming your house looks when driving up.

2. Does Your Entryway Invite People In?

A cozy first impression is crucial. Now that you've boosted your curb appeal, it's time to turn your attention inside - starting just inside the front door. To make sure your entryway invites people to come in - rather than turnaround and run - try adding a wicker chair and table outside the door along with a fresh coat of paint to your foyer.

For even more impact, replace old light fixtures and update the floor in your entryway with a throw rug or easy-to-apply self-adhesive linoleum squares. These projects are inexpensive and easy enough to do yourself in just a few hours.

3. Spiff Up that Old Bathroom

Remodeling an old bathroom can make a big impact. You should start by simply de-cluttering the countertop. It's amazing how spacious even a small bathroom appears after the styling products, pictures and miscellaneous bathroom decorations are removed.

From there, you can freshen up the paint, replace that old shower curtain, add a new medicine cabinet on the wall, and even upgrade your faucet and shower head for very little money. With a little more money, you can also install a double sink or re-tile the floor.

4. Hot in the Kitchen

Renovating an outdated kitchen is practically a sure thing - as long as you don't splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: replacing the handles on your cabinets and drawers, freshening up the paint, installing new flooring, adding a backsplash, and painting or re-facing your existing cabinets. You can also make a dramatic impact by installing new countertops and even replacing your appliances. All of these projects will go a long way to making a new buyer feel at home.

5. Add a Second Bathroom

Perhaps no improvement makes a bigger impact on your family's comfort and your house's appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children.

Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one, which is an important point to consider in today's market. So, if you have a house with roughed-in plumbing just waiting for you to take the initiative, you may want to consider adding that second bathroom you've always wanted.

However, if your house doesn't have roughed-in plumbing or floor plans that called for a future bathroom, you'll definitely want to consult a Realtor to discuss how much a second bathroom will add to your home's value. After all, if you have to start moving walls and re-plumbing your house just to add a bathroom, you may find that your time and money are better spent on a handful of smaller projects that will ultimately add more impact.

Plan Ahead and Avoid Headaches

Overall, the best advice about adding value to your home is to start small, work your way up, and always plan ahead. You don't want to get halfway into a renovation only to find that you have to update your entire electrical system or that your time and effort was wasted on a renovation that doesn't add as much value as you thought. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time and money!

Feel free to contact us if you have any questions.

Take a look at the chart below, which shows how home loan rates have climbed dramatically over the last several weeks. In fact, home loan rates are at their highest levels since the Federal Reserve announced their Mortgage Backed Security purchase plan at the end of 2008. While the chart below is just a rough indicator of present rates that require points and fees to be paid, it's clear to see the dramatic climb rates have taken in recent days.

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Chart: Freddie Mac 30-Yr Fixed Rates

As we've mentioned in recent issues of this newsletter, added supply has been one of the main culprits behind the recent sell-off in Bonds and corresponding climb in home loan rates. So where is that supply coming from? First, all those refinances you've heard about lately are actually turned into Mortgage Backed Securities after they're closed, which adds more Bonds to the market. Plus, government spending plans have to be paid for somehow.so record levels of Treasury Securities are being auctioned off these days. Although the Fed has a program to purchase some of these Mortgage Bonds, the number of new Bonds simply outweighs what the Fed is able to buy - therefore driving Bond prices lower and home loan rates higher.

There was some good news for the economy as Consumer Sentiment came in at its highest level in 9 months, and Retail Sales were inline with estimates, marking the biggest rebound for Retail Sales in 4 months. There was mixed news on the Jobs front: While Initial Jobless Claims were below estimates, continuing claims rose to 6.82 million, which is another new record. And US exports fell to the lowest level in almost 3 years, as the US Balance of Trade widened in April for the second month. However, US exports should improve a bit in the coming days, as the US Dollar recently sank against foreign currencies, which makes US goods cheaper and more attractive to buy. The flip side of that coin however, is that since oil is Dollar denominated, the price per barrel rises to compensate for the erosion in the Dollar.meaning higher prices at the pump and elsewhere.

Bonds and home loan rates were able to muster up some improvement on Thursday and Friday, helped in part by news that the Paulson & Co. hedge fund is purchasing distressed debt and Mortgage Backed Securities, which will help alleviate some of the supply mentioned above. However, home loan rates still ended the week .25% to .375% worse than where they began.

Since Bond prices react negatively to any news of economic recovery, it's important to work with a knowledgeable advisor who monitors the markets every move. Let me know if you have any questions about your situation.

Tools for Complying with the Energy Efficiency Ordinance

The City of Austin’s Energy Efficiency Ordinance, effective as of June 1, 2009, requires that energy audits be conducted and disclosed for many properties located within the Austin city limits.  Below, you’ll find resources to help you understand and comply with the City of Austin’s new Energy Efficiency Ordinance. 

• Have questions about how the ordinance will affect your business?  Download our eight-page Guide to the City of Austin’s Energy Efficiency Ordinance.

 

• Review and print the City of Austin’s Energy Audit Disclosure form, which will allow you to append a property’s energy audit to the Seller’s Disclosure Form.

 

• Looking for detailed information about the ordinance?  Visit the City of Austin’s Web site for additional forms and facts.

 

• Find out which properties will not be affected by the ordinance by reviewing this exemption list.

Green Real Estate Resources

ABoR is committed to the principles of energy conservation and sustainability. We strive to keep our members abreast of new technology, education and resources as they become available. As we look to the future, we know it is essential for our membership to understand the issues relating to green building and properties, as the green building movement is changing the way consumers buy and sell homes across the country.

Studies show consumers consider energy efficiency, a key green building feature, an important factor when buying a home. While energy efficiency is not the only green building feature we will focus on, it is an important aspect when determining a consumer’s ability to afford a home. Because of the important role rising energy costs play in homeownership, ABoR supports energy conservation efforts. We also understand the gravity of protecting Austin’s unique environment.

Consumer awareness of green building continues to rise. “Green” is defined in a variety of ways and those definitions are changing constantly. Regardless of the many ways green is classified, we are aware of its impact on the real estate industry. It is our hope that this online resource will help you identify new ways you and your clients can be a part of the movement.

Visit Austin Board of Realtors  www.abor.com/about_abor/GreenRealEstate.cfm for source and further information.

Tuesday, May 19, 2009, 6:08pm MDT  |  Modified: Wednesday, May 20, 2009, 3:44pm

Denver tops on 'Today' show list of cities poised for real-estate rebound

Denver Business Journal - by Mark Harden

Denver was named America's No. 1 city on the verge of recovery from the real-estate slump in a segment Tuesday on NBC's "Today" show.

Real estate expert Barbara Corcoran, a regular guest on the show, said Denver more than any other U.S. city is "clearly on a rebound."

"It's really the perfect real estate success story," she said. "It had one of the highest foreclosure rates in the nation for years running, and now they've cut that foreclosure rate in half and they've turned the corner."

Denver, Corcoran said, has "a vibrant downtown, it has a high employment base, it has educated people, it has youth, [and] it has one of the biggest park systems in the country.

"Everything about Denver is pointing up, up up," she added. "Prices are moving up just now for the first time after seven years."

Rounding out Corcoran's list of cities poised for a real-estate rebound:

                 2. Raleigh, N.C.

                 3. Austin, Texas

                 4. Seattle

                 5. San Francisco

Corcoran said she included cities on her list on the basis of eight factors:

•                  Job growth potential;
•                  A growing population;
•                  Good weather;
•                  Lots of first-time buyers;
•                  No overbuilding;
•                  A vital downtown;
•                  A well educated population; and
•                  Foreclosures earlier than other cities.

Click here to watch Corcoran's "Today" show segment on cities on the verge of real-estate recovery.

Monthly Home Sales Report

We had a great time at our Halloween event at the IMAX movie theater last weekend.  Nearly 200 of our former clients joined us to watch Haunted Castle 3D, have some fun, and chat about Austin real estate. 

We received 15 drawings for our coloring contest, and here are the winning entries!  The two winners, Valerie and Samuel, will each receive a gift certificate to Toys 'R Us.  Thanks to everyone who entered, and everyone who came to the movie!  We had a lot of fun!