Phil Hutson

Hey Mr./Ms. Custom Home Buyer - think you're smart/sophisticated enough to find that super deal on that million dollar home you've always wanted? Don't be so sure.............

Although sometimes more sophisticated than your average home buyer, since typically the upper-end luxury home buyer is older (not necessarily true in the Austin area), has done this many times before, and has more time TO look, the standards of finding the "best" deal still prevail. The "best" deal is not always so obvious if data obtained solely from web-based sources (numerous "find-the-best-home" Internet sites) is the main, if not only, source of information. Having access/knowledge to data not found on the Internet is sometimes crucial to not only saving thousands of dollars on the price, but in finding a Custom Builder that is reputable and financially sound to service warranty issues after closing.

I say this because it ceases to amaze me the number of high-end custom homes sold every year in the Austin area without a Realtor. True, a number of these homes are contracted directly with the Builder on a to-be-built basis, but even that process could have been enhanced if the Buyer had first obtained the services of a reputable Realtor with experience in and with custom home sales - before the bid process, during architectural planning, through construction, and to final closing. The mere price of that million dollar+ mansion should NOT be the only consideration in a buyer's thought process, as so much more goes into probably one of the most expensive investments one will make!

Here are a few items to consider that are VERY important, and that most if not all custom buyers either have expertise in, knowledge of, or access to:

• Inventory of available or soon-to-be-completed homes; access to all "appointment only" homes

• Synopsis of selected Builder, community history (appreciation/depreciation), school analysis

• Builder sites/lots available for construction

• Market/cost analysis including site procurement (lot cost), price/sf, sold comparables, etc.

• Architectural/structural/feature recommendations

• Construction walk-through inspections through completion, and final inspection w/builder

• Mortgage companies/interest rates (when applicable), and title and closing documentation review

Realtors that represent Custom/Luxury buyers are not usually the "rookies" in the office, but generally the more seasoned veterans that have done this before. In a previous post, Austin Real Estate Agent - Choose a Specialist, I mentioned qualities to look for when making a Realtor decision.

I built my own Custom home - I'd be glad to assist in helping build yours! With over 24 years experience, put my vast knowledge of the Austin Custom Home market to work for you! Contact Phil Hutson @ phil@showcaseofhomes.com, or call toll free (888) 410-5858.

Area Market Statistics

Home Sales Stabilize in Austin Area

October 20, 2008 - Central Texas home sales remain steady, according to the latest Multiple Listing Service (MLS) report from the Austin Board of REALTORS®. The median price for single family homes in September remained unchanged from one year ago, while the number of homes sold inched closer to 2007 sales totals.

The 1,670 homes sold in September reflect an eight percent decline from one year ago. These sales contributed $406,955,620 to the local economy, down 11 percent from 2007. Meanwhile, the median price for single family homes showed no change from last September, remaining at $182,600.

Active listings for September rose two percent from one year ago to 10,217, while pending sales dropped ten percent to 1,520 and new listings fell 11 percent to 2,617. The average amount of time these properties sat on the market rose 18 percent from 2007 to 71 days.

"National economic troubles and limited access to credit continue to impact the local housing industry," says ABoR Chairman Socar Chatmon-Thomas. "However, Austin's economy has avoided many of the ups and downs experienced by other parts of the U.S., and our city is poised to remain on the forefront of the country's economic turnaround."

September 2008 - Single Family Homes

• 1,670 was the number of homes sold, down 8 percent from one year ago
  
• $182,600 was the median price, unchanged from September 2007
  
• $406,955,620 was the total dollar volume of properties sold, down 11 percent from last year

For a comprehensive home analysis for the Austin metro area contact Phil Hutson @ phil@showcaseofhomes.com or call toll free (888) 410-5858.

For the 2008-09 fiscal year, Austin, Texas, property tax rate remains lower than other major cities across the state at $0.4012 per $100 property valuation. For the average homeowner, this means a tax bill of approximately $988 a year.

The 2008-09 fiscal year tax rate of $0.4012 per $100 of property valuation is lower than last year's rate of $0.4034, but since home values are still climbing, the average homeowner will pay around $80 more a year to the city at tax time.

Tax rate decrease

With city-owned utilities making transfers to the general fund and substantial sales tax revenue, Austin is able to keep the property tax rate lower than other major cities in Texas. Ransom-Nelson said the average home price in Austin is up approximately $21,000 from last year to $246,352. Based on that valuation, a homeowner would pay $988.36 in property tax.

While the escalating property valuations will equal more tax revenue for the city this year, expenditures are increasing as the city tries to keep up with the growth. In a statement released during the budgeting process, Austin City Manager Marc Ott said the city will have to continue to keep a close eye on revenue in the coming years.

Growth is Slow But Steady

While the U.S. economy is experiencing turbulent times, the City of Austin projects that the local economy will continue to grow during the current fiscal year, but at a more moderate rate.

City economist John Ransom-Nelson said economic trends at the local level do not necessarily mimic those at the national level. "Because Austin is in a growth mode and expanding regionally, the city is less likely to experience the slowdown that is plaguing other areas," he said.

"It depends on where [a city is] situated when the economy does better or it does worse. Austin is building a bunch of apartment complexes, and the real estate market is still fairly strong at the time. It's eventually going to affect us, but not as much," he explained. New Home Builders are feeling a little pinch, as they continue discounting some inventory homes to attract buyers.

Austin Has a Slight Cushion

Austin is also made up of sectors less susceptible to economic slowdown. "You've got a state government here and a university that are, to some extent, recession proof," Ransom-Nelson said. "It doesn't mean that it's totally recession proof, but it's a large component of the makeup of Austin."

This "cushion" also helps the real estate markets in the surrounding communities like Round Rock, Pflugerville, Westlake, and the Lakeway/Lake Travis areas.

The Location: 20 miles west of Austin.

The Numbers:

• Established: 1963
• Population: 8,002 from the 2000 census
• Average age: 41 years
• Current Median Home Price: $273,100
• Who lives there: Families (non-single residences) represent 79.9% of the population, giving Lakeway a higher than average concentration of families. There is a healthy mixture of working Austin families, retirees and second home weekenders.

Snapshot:
Lakeway is a planned development consisting of approximately 5,500 acres of Texas Hill Country that stretches across meadows, hills and limestone cliffs to the shores of Lake Travis approximately 20 miles west of the Texas Capital - Austin. It is one of the most respected recreation oriented, planned communities in America. Lakeway blends extraordinary scenic beauty with controlled growth and quality recreational resources. The land rises and falls in a panorama of the Texas Hill Country, secluded valleys and wooded acres - from the average Lake Travis level of 681 feet mean sea level to a maximum land elevation of 1,174 feet.

Eat, Shop & Play:
The City of Lakeway, boasts a wide variety of shops and eateries. A visit to the Oasis, the "sunset Capital of Texas" Located 450 feet above Lake Travis, is a must!

The Academy of Golf in the Hills is the most advanced golf instruction center in the country. Its three holes, a par 3, 4 and 5, provide a range of challenges and learning opportunities with multiple pin placements, fairway bunkers, uneven lie mounds and varying cuts of rough. The Hills of Lakeway golf course is one of three golf facilities in Lakeway.

Located adjacent to the Lakeway Resort and Conference Center is the Lakeway Marina, the largest full-service marina on Lake Travis. There are more than 350 covered boat slips, as well as a parts department and fuel service. Daily boat rental (skiing, fishing, pontoon, pedal and runabouts) are available.

The Hill Country Galleria Mall is expected to become the new shopping mecca of southwest Austin. The project which includes many high-end retailers offers a shopping experience much like that of "The Domain" in North Austin, with its village type atmosphere.

Outside of the retail shops, the Galleria will also feature a 1.3-million-square-foot lifestyle center, which includes a 30,000-square-foot City Hall, as well as an amphitheater and multifamily housing.

For additional information contact Phil Hutson @ (888) 410-5858, or email phil@showcaseofhomes.com.

For years, Pflugerville has had one of the highest property tax rates in the Austin area, but with five consecutive years of decreasing rates, Mayor Jeff Coleman said those days might soon come to an end.

"I firmly believe that in the next four to seven years, this city is going to have to make a dramatic decrease in the tax rate," he said. "By then, Stone Hill [Town Center] will be full, Verde [commercial development] will be full. It's just going to take some time."

City officials anticipate that commercial growth in Pflugerville will continue to push the property tax rate down, as it has done in other cities experiencing similar growth. But Coleman said it will take time for retailers to generate the substantial sales tax revenue needed to change the city's funding mix.

Growing pains, property values

On Sept. 23, the city council approved the 2009 fiscal year budget, including a half-cent decrease in the property tax rate. Homeowners will pay more next year in property taxes despite decreased rate.

The current city tax rate of $0.614 per $100 of property valuation will be lower than last year's rate of $0.619, but rising property values mean homeowners are likely to pay more at tax time. The value of an average home in Pflugerville is $169,791, and with the new rate a homeowner will pay $1,042.52 next year in city property tax - an increase of $25.20.

"In the 2000 [U.S.] Census, we had 16,000 people. Today, we have over 41,800," Coleman said. "In less than eight years we have grown drastically."

Rooftop market

Although the new rate is lower than last year's, it will still remain significantly higher than nearby cities such as Round Rock and Austin, with respective rates of $0.3652 and $0.4012 per $100. Coleman attributes this to those cities' more established commercial sectors and the amount of sales tax revenue they generate.

Pflugerville relies more on property taxes than neighboring Round Rock, which depends on sales tax revenue from Dell, Inc. for a large percentage of its general fund revenue. For 2009, only 14 percent of Pflugerville's general fund revenue will come from sales tax, and nearly half will come from property taxes.

City Manager David Buesing said cities like Pflugerville traditionally have higher tax rates to compensate for the lack of retail.

"We've got a rooftop market here and when that's mainly what you have, you have higher taxes," he said.

Coleman said even with higher property tax rates than nearby cities, Pflugerville homes are among the best values in the region.

"We feel like we have the most reasonably priced housing market in the northern Austin market," Coleman said. "You can buy more house [for the price] in Pflugerville than virtually any place in Central Texas."

Mixed messages

As the commercial sector develops in Pflugerville, the council wants to make the city a place where residents can also work.

"What we're really focusing on now is recruiting businesses that are going to bring employment bases into Pflugerville," Coleman said.

But as the city moves forward, Coleman said the council will do all it can to preserve Pflugerville's rural charm.

"Our goal is to maintain as much of that small-town, community feel as possible while implementing those aspects of a larger suburb, which are retail growth and commercial tax base growth."

The dilemma facing the council, Coleman said, is finding a compromise that satisfies citizens wanting lower taxes but not willing to see nearby green fields transformed into retail space.

"The city council receives a very mixed message depending on the project," Coleman said. "On one hand they say drop our tax rate and on the other hand they say don't change to do that, and we can't accomplish both things. We try to find a balance."

Source: Community Impact Newspaper

For additional information contact Phil Hutson @ www.showcaseofhomes.com.