Since a picture is worth a thousand words, here is the most recent drought map, from the US Drought Monitor.

Yeah, dark red is bad, really bad.

Drought is Classified in 5 Levels

The 5 levels used to describe how severe a drought is are:

• D0: Abnormally Dry
• D1 Drought: Moderate
• D2 Drought: Severe
• D3 Drought: Extreme
• D4 Drought: Exceptional

Looking Back on The Texas Drought Levels from May 2011

Compare the map above to the drought levels from May 2011:

Shopping for a home in Austin Texas?

The tax rates here can be confusing to folks moving in from other parts of the country.

Property Tax Rates in Northwest Austin

A property can be taxable by different governmental entities such as Austin Community College, Austin Independent School District, or a utility district. For reference, the complete chart for the Travis County 2011 Tax rates can be found on the Travis County Website. Since parts of NW Austin are also taxed by Williamson County, you might also refer to the 2010 Williamson County Tax Rate Schedule.

Confusing, isn’t it?

Northwest Austin Property Tax Examples

Let’s talk specifics.

In the MLS (Multiple Listing Service, known as ACTRIS here) area called NW (for Northwest), the tax rates for homes currently listed for sale range from 2.08 to 2.6444. Of the 145 homes currently listed for sale and the tax rate field is populated, the median tax rate is 2.4699. (Median = the one in the middle where half are higher and half are lower.)

Here is an example of the estimated tax schedules for two homes NW Austin. One is listed for sale for $194,000 and the other is listed for sale for $195,000.

Note that the estimated taxes for these vary by $351. (One is $5010 and the other is $4659). These estimates are based on the assessed values of the properties which are supposed to be the same as market value, but might not be!

You should also note that each of those two examples show that different entities are assessing taxes on these properties.

And note that the actual tax may vary in the end, depending on whether or not the homeowner qualifies for any Travis County property tax breaks or property tax exemptions. Or perhaps they qualify for Williamson County tax breaks or tax exemptions.

The Impact of Different Tax Rates on an Austin Home Owner’s Monthly Payment

On a $200,000 home, if all $200,000 is taxable (depends on whether or not the home and/or owner qualify for any exemptions):

• A tax rate of 2.08 would mean $4,160 in property taxes per year (or $347 per month)
• A tax rate of 2.644 would mean $5,288 in property taxes per year (or $441 per month)

The median price of a home for sale in NW Austin as of September 23rd, 2011 is $232,917. At the median tax rate of 2.4699, that would suggest a yearly tax of $5753.

If you’ve done the math on what your new mortgage is going to run, you now know that the property taxes are going to add up to a non-trivial part of your cost of ownership.

What You Need to Know About Austin Tax Rates

The really important thing to keep in mind is that the tax rates vary by area.

As of September 27th, 2011 there are over a hundred homes for sale in Austin with list prices between $195,000 and $200,000.

Go Right to the Homes for Sale In Austin for around $200,000 (Data updated automatically – current listings)

Let’s take a quick peek at how the inventory (number of available houses) and median sizes and median prices differ by large market area around Austin. Remember that the median is the number where half of the numbers are bigger and half are smaller.

Area	Active	Median Size (Range: Smallest - Largest)	Median Days on the Market (DOM)	Median Price for the Region (Number of Listings)
East Austin	19	1329 (537 - 3876)	102	$155,000 (418)
North Central Austin	16	1826 (800 - 2488)	90	$195,000 (259)
Northwest Austin	13	1703 (1150 - 2396)	58	$302,500 (346)
South Austin	21	1582 (1053 - 2479)	107	$216,417 (326)
Southeast Austin	4	1745 (1285 - 1923)	55	$140,000 (151)
Southwest Austin	12	2066 (1435 - 3482)	48	$263,400 (262)
Austin - West/Westlake	2	1413 (1400 - 1425)	48	$883,578 (313)

You can see from this that:

Steiner Ranch is an established neighborhood located in northwest Austin, off of 620.

This one isn't for sale in Steiner Ranch but this home is typical for the subdivision - nice attention to detail.

Most homes have masonry (brick or limestone) on all four sides, which adds to the character and appeal of the area. The neighborhood boasts a resort-like lifestyle and exceptional hill country views.

Points of interest include The University of Texas Golf Club, and Lake Travis.

Steiner Ranch Real Estate Activity For January 1st, 2011 to June 15th, 2011

Houses are selling well in Steiner Ranch in 2011:

Steiner Ranch Homes for Sale

Homes for Sale in Steiner Ranch for under $300,000
Homes for Sale in Steiner Ranch from $300,001 to $400,000
Homes for Sale in Steiner Ranch from $400,001 to $700,000
Luxury Homes for Sale in Steiner Ranch for over $700,001

Typical Homes in Steiner Ranch in Austin Texas

(note: these homes are NOT for sale – they are examples of homes in this area of Austin.)

[View with PicLens]

Steiner Ranch Schools:

Steiner Ranch Elementary
4001 Quinlan Park Rd
Austin, TX 78732
512-570-5700

Laura Welch Bush Elementary
12600 Country Trails
Austin, TX 78732
512-570-6100

Canyon Ridge Middle School
12601 Country Trails
Austin, TX 78732
512-570-3500

Cedar Park High School
2150 Cypress Creek
Cedar Park, TX 78613
512-570-1200

River Ridge Elementary
12900 Tierra Grande Trail
Austin, TX 78732
512-570-7300

Vandegrift High School
9700 McNeil Drive
Austin, TX 78750
512-570-2300

The typical commute to downtown Austin is approximately 45 minutes.

Google Map of Steiner Rainch Austin Texas

View Larger Map

(All data from the Austin Board of Realtors.)

Let’s look at a sampling of the properties in Austin for sale around $350,000.

Central Austin Real Estate Info:

Central Austin Homes For Sale Between $340,000 and $360,000

• The median price for the 345 homes for sale in Central Austin as of June 19th, 2011 is $549,000. The median size of these homes is 2,188 square feet.
• 292 homes have sold in Central Austin since January 1st, 2011 for a median price of $427,000 with a median size of 1,792 square feet.
• Only 11 homes are for sale between $340,000 and $360,000 in Central Austin as of June 19th, 2011.

East Austin Real Estate Info

East Austin Homes for Sale Between $340,000 and $360,000

• 457 homes are currently for sale in East Austin as of June 19th, 2011, with a median list price of $159,000 and a median size of 1,480 square feet.
• Of these 457, only 3 are listed for sale between $340,000 and $360,000.
• Since the beginning of the year, 431 homes have sold in East Austin, with a median selling price of $135,000.

North Central Austin Real Estate

North Central Austin Properties for Sale Between $340,000 and $360,000

• 372 properties have sold in North Central Austin since January 1st, 2011 (to June 19th 2011). The median sales price was $188,500 and the median size was 1,552 square feet.
• 6 properties are for sale between $340,000 and $360,000 in North Central Austin as of June 19th, 2011.

Northwest Austin Properties for Sale Between $340,000 and $360,000
South Austin Properties for Sale Between $340,000 and $360,000
Southeast Austin Properties for Sale Between $340,000 and $360,000
Southwest Austin Properties for Sale Between $340,000 and $360,000
West Austin and Westlake Properties for Sale Between $340,000 and $360,000

Yes.

A condo loan requires both the buyer and the condo association to qualify.

Even a highly qualified buyer may not be able to purchase a condo, if the condo development is not as financially stable as a lender requires.

Some Austin Condos Won’t Qualify

Austin has a lot of condos, including older developments and newer ones dotting the downtown skyline.

In August of 2010, the Austin Business Journal reported on the failure of the Pecan Place Condominiums near 183 and Texas 45 in Northwest Austin. Half of the 29 townhouse condos had sold but the remaining ones were in various states of completion. Other developments have also made the news, in different stages of failure or distress.

In situations like those, even if a borrower had really really wanted to buy one of the condos, condo financing would have been impossible to obtain – the financial health of the developments was not ok.

Other condo developments, of course, are doing just fine.

Austin Condo Sales for 2011 – through June 13th, 2011

Between January 1st, 2011 and June 13th, 2011:

Make sure you know which condo developments are doing well when you go shopping for a condo so your condo mortgage will be less likely to stall the deal. FHA loans for condos are also different from regular home loans, or non-FHA condo mortgages.

Work with an Experienced Lender for Your Condo Mortgage

Because a condominium loan is more complicated, make sure that your mortgage broker or bank loan officer is experienced in the ins and outs of condo financing.

Qualify mortgage professional by asking questions like these (and take notes!):

Austin Condos for Sale

Condos for sale in Austin from $0 to $100,000
Condos for sale in Austin from $100,001 to $150,000
Condos for sale in Austin from $150,001 to $200,000
Condos for sale in Austin from $200,001 to $275,000
Condos for sale in Austin from $275,001 to $350,000
Condos for sale in Austin from $350,001 to $500,000
Condos for sale in Austin from $500,001 to $800,000
Condos for sale in Austin over $800,001
Foreclosed Austin Condos

Want To Search for Other Properties in the Greater Austin Area?

Search ALL Properties listed with the Austin Board of Realtors

We’ve been browsing the local small shops this week, especially those on South Congress.

SoCo, for those not from Austin, is the ultra-hip, ultra-funky, ultra-happening spot south of downtown.

There is stuff in them thar stores you won’t see any where else – ranging from very urban, locally-made wares, to throw-back stuff cleared out of grandma’s attic that is now all hip again.

Which reminded me – sometimes one person’s trash is another person’s treasure.

Sometimes, one person’s individual thing can become part of a really cool collection when it finds other things of it’s kind.

Where to Find The Most Interesting Junk in Austin Texas

uncommon OBJECTS is one of those stores you are inexorably drawn to, perhaps by the fascinating stuff in the windows, or the fact that people are swarming in and out, all day every day. One might call it an antique mall in another town, but on SoCo, it is anything but.

In a store packed to the gills with old stuff, the art and history, and nostalgia run rampant. Displays are meticulously arranged, showcasing antiques and old glassware, and collections of vintage cameras and all sorts of other stuff.

And that is coming from someone who HATES CLUTTER.

Transcendent Junk

On the website for uncommon OBJECTS they refer to the shop as a “one-of-a-kind emporium of transcendent junk”.

That description is spot-on.

No Photographing the Good Stuff

I had to get special permission to take photographs, since they generally do not allow photography in the shop.

Probably because they’ve been mentioned in the NY Times, Elle Decor, Country Home, Harper’s Bazaar, and of course, Texas Monthly.

I can see why photography is forbidden – the aisles are narrow, stuff is stacked up everywhere, and the place is crowded, really crowded. Crowded with people just as fascinated with it as we were.

People just standing there mouths agape, or calling out to their friend in the next booth over to come check something out. People who thought they’d just poke their head in for a quick look and found themselves spending an hour just browsing.

Seriously, this is some crazy cool stuff.

Go Visit, Decorate Your Space

If you live anywhere near Austin, you need to go visit. The shop is open daily from 11 to 7, and Friday and Saturday from 11 to 8.

Dig Out Your Own Treasures, Or Grandma’s

Do you have stuff that should find a new home?

If you’re helping someone get their home ready to sell, you might be tasked with helping clean out the attic, the garage, the travel trailer parked behind the house covered with cobwebs.

When you find yourself in that position, keep places like uncommon OBJECTS in Austin Texas in mind. You might find a new home, or a buyer for some of the better stuff.

What To Look For When Clearing Out The Attic

Keep an eye open for stuff that might actually be pretty cool, if it were in a different setting.
Things like:

The less mass-produced, the better.

And, of course, the better the condition, the better your chances of sending it to a new home other than Goodwill. That being said, sometimes even ratty tatty stuff can be valuable, if it finishes off a set, or was not as commonly available as other stuff from an era.

About the photography:
These photos were taken with a Canon 5D Mark II and a 24-70mmL lens. The shop is fairly dark, so all of the photos were taken a really high ISO, like 5000 and the lowest shutter speed I could do while hand-holding (1/50 or 1/60). It wasn’t possible to set up a tripod.

Where to Find South Congress (SoCo)

View Larger Map

Looking for a new neighborhood in Austin Texas?

Check out the Austin Crime Viewer (Austin Crime Map), maintained by the APD.

You can plug in an address and find out what has been happening in and around the neighborhood.

Buying a Home in Austin Texas

When you decide to buy a home in Austin, Texas (or anywhere, really), you need to do your Austin neighborhood research.

For liability reasons, your real estate agent shouldn’t be your main source of information about the safety or suitability of a neighborhood, you’ll have to do a lot of research yourself.

Read The Bad Neighborhood: Have You Seen This Guy?

Search for homes in River Place, Austin Texas

Limestone, mixed stone, custom iron work doors and gates, sweeping Hill Country Views.

All of these and are more are par for the course for homes in River Place, off 2222 near 620 at the western edge of Austin, Texas.

River Place Home Sales for 2011

As of June 12th, 2011 for River Place in Austin Texas:

Of the 40 homes that have sold:

Homes in River Place are Selling Quickly in 2011

With 31 active listings, we have less than 4 months of inventory in River Place.

More About River Place Living

The homes in River Place are part of the Leander Independent School District.

The Property Tax rates run about 2.5% for this area – some sections are a little lower and some are a little higher.

3/4 of the homes in the area were built between 1991 and 2000. Many new homes are still under construction, including several in the exclusive area along the Lake Austin on Big View Drive.

Homes in this area have exceptional attention to detail, with mixed-stone exteriors and high-end front doors. Many also have beautiful iron balconies and cedar garage doors.

The River Place Country Club has golf and tennis and fitness memberships for families and corporations.

Images of the River Place Subdivision

(note: these homes are NOT for sale. They are pictured here to represent the types of homes that are located in this area.)

[View with PicLens]

Google Map Location for River Place

View Larger Map

2011 is almost half over, but you can still be a home owner by the end of the year.

You don't need enough money to buy a castle, just enough to buy the home you actually want to live in.

It’s All About the Money

To buy a home, you have to look at the money, first, as un-fun as that may be.

When you know your numbers, you know what your options are.
Here are the big numbers you need to know:

The More You Know, The Better You Can Plan

Now, you should call a lender.

Make an appointment to chat with a local lender on the phone. You will have good information at your fingertips from your homework above, and that will make the conversation easier.

The lender will run a credit report, take your financial profile, and will let you know how much you can afford.

If you can’t currently qualify, the lender can tell you the basics of where you fall short. You will then know if you need to save more, fix some credit problems, pay down some debt, etc.

If you don’t know any local mortgage brokers or lenders, send me an email at Alison@FindRealAustin.com and I’ll pop you over a few contacts to call to get you started. You don’t have any obligation to use any particular lender – this is just to get you in the game so you’re prepared when you are ready to buy a home.

When You Know Your Numbers, You Can Go Shopping

Once you have a good idea of your numbers, you will be much more successful when you go shopping for a home.

You might be surprised that with interest rates so low, homes are much more affordable than they used to be, even though many real estate areas of Austin are pretty hot this summer.

You can find all of the homes for sale in the Greater Austin Area using our home search tool.

Escrow must close before you can call a place like this home.

Hopefully you answered, “no”.

An Escrow Account Keeps Everything Straight Until The End

When you buy a home in Texas, an escrow account is opened up for the duration of the contract, usually with a Title Company.

The Title Company, a neutral third party that doesn’t represent either the buyer or the seller in the transaction.

The escrow account is where the money for the transaction is held until everyone has done everything they are supposed to do for the purchase of the home to close (which is how we refer to the closing of the escrow account).

This avoids all sorts of problems with people writing checks for fees and title policies, and property taxes, and so on that are then sent all over the place for the transaction. Instead, it all goes into the escrow account to be held by the Title Company until it is time to pay out the funds to all of the right places.

An Example of How Escrow Works

For example, when you write an offer to purchase a home, you also write a check for the earnest money deposit.

This is a deposit you make that shows your interest in the home (how “earnest” you are about buying it), that encourages the seller to enter into a contract with you. This money goes into the escrow account, not directly to the sellers.

The sellers don’t get your money until you get their house.

Funding the Escrow Account

In the last few days before a home purchases closes, a lot of money goes into the escrow account:

The Title Company then figures out who gets what out of the money in the account.

Closing Escrow

When all parties to the transaction have done what they are supposed to do, and all of the paperwork has been done, escrow can close. The Title Company, if they are in charge of the escrow account, handles the closing and makes sure all of the paperwork is in order and everything has been signed.

Escrow, Simplified

Basically, everyone puts what they owe in, and get what they are owed out, with the Title Company keeping track and taking the money in and paying the money out.

$1025 per month can cover the mortgage, taxes and insurance on a $150,000 home in or around Austin, Texas.

That assumes you have good credit and can put down 20%.

The Estimated Numbers for Buying a $150,000 home for $1025 Per Month

If you have less than 20% to put down, or your credit isn’t the best, there are still ways to get you into a home.

(4.75% is a typical mortgage rate as of June 9th, 2011. This will change – up or down – over time.)

Where Can You Find a Home for $150,000 or Less in Austin, Texas?

Here is a sampling of the homes you can find in Austin for $150,000 and under. To search for more like these, you can use the home search feature of FindRealAustin.

Great Articles for Getting Started for Buying Real Estate in 2011

You should read these articles:

This home is not for sale - this type of home is typical for the subdivision.

Beautiful landscaping in front of a home in the Ranch at Deer Creek

2011 Sales Data Through June 6th, 2011

Wouldn't you like to sip a nice tall glass of tea on a front porch like this one?

What Are the Monthly Payments on a House in The Ranch At Deer Creek in Cedar Park, Texas?

Here are some numbers for purchasing a home in the Ranch at Deer Creek in 2011.

For a $300,000 home (the median price):

• If a buyer can put 20% down ($60,000)
• $240,000 would need to be financed
• Taxes at just under 2.8% per year would run about $8400
• Insurance might be about $1,100 per year
• A 30 year mortgage at 4.75%, including taxes and insurance would be just under $2,045 per month.

What are the Homes like at The Ranch at Deer Creek?

Most of the 635 homes at The ranch at Deer Creek at the western edge of Cedar Park in Travis County, Texas, were built between 2001 and 2007.

Homes range from just over 2,000 square feet to about 5,000 square feet. The developers of this subdivision left many of the Texas Live Oak trees in place, which means the area has a lot of mature trees as well as smaller ones planted when the houses were built.

Many homes have limestone and brick on the exterior.

Open Space at the Ranch at Deer Creek in Cedar Park, Texas

The Ranch at Deer Creek in Cedar Park, TX: the Google Map

View Larger Map

Northwest Austin Homes are selling at a nice clip this year.

For the first 5 months of 2011:

Buying Northwest Austin Homes

Interested in buying a home in NW Austin this summer or fall?
Read these articles, then give me a call – Alison Shuman (512) 585-4758

Gracious homes built in the 1980s are typical for Northwest Austin.

Want to pay top dollar for this? Yeah, me neither.

It will also get you off the list of most home buyers, and may cost you more than fixing what needs to be fixed.

8 Reasons Not To Sell a House “As Is” in Austin, Texas

You know all of that work you think is too expensive and overwhelming? Buyers think the same thing – and even more so.

What does the typical buyer think when they see a house that obviously needs work?

• Some won’t even put it on the list to go see. They didn’t like the pictures and think it is “ugly”.
• Others might want to see it – and will want a bargain-basement price to compensate for “all of the work” that needs to be done.
• Most buyers have no idea what it costs to fix or repair things. Leaving that up to their imagination can make an inexpensive repair seems like a really expensive one.
• Repairs that must be done before a home is “safe and sound” can disqualify a home for an FHA loan if they aren’t done prior to closing.
• Financing is harder than ever to get in 2011. Buyers that are already scraping together 20% down plus closing costs don’t want to use their additional savings for repairs – they want to use them to make the place feel like home.
• Investors who seek out “As Is” homes want to buy at a discount, often 70% or less of as-repaired market value.
• Even houses that go under contract “As Is” are still going to be inspected. If the seller won’t pay for repairs, especially repairs that are safety-related, the house is likely to fall out of contract. Meaning: the buyers can cancel the contract during the Option Period in Texas.

  When this happens, and the house goes Back on the Market (BOM), other buyers and their agents will be wondering what is really wrong with the house. If the seller knows of needed repairs, they must be disclosed, making it even harder to get a good offer.

• “As Is” houses rarely compare well to the competition, and that means the competition will sell first. Then, as the “As Is” house sits on the market for weeks . . . months . . . other houses come up for sale, go under contract and close . . . to be replaced by more-attractive fresh listings.

Still Want to Sell Your Home “As Is”?

Take a few minutes and read these articles.

If you do nothing else, at least make sure your home is squeaky clean and well-lit. That alone will make a huge difference in whether or not it sells.

Price it right so it doesn’t sit and get old.

This East Austin gem is NOT For sale: But would you know how to price this for the local market?

FSBO Pricing Don’ts

FSBO Pricing Do’s

Want to buy a home in Austin in 2011?

Do it right, and get into the home you want at a price you can afford.

If you want to own a home like this, you need to get your ducks in a row, first.

The 9 Basic Steps to Home Ownership in Austin

Can you spot the big-ticket repair items on this home? (No, it's not for sale - it's for illustation)

Get a good team, and work closely with them.

The Big 3 Mistakes for Austin Home Flippers

These three mistakes will kill the profitability of your flip.

What You Need to Know for Flipping for Profit in Austin

If you’re going to flip houses in Austin, keep this in mind:

Get Alison Shuman on Your Team

If you want to flip homes for a profit in Austin, you need a good agent. Give me a call – (512) 585-4758

Drought tolerant plants help keep water bills down and are more appealing to eco-consciousbuyers

Unless you count the value you get from using the upgrades.

Big-Ticket Upgrades, Low-Value Returns

Home upgrades are always a gamble.

Here are some updates that cost big bucks that you probably won’t get back:

• Extensive Landscaping, especially with water-hogging plants:

  Buyers like to see a nicely-maintained yard. Clean edging, and the absence of piles of junk and yard debris are a big plus when you go to sell your home. You might even get more people to come see your home if the landscaping is nicer than other properties.

  Unfortunately, if the landscaping has lots of fancy planting beds, stone-work, and high-maintenance plantings, you probably won’t get back the money you spent to put that all in. If the landscaping requires lots of water, especially when so much of Texas is in a stage 4 drought this summer (2011), you may lose buyers that don’t want to spend the time or the money to keep it up.

• A Swimming Pool

  A swimming pool can cost $30,000 to $150,000 and up to put in. If the home is on a small lot, it can eat up most of the back yard. Pools take time and money to maintain. Over time, they need more repairs, and the decking needs more maintenance.

  Buyers tend to fall in to two camps: those that really want one, and those that really don’t.

  Even if you sell to someone that is thrilled to have the pool, you will recover much less than you paid to have it installed.

• Upgrades That Are Too Fancy for the Area

  Many of the subdivisions surrounding Austin are full of homes that are similar to each other: similar in size, in upgrades and in style. If you go overboard and put in upgrades that are way fancier than the other homes in the area, you are not likely to see a return on your investment when you go to sell.
  
  An example: if most of the homes in your subdivision have laminate counters and you put in granite, your home might sell faster than the competition, but it won’t sell for much more than the competition. Even worse, the appraiser might not give any value on the appraisal for the upgrade, which means the appraisal might come in lower than the contract price, which means you might have to come down on your price to get it sold.

  If you want granite, and aren’t going to sell for a while, go ahead an put it in. Just remember that the value of the home update is the value to you and for your use, not for what you’ll get back when you go to sell.

Leave the Marble Tubs for the Mansions

Leave this big-ticket item for the masions

The absorption rate tells how many homes are selling in a given period of time.

As a home seller in Austin, Texas, why should you care?

This gorgeous home is NOT for sale, but it is one of the nicer ones in it's area.

Absorption for Real Estate, Explained

I’ll do the math for you.

Let’s pick a simple example:

• In the last 4 months, 20 houses have sold in your area. 20/4 = 5
• That means 5 houses per month are selling.
• The real estate absorption rate for your area is 5 houses per month.
• If 50 houses are for sale, it should take 10 months to sell them.

Pricing Your Austin House to Sell

Do you want to wait 10 months to sell your home?

Probably not.

If you want your house to sell, it needs to be one of the best deals in the area. Otherwise, it will get passed over for other properties that are a better deal. By better deal, I mean better combination of location, condition and price.

It is that simple.

If your home is priced in the middle of the pack, it probably won’t sell this month. It probably won’t sell next month either. Or the next month.

As homes sell, new ones come on the market. If they are better priced for what they offer, they will sell before yours.

Talk to Your Listing Agent

When you meet with your Austin Listing Agent to get your home ready to sell, you need to discuss the absorption rate before you decide on the right listing price.

Remember, you want to sell your home, not just list it.

To do that, you need to price it right for the market in your area.

It’s that simple.