Susan Avant, Realtor

For those of you who missed the Austin Business Journal's article September 15th, recovery is just around the corner for the Capitol City. The article cited a report from IHS Global Insight which stated that "the first two U.S. cities to recover from the recession will be Austin and San Antonio (2010)." Dallas-Fort Worth and Houston are in the group expected to bounce back in 2011.

It's another report stating that Austin is surviving this recession better than most of the country. But what does this mean for our real estate market? Ask your neighbor who has had their home on the market for the better part of the last year, and I doubt they will tell you things are looking up. Their home has probably been on the market for months, and they have been adjusting their price as the market has dictated. Adding insult to injury, many sellers have received offers so far below market value that they have refused to respond.

But the truth is that while the Austin market has declined in the past year, the Austin Board of Realtors just reported that although home sales in August were down 10% from August 2008 there was only a 4% decrease in price. Sellers are willing to have their homes on the market longer and wait out the decline rather than accept an unreasonable offer. For instance a house that would have sold for $1,300,000 last August would sell for $1,248,000 today. And while luxury properties are taking longer to sell and inventory is still high, the percent of price decline is still between 4 and 5 percent.

So the question surfaces, why leave a house on the market allowing it to accumulate a high number of "days on the market"? Simple answer, buyers are still buying (90% is a healthy number) and if the house is off the market a showing and possible sale may be missed. Of course there are hip pocket listings and silent listings, especially in the luxury market (I admit I have one), but it is impossible to market to all agents at all times any more efficiently than through the MLS system. And most sellers are savvy enough to understand the power of this network.

Now there are still a few uninformed buyers/agents focused on "days on the market" who are under the assumption that most sellers are in dire straights and are willing to discount their homes, but many buyers/agents are noticing that Austin's housing market may be at its' lowest point and now is the time to buy. Low interest rates are also enticing buyers to get under contract.

So hang in there sellers, as frustrating it may seem right now, your buyer is nearby. While I don't think we will see a boom in real estate sales in 2010, I do think that we will continue to see a steady strengthening of the market.

Monday, August 24, 2009

Approved by the Austin City Council, the Energy Conservation Audit and Disclosure (ECAD) ordinance became effective on June 1st. Currently the ordinance applies only to properties within the city limits of Austin who receive electricity from Austin Energy, but it is sure to expand throughout the county in the coming years.

What does this mean for a homeowner considering putting their home on the market? A homeowner must get the audit before the sale of their home. There are no requirements to fix/upgrade any of the deficiencies, it is for information only. But beware, while the auditors need to meet the City's certification requirements, and perform a specific audit, there is not yet a standard for pricing. Be sure to get two or three quotes before you hire an auditor.

Many of the auditors may also be service providers for the needed energy-efficiency improvements. Before they do the audit, let them know you will not be hiring them to do any needed improvements, it is best to hire a provider that is neutral to the transaction.

So, does your house need an energy audit? There are many exceptions. If your home is less than 10 years old or has received energy-efficiency improvements or a total of $500 in rebates through the Austin Energy Home Performance with Energy Star (R) Program within 10 years of the sale your home is exempt.

Other exemptions include condominiums, mobile/manufactured homes, foreclosures, pre-foreclosures, trustee or deed sales, gifts within families, court order, probate, decree of legal separation or divorce. A homeowner can go to the website (below) and do an ECAD Audit Self-Check to see if your home qualifies for an exemption.

What does the ECAD tell an owner about their home? Among other things, the audit measures air leakage from ducts, R-value and efficiency of attic insulation and heating and cooling efficiency. The audit also identifies windows which are receiving at least one hour of sun per day.

While the ordinance doesn't apply to many homeowners in the Austin metro area, the idea of making repairs/upgrades to our homes while we still live in them is a good thing to consider. When the need for a new HVAC system, or refrigerator arises, be sure they are Energy Star (R) rated. Replace the old water heater with a tankless one, or re-insulate your attic, done over a period of time, when needed, these improvements will make the eventual sale of your home smoother.

My suggestion to anyone (inside or out of the Austin city limits), thinking of selling their home is to go ahead an get an energy audit. You may be able to upgrade some of the smaller deficiencies in your home and you will have the information ready to give to potential buyers from the beginning. Many buyers outside the city limits are asking for an audit to be performed as part of the contract, and will be pleased to know that you have been proactive.


Please feel free to contact me for names of approved energy auditors, with questions about the ECAD, or for help buying or selling your home.

For more information about Austin's ECAD ordinance http://www.austinenergy.com/About%20Us/Environmental%20Initiatives/ordinance/index.htm

As a child of the 60's & 70's growing up in California I am a product of the original "Green" movement: "Save Our Coastline", "Save the Whales" "Ecology Day" , etc. Social movements and peace movements were the way in which young idealists got out the word, protesting everything from war and nuclear weapons to deforestation and the need for cleaner national and local parks. It was the birth of Earth Day and many conservation groups, most notably Greenpeace.


We thought we were conservationists, but I think most of us were more into the idea of the cause rather than the practice of conservation. We spent designated days cleaning up the beach, the road, the water but never really stopped using the products causing the problems. It was about being heard, protesting, bringing attention to the problem, not finding a long lasting or "Sustainable" solution.


What's new is old. We are "Green" again, but now it's more mainstream to have solar energy or to use biodegradable products. Instead of strictly conserving or not using resources, we are balancing the use of these products with our lifestyles. We are becoming Sustainable.



Sustainability is defined as "the ability to satisfy the basic needs of today without compromising the ability of future generations to satisfy their needs.(1)" This is often defined as people, planet, and prosperity. It's no longer an all or nothing solution, it's about using and reusing what best suits our individual lifestyles.



We want "green" homes, but what does that mean? Is it enough to have energy efficient appliances and windows? For some it is, but others may need rainwater collection systems and xeriscaped lots. Or do you want all the building material in your home locally harvested? Maybe you just want low VOC paint and no carpet, there is no wrong answer.



We can be as much or as little "green" as we want and it's okay. The options and sources are out there, it's just a matter of education and practice. So if you are ready to start "greening" your life take baby steps. Start with grocery sacks or recycled paper, change out your light bulbs or toilets. For a list of Green resources go to my website under Reports and click on Central Texas Green Resource Guide. (http://www.susanavant.com/)





(1) United Nations "Our Common Future, Report of the World Commission on Environment and Development," 1987. Published as Annex to General Assembly document A/42/427.

I had an interesting weekend, from an unexpected encounter which got me wondering why it's so hard to answer the phone.

The weekend started as usual with some showing appointments on my listings. Then I took a buyer out to see new a couple of listings that fit their criteria. Nothing exciting enough to spark any interest, but at least they know what they don't want.

Sunday was l free, no open houses scheduled, and I started thinking that maybe I could get to a movie (Julie & Julia perhaps?) when my phone rang. It was a desperate call from a tenant moving into a condo where I have the listings for sale with my partner. Our phone numbers are on the banner hanging on the front of the building so we got the call.

This tenant was moving into her new unit and the leasing agent was now 45 minutes overdue and not answering his phone calls. Calls to the brokerage resulted in being forwarded to voice mail with no guarantees of a return call before Monday. It was 105 degrees outside, before noon, and the movers were getting impatient, I was their last hope for entry. But I knew nothing about their lease, I only sell those condos so I couldn't give them access.

Luckily I have the leasing brokers number and was able to find him and the new tenants gained access to their new home. But not long after, I received another call, the air conditioning not only was blowing warm air (remember it's 105 outside) but leaking all over the carpet. Calls to the management company resulted in , "it's not my job today" answers so I got the call. I contacted the developer and he was able to take care of the AC problem.

I put the incident behind me and didn't think of it again, there's always a snag and it's usually easily fixed. Plus, they aren't my clients!

Until this morning when I received an email from the tenant thanking me for taking the time to help her out and for being "professional" when no one else she has worked with during this transaction has made any effort to help her. She went on to give me a synopsis of her leasing experience beginning in March and it was unbelievable that she a)continued to work with this agent b)ever found anything to lease c)still had her sanity.

It made me wonder why agents don't answer their phones anymore and don't bother to research their buyers/sellers criteria or motivation for pursuing a transaction. It's so simple yet fewer and fewer "professionals" are conducting them selves in a professional manner.

Years ago (10-11?) I picked up a client because I returned a phone call and another agent did not. I have since conducted numerous transactions with this client, become friends with his family, celebrated the births of his children and received referrals from him just because I picked up the phone and provided "professional" service when he asked for it.

Isn't that what real estate are supposed to do? My service is my knowledge of the market, ability to get from contract to close and find my clients the best home (or buyer for their home) possible. I get paid for my advise and my service, I don't have a tangible commodity (car, surgical services, tax return) to give my clients. It's not a part time, when I'm not busy with something else, job. It's a job driven by constant communication with the client, other agents, and market knowledge. So why is it so hard to answer the phone?

I don't know, I don't have an answer, it's such an easy thing to do. I just know my clients are able to pass along my name to their friends and associates knowing that the agent they are referring will answer her phone and will be able to provide them with professional service from beginning to end.

After a fun filled weekend showing buyers around Austin, and again this morning, before the heat became too much, I realized that I've been busier these last few weeks than I have been in a long time. While this is traditionally a busy time, buyers trying to get into a new home before school starts and sellers hoping to have time to sell and settle into their new home before it gets too late in the fall, nothing has gone as expected recently.

It's odd to be so excited about "normal" activity in the marketplace, but I can't help myself. The past year has been unusually unpredictable, and this is coming from someone who threw out her crystal ball in the 80's! I've worked through many cycles in the market, some fantastic and some not so great, but there has always been a method to the madness, until the past Fall. No one, not even the "experts" have been able to come to a consensus, at least until recently.

Now, more often than not, I have been reading that Austin is rebounding on many different fronts (housing, jobs, best places for this & that) and my business is living proof that indeed, at least on the housing front, this is true.

I appreciate your referrals. When you work with me you'll know that A Class Act in Austin is in your corner.

For more information, read the latest news from Forbes. They predict Austin's economy will grow by $5 billion by the end of 2010. http://bit.ly/hE9sJ


http://www.SusanAvant.com/

Susan Avant, CLHMS, CRS, GRI
AvenueOne Properties
512-917-9936
susanavant@aveone.com
www.linkedin.com/in/susanavant