Leander Purchases Sandy Creek Water Treatment Plant

Leander signed a purchase agreement for Sandy Creek Water Treatment Plant on Oct. 14, following almost a full year of negotiation with LCRA to purchase the facility.

According to city officials, this means Leander residents are avoiding the possibility of having a private contractor run the facility and increasing rates in the future. Leander will pay $36.6 million for the facility, but officials say ownership will allow the city to charge its approximately 9,000 water customers at cost.

Leander has been working toward the goal of purchasing Sandy Creek WTP since LCRA announced its intention to sell the water and waste-water treatment facility as a package deal along with 31 other systems in November 2010. Leander officials were not always convinced LCRA would sell the facility to the city, so the city filed a lawsuit earlier this year

Sellers Leaving Money on the Table

For sellers to achieve top dollar on their home many miss an important element that is costing them money.  Staging.   Lets do the math.  If the seller spends a median of $250 on staging and the selling price of a staged home is typically 1.7% higher, then for a $200,000 home, staging can result in a $3,150 return on investment at closing!  Since only one and three sellers stage their home, there are sellers leaving money on the table.

Sellers who enhanced their curb appeal received their first offer 6 days faster and sold 7 days faster for 1.23% points their in the list to sell percent.

The takeaway, sellers who choose not to stage and add curb appeal to their home is leaving money on the table.

How to Close on a Home Quickly

Congratulations! You've finally found the house of your dreams and submitted an offer. Now on to the tricky part - getting your loan approved.

How Long Should it Take from Purchase to Closing on a Home?

Once your offer is accepted by the seller, your loan application will be submitted to an underwriter for approval or disapproval based on your financial and credit standing. This process, which can take as short as two weeks or as long as two months, is often the most stressful time for a new home buyer.

It is common for a new buyer to be excited about their home purchase only to hear horror stories that their loan may be denied or the offer may fall through. This anxiety or uncertainty can also be heightened if the buyer needs to move quickly, and has to consider a temporary rental until the house closes. While this situation is never ideal, there are certain steps that can help move the closing process along. Here are a few tips and quick close solutions:

• Know what you can afford.
• Know your credit score.
• State all financial information upfront and truthfully.
• Provide paper and electronic copies of all financial documents.
• Ask the right questions and think ahead. Regularly ask your lender if there is anything else you can provide to help your portfolio. By politely asking, “What's next?” you may help create a sense of urgency that can help speed the process and get you into your new home more quickly.

If you've done your buyer homework, crossed all your T's and dotted your I's, your home will be more likely to close in a desired time frame. However, if you're still in escrow and need to move quickly due to lease expiration or other unforeseen event, you may find yourself looking for a temporary rental. The situation may short-term plan, such as a lease. If you have a lot of furniture and belongings, you may want to put them in storage for a month or two while you find a smaller month-to-month rental. If you're unable to find a temporary living arrangement, you can also consider staying with family and friends during this time. This moving to move may cause an unneeded headache, but at the end of the day, you will be much happier you decided to wait out your loan when you're able move into your new house and call it home.

Cedar Park One of the Fastest Growing Areas in the Country

The 1890 Ranch shopping center in Cedar Park has been sold for $97.6 million to a joint partnership created by Chicago-based Inland Western Retail Real Estate Trust and Canada-based RioCan Real Estate Investment Trust.

The 486,896-square-foot shopping center, at the 183-A toll road and RM 1431, includes a Super Target, PetSmart, Academy Sports, Ross Dress for Less and a Cinemark theater.  Developed by Endeavor Real Estate Group, the shopping center opened in 2010.

The acquisition expands Inland Western’s portfolio in Texas to more than 10 million managed square feet, including more than 1.5 million square feet in the Austin market, Inland Western said in a news release.

“Cedar Park is located in the fourth-largest region in Texas, and it’s one of the fastest-growing areas in the country,” said Shane Garrison, chief investment officer of Inland Western. “We’re pleased to add 1890 Ranch to our venture with RioCan, and we will continue to execute on our strategy of acquiring Class A retail properties in high-growth metro areas.”

SOURCE:  Austin Statesmen, October 24, 2011, Staff Writer

UPDATE: Many homes under contract will not be able to close after September 30 if Congress does not act

In an update to a previous post, the Senate voted in favor of an amendment that would reinstate the heightened conforming loan limits for mortgage loans backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The amendment, introduced by Sens. Johnny Isakson (R-Georgia) and Bob Menendez (D-New Jersey), passed late Thursday with a 60 to 38 vote. 

The conforming loan limit was previously increased on a temporary basis to $729,750, but the rate expired September 30 and returned to its original rate of $625,500.  The house still needs to approve, if approved the conforming loan limit will rise again to $729,750 and remain there through 2013.

Lord British - Video Gaming Mogul, Selling Britannia Manor II, in NW Austin

Video game mogul and noted space tourist Richard Garriott is selling his Hill Country home in northwest Austin.   You too can own his home, aka Britannia Manor II, in Northwest Austin for a mere $4.1M.

Along with his extensive career in the gaming industry, Garriott is one of a handful of people wealthy enough to participate in the space tourism industry. In October 2008, he traveled to the International Space Station.

Williamson County Burn Ban, Still in Effect

Williamson County commissioners extended the county burn ban for 90 days during a regularly scheduled Oct. 18 meeting.

Additionally, Williamson County could be considering extending the burn ban up through the same time next year if weather predictions are accurate, Williamson County Emergency Services Director John Sneed said.

The burn ban prohibits smoking in county-owned parks, preserves and trails. The burning of household yard waste such as leaves, brush and grass is also prohibited under the ban.  Outdoor cooking is allowed if it is enclosed on at least three sides and the top can be covered. The burn ban also allows welding, cutting and grinding operations if required precautions are taken.

Williamson County Property Tax Bill Mail Out - This Week

Williamson County property tax statements will be mailed to county residents the week of Oct. 17, according to the Williamson County tax assessor/collector.

The office of the Williamson County tax assessor/collector sends out tax bills on behalf of most of the taxing entities, according to a Williamson County news release. Property owners who have their taxes escrowed by their lender will not receive duplicate statements. 

People who own property in Hutto ISD will not receive their tax bill until the week of Nov. 14. Residents of Hutto ISD will vote on the school's adopted tax rate in the Nov. 8 election. Hutto ISD and the Williamson County tax office decided to postpone the delivery of tax statements until after the results of the election are known, according to the news release.

Williamson County residents with questions about property taxes can visit www.wilco.org or call 512-943-1603.

Green Building is the Future for Real Estate

Eco-friendly home designs are one bright spot in today's struggling real estate economy. As homeowners look to buy new, green-constructed homes, real estate builders are doing everything they can to lower the cost of living with energy and environmentally efficient designs.

The Appraisal Institute, the nation’s largest professional association of real estate appraisers  released a form intended to help analyze values of energy-efficient home features. It is the first of its kind intended for appraisers' use.  If you have invested in green energy products in your home, ask the appraiser to include option addedum to the Fannie Mae 1004.

Builders and home owners have been hesitant to add green energy feature in their home because there was no way to show the value in the appraisal process in getting a refi or selling the home.  Now they can!

How to Achieve LEED Certification

 

LEED certification works by awarding points for factors like air quality, water conservation, and energy efficiency based on the design of homes and office buildings. Some of the ways buildings and homes gain high LEED marks include using green materials for flooring, paint and windows, and by installing equipment like dual-flush toilets and Energy Star appliances, which use less electricity compared to older appliances.

The Natural Resources Defense Council estimates that an LEED certified green building can cost up to two percent more in upfront costs and, as LEED rises in popularity, many eco-friendly building materials are beginning to fall below standard construction costs of an average non-LEED home.

In 2009, the number of homes receiving LEED certification tripled compared to 2008 with more than 3,000 new buildings and homes. As more than 155,000 architects, contractors and consultants passed a USGBC test to become a LEED accredited professional or green associate, everyone in the developer community expects this trend to continue to lead the economic reform to the real estate market in the future.

MLS Statistics - September 2011

The Austin area housing market continues to see improvements.   The latest MLS (Multiple Listing Service)statistics for September 2011 show that for all areas of ACTRIS (Austin Board of Realtors), the number of listings sold is up 19.9% from this time last year, total volume is up by 22.3%.    The average sales price, $241,609 is up by 2.0%, when comparing September 2011 to 2010.  That is great news for home owners and should be a wake up for home buyers sitting on the sideline waiting for things to bottom out.  

These statistics will change depending on the area you live in.  Area CLS (78613- Cedar Park) is experiencing median sales price increase of 7.3% ($227,567), however volume is basically the same when comparing 2011 to 2010.

The takeaway.  With the continuation of job growth in Texas, we are see that growth impact the real estate market by increasing volume and sales.  New residents are consistently moving to the area.  With record low mortgage rates, it may be a great time to make that move up to your next home or purchasing your first.

Monthly Review of Texas Economy-September 2011

Texas continues to outperform the United States in job creation. Texas gained 271,400 nonfarm jobs from August 2010 to August 2011, an annual growth rate of 2.6% compared with 1% for the United States. The state’s private sector added 284,200 jobs, an annual growth rate of 3.3% compared with 1.6% for the nation’s private sector.

Texas jobs created from August 2010 to August 2011 accounted for 21.1% of total nonfarm jobs created in the U.S.  Texas’ seasonally adjusted unemployment rate increased to 8.5% in August 2011 from 8.2 in August 2010.

The nation’s rate decreased from 9.6 to 9.1%.  All Texas industries except the information industry and the state’s government sector had more jobs in August 2011 than in August 2010.

The Austin-Round Rock-San Marcos metro area’s annual employment growth rate from August 2010 to August 2011 was 2%, ranking it 11th in Texas.   

Source: Real Estate Center @ Texas A&M University; http://recenter.tamu.edu/pdf/1862.pdf

Home Appraisal versus Home Inspection

The mortgage settlement process, often referred to as the mortgage closing, can sometimes seem confusing and a little overwhelming. Whether you are buying a new home or refinancing an existing home, there are various fees to be paid and steps to go through. Two steps that are often confused by home buyers are the home appraisal versus home inspection. 

Remember the Difference: Home Appraisal versus Home Inspection
One easy way to remember the difference between an appraisal versus a home inspection is that a home inspection is for your protection. A home inspector will not estimate the value of your home.
Typically, home appraisals are for lenders; home inspections are for buyers.

  
What is a Home Appraisal?
A home appraisal is a document that provides an estimate of a property's price, otherwise known as its market value. Your home will serve as collateral for the mortgage, so a lender will require an independent appraisal on the property prior to the approval of your mortgage loan application. This is to ensure that the mortgage loan amount is not more than the value of the home and lot you want to purchase or refinance. Most lenders will loan you no more than 95 percent of the appraised value of the home or purchase price, whichever is less.

The person who conducts the home appraisal is called an appraiser. This person will consider several factors in developing the home appraisal, including location, square footage, recent sales of similar properties, and construction quality to estimate the property's market value.

There is a fee associated with getting a home appraisal. Some lenders and brokers will include the appraisal fee in the loan application fee; you can ask the lender for a copy of the appraisal. If you are refinancing and have a recent appraisal of the property, some lenders may waive the requirement for a new appraisal. If you are in this situation, you could save a few hundred dollars by using the existing appraisal.

FHA Loans Appraisal

Many mortgages are insured by the federal government through the Federal Housing Administration (FHA.) The FHA requires lenders to get an FHA loans appraisal on properties prior to loan approval. According to the FHA, they require appraisals for three reasons:

• To estimate the market value of the property.
• To make sure that the property meets FHA minimum property requirements/standards for health and safety.
• To make sure that the property is marketable.

An FHA loan appraisal document will indicate property defects that are easily noticeable and found not in compliance with U.S. Department of Housing and Urban Development's minimum property standards. These defects may not be the same as those items noted in the home inspection report. The estimated cost of a property appraisal is $263 to $444, with a nationwide median cost of $292.

What is a Home Inspection?

There are two types of home inspections, those required by the lender and home inspections initiated by the buyer.

A Lender's Home Inspection

A lender, especially one that offers Veteran's Affairs (VA) or FHA-insured mortgages, may require a home inspection and an analysis by an engineer or consultant to check for things like water damage, termite damage, and the structural condition of the home. In rural areas, lenders may want a test of the septic system (if applicable) and a water test to make sure the well and water system will maintain an adequate supply of water for the house. These water tests usually will check for water quantity, not quality. The health department of the local city government may require a water quality test as well, but this might be done outside of the mortgage settlement process and require a separate payment. Keep in mind that a lender's inspection is for the benefit of the lender, not you. You may want to ask for a buyer's home inspection to make sure the property is in good condition. The cost of a lender's home inspection will likely be between $300 and $500.

A Buyer's Home Inspection

Often, a buyer will make the purchase offer of a home contingent on the results of a home inspection. You will have to pay for this inspection. The cost varies by region, but spending hundreds of dollars could save you thousands.

When you make a purchase offer, sometimes called a binder, contingent on the results of a home inspection, it allows you to cancel closing on the deal if an inspector finds problems with the home or property. If deficiencies are found with the home, you may want to renegotiate for a reduced price or require the seller to make repairs to the home. If you are getting a VA or FHA loan, you will need a certificate from a qualified inspector stating that the home is free from pests such as termites and rodents. In this case, you can also make your purchase offer contingent on pest inspection results.

Similar to the lender's home inspection, an inspector should examine the home for structural soundness, water damage, and pests. In addition to these basic home inspection criteria, you may want to have the home inspection include an examination of the condition of the roof and the plumbing and electrical systems. It is also wise to have the home tested for environmental hazards that may not be visible to the casual observer. This may include testing for radon gas emissions, water quality, asbestos, lead-based paint and other toxic materials. If you are making your purchase offer contingent on the results for environmental hazards, make sure this is stated clearly in the conditions of your offer.

Remember, the easiest way to know the difference between an appraisal versus a home inspection is that an inspection is for your protection!

Sources
http://www.federalreserve.gov/pubs/settlement/default.htm

Runoff Continues in to Austin Area Lakes, Raising Lake Levels.

With the much needed rain the Austin area received over the weekend, as of Monday, runoff from the heavy rainfall in the Texas Hill Country over the weekend is still flowing into the Highland Lakes. At 8 am, flow is elevated at the Colorado River near San Saba, and the Llano River at Llano.

As of 8:00 this morning, the level of Lake Buchanan was rising at 988.31 ft msl, which is about 23.0 feet below its historic October average of 1,011.35 ft msl. Lake Travis was rising at 628.87 ft msl which is about 37.3 feet below its historic October average of 666.20 ft msl. The total combined storage in the Highland Lakes two water storage reservoirs, Buchanan and Travis, has increased slightly to 759,000 acre-feet, or 38 percent of capacity. The surface water temperature of Lake Travis as measured near Mansfield Dam is 78 degrees.

Releases will be made for a short period today at Buchanan Dam. Releases may occur at Inks Dam, Wirtz Dam and Starcke Dam to maintain lake levels. Releases will be made today at Mansfield Dam, mostly for City of Austin water supply. Releases from Lake Austin, for downstream users and environmental needs, will be passed through Tom Miller Dam. Releases for emergency generation could occur at any time at any of the Highland Lakes dams. Releases from Lady Bird Lake through Longhorn Dam are controlled by Austin Energy, the electric utility for the City of Austin.

The Electric Reliability Council of Texas (ERCOT) may call upon LCRA for hydroelectric generation at anytime without notice. Lakeside residents and lake users immediately downstream of the dams should take necessary precautions against possible high flows and higher lake levels.

Can You Still Buy with No Down Payment on a Home?

For many 1st time home buyers requiring down payment assistance, the idea of putting the traditional 10 or 20 percent down on a home purchase can leave them feeling drained or hopeless. Will they have to sacrifice their dream neighborhood or home size simply to afford a pricey down payment?

Fortunately, it may be possible for certain buyers to put no down payment on a home and still qualify for a competitive loan. Whether you are short on cash or just don't want to spend your cash on housing, 100 percent financing can be an attractive option for first time buyers.

Prior to 2007, putting no down payment on a home was a common option for 1st time homebuyers. However, with mortgage lending practices coming under fire in recent years, the option to finance 100 percent has lost popularity. Yet there are still programs available to 1st time home buyers requiring down payment assistance who meet certain eligibility requirements.

100% Financing Options - No Down Payment

USDA Loans - A USDA Guaranteed Loan is a Government insured 100 percent purchase loan. These USDA Guaranteed Loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines. While they may be an attractive option for first time home buyers, there are income restrictions and loan limits that first time home buyers must meet.
VA Loans - The Department of Veterans Affairs (VA) backs loans provided by certain lenders to help qualified veterans, reservists and active-duty service members to finance their homes. For those first time home buyers that qualify, there are flexible income, debt and credit requirements.
ADDI Program - The American Dream Down Payment Initiative (ADDI) provides down payment, closing costs and rehabilitation assistance to eligible individuals. The amount of ADDI assistance provided may not exceed $10,000 or six percent of the purchase price of the home, whichever is greater. To be eligible for ADDI assistance, individuals must be 1st time home buyers interested in purchasing single family housing. Additionally, individuals who qualify for ADDI down payment assistance must have incomes not exceeding 80 percent of area median income.

90%+ Financing Options

FHA Loans  FHA Loans offer a 30-year fixed-rate loan for first time home buyers with a 3.5 percent down payment. The down payment can be a gift from a family member or other grant program, and there is a maximum mortgage amount for each county.
Fannie Mae HomePath Loans: Fannie Mae HomePath offers a five percent down payment program on many of their foreclosed properties. To be eligible, you must have a minimum 660 credit score.

1st Time Home Buyers Down Payment Assistance Programs

If you're a first time home buyer and don't qualify for any of the above scenarios, you may be wondering where you can find down payment help. Fortunately, there are multiple ways to receive 1st time home buyers down payment assistance.

Junior Loans: Many banks offer Junior Loans to first time home buyers, which are typically smaller loans (under $50,000) that help buyers meet tough down payment requirements.
Gifts and Gift Registries: An increasingly popular option for buyers is to register for down payment gift registries, which allow family and friends to donate funds in lieu of buying a traditional wedding, birthday or graduation gift.  Check out myregistry.com or downpaymentdreams.com.
Tax Refunds: Buyers who typically receive a refund on their income taxes can easily put the extra cash toward a down payment.
Seller Negotiation: A less popular, yet worthwhile option may be to negotiate a donation of down payment funds from the home seller. Because of the extreme home surplus in recent years, many sellers are willing to negotiate untraditional payment terms or purchase agreements. It may be possible that the seller will consider giving you a portion of the home down payment in lieu of reducing the home price.

Regardless of your financial situation, buying a home is a big decision and all financing options should be considered carefully. With the right resources at hand, you'll be prepared to make an offer on your dream home in no time.

Torchy's Tacos - Now Open - Plaza Volente on 620

Yum! I love taco's from Torchy's, so I am excited they've open an location closer to Cedar Park.  Love, love the green chile pork.

Torchy's Tacos opened its eighth Austin location Sept. 30 in the Plaza Volente shopping center near HEB at 11521 RM 620, Ste. 1000. Torchy's first opened in 2006 and serves up tacos, including its green chile pork and fried avocado, as well as breakfast tacos . www.torchystacos.com