As 2009 begins, it seems that buyers are now catching on to what many Realtors have been saying for the last 90 days - now is a great time to buy! With Texas mortgage rates bouncing around in the 4.625% to 4.875% range for qualified buyers in the last week or two, our firm is seeing buyer clients appear out of nowhere after months of hibernation.
For buyers, now is a great time to consider interviewing to find a great buyer's agent to assist in your spring search. Some things to consider when interviewing a buyer's agent:
One thing many first-time buyers don't know is that one should really hire a buyer's agent and work with a mortgage lender for a pre-approval and budget range before they start to browse for homes! Doing so doesn't cost you a dime, and makes the buying process easier by having a correct budget upfront, building trust between the buyer and the Realtor before viewing properties, and arming the buyer with data to make the right offer on the right home in the right neighborhood.
One last thing: on the buyer side, clients don't pay a commission! The listing agreement between the seller and the seller's Realtor specifies a commission to pay for a buyer's agent, so as a buyer, you take advantage of these services without having to pay fees! Having a buyer's agent working for you will save you time, help you obtain a great price, and make the contract to closing process go smoothly. Don't just call a sign! Interview someone referred to you by a friend, or look for Realtors online with great testimonials on their pages. It will improve your experience tremendously. For more on hiring a Realtor, see this great article at Realtor.org.
Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative (ABR) at RealtyAustin.com serving the Central and Southwest Austin, TX area. You can reach him on 512.636.0672 if you need a Realtor in the Central, South Central, or Southwest Austin area!
For Realtors with downtown and Central Austin clients, or for buyers considering a 2009 purchase, there have been a number of announcements and changes in the Congress Avenue and 2nd Street areas recently near the Austonian, W, and 360 Condo towers. Here are a few to note for Realtors and buyers alike:
- On December 22nd, the building formerly housing Las Manitas Cafe and Tesoro's Trading Company was demolished to make way for a new hotel project from White Lodging Services. While construction is on hold at present due to the economy, the ultimate plan is still in place. The block was the subject of a contentious battle over the past two years due to Las Manitas' "local favorite" status among Texas musicians, politicos, and residents. The restaurant may reopen a block away near 3rd and Congress in 2009, but plans have not been made public.
- Meanwhile, up the block, Patagonia has opened a nice retail facility in the W.B. Smith building at 316 N. Congress Avenue. The store is open from 10am-7pm Monday through Saturday and 11am to 5pm on Sunday.
- Up near 9th Street, El Chile has expanded their taqueria empire with an El Chilito location that is now open for breakfast and lunch. The store opened in late October, and hours are 7am-3pm Monday-Friday. This is not a full-scale El Chile, but rather a casual spot serving breakfast tacos, burritos, tacos, sodas, and beer.
Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative at RealtyAustin.com serving the Central and Southwest Austin, TX area. He would be pleased to work with you as a buyer's representative on your home search. You can reach him on 512-636-0672.
Earlier this month, I spoke with Mark Townsend of Cornerstone Mortgage to discuss the current loan market for buyers and investors to get a better sense of what was in store for 2009. Mark's first item of business was to email me some changes on FHA loans that will impact a number of buyers in our area during the new year. For those who haven't yet seen this information, you might want to take note, as it will change the amount your FHA buyers can be approved for going forward.
First, our higher FHA temporary loan limits expire at the end of December and will not be renewed for 2009. This means that the current $288,750 limit will decrease to $271,050 for the forseeable future. This makes the maximum Austin purchase price for an FHA home $280,880 without an additional down payment requirement. You can still do FHA home loans on higher amounts, but your client must make up the difference with funds at the closing table.
Second, FHA down payment requirements are increasing slightly (to 3.5%) for 2009, replacing the 2.25-3% band from 2008. While this change is likely a good move to prevent foreclosures and increase loan stability, it may surprise some FHA buyers who asked about these matters before the changes were in place. Also note that this number applies to the lesser of the appraised value or the sales price, so you'll need to monitor those appraisal numbers as they come in so that your clients aren't surprised when the HUD arrives.
As always, it's great to keep in touch with trusted lenders (I work both with Mr. Townsend and with Ashby McDonald at Highlander Mortgage most regularly) to keep an eye on the mortgage market, as it will provide tremendous benefit to your clients in terms of expectations and understanding.
Happy holidays, everyone.
Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative at RealtyAustin.com serving the Central and Southwest Austin, TX area. You can reach him on 512-636-0672.
By popular demand, Austin Energy has decided to expand the rating area of their Austin Energy Green Building program for the 2009 year. This will give invididuals and builders in surrounding counties the chance to market homes using the 3-5 Star Austin Energy rating system that is so popular with local consumers. The utility is currently training independent Extended Area Raters to begin administering the program in the new year.
For those curious about which new areas will be included, here's a quote from the press release: "This new area includes counties in Climate Zones 2.2 and 3.1 east of the Moist/Dry Line and west of the Brazos river, excluding the rating area for Build Green San Antonio. This includes the following counties: Austin, Bastrop, Bell, Blanco, Bosque, Burleson, Burnet, Caldwell, Colorado, Comal, Coryell, Fayette, Gillespie, Gonzales, Guadelupe, Hays, Kendall, Lavaca, Lee, Llano, Milam, Travis, Washington, Williamson, Wilson, and portions (west of the Brazos River) of Falls and McLennan counties."
You can view a map of these Climate Zones here.
For both Realtors and consumers, it is great to see Austin Energy helping surrounding communities to encourage Green building in Central Texas. Since green developments are already in place in communities like Buda and Georgetown, this is much-needed and should be a very positive development for 2009.
Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative at RealtyAustin.com serving the Central and Southwest Austin, TX area.
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Tom Thornton specializes in Central, Downtown, East, + SW Austin homes. His focus neighborhoods include Downtown, Hyde Park, Clarksville, Barton Hills, Tarrytown, Circle C, Lantana, + Travis Heights.
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