There are several categories of homes that aren’t listed for sale:

• For Sale By Owner – regular resale homes where the owner/seller doesn’t want to employ a listing agent
• New construction – sometimes one or two of a builder’s homes may be listed in the MLS, but if the builder has an on-site sales agent, sometimes they don’t list all of their homes – the as yet unbuilt, the under construction and the completed inventory.
• Pocket listings – where an agent is marketing a home for sale by themselves privately. This might be to extend greater privacy to the seller, who may not want attention drawing to themselves (Sandra Bullock – call me when you’re ready to sell), or may not want to have their home in a presentation ready state all the time.

There are also inaccurate data sources which list homes for sale when they’re not. For example, Zillow or Trulia allow people to add their homes for sale directly to the site (the For Sale By Owner crowd), and sometimes the data they import from the MLS is just wrong – homes that sold three years ago are sometimes listed as active.

Then there’s the homes that have a “coming soon” sign out, but haven’t been added to the MLS yet. In some ways, this is the time when a home is worth the most (in a flat market):

1. As time on market increases, the “market stigma” increases – the “why hasn’t this house sold yet” question that buyers ask means their perception of a home’s value is less.
2. Buyers often feel that they should scoop up this “exclusive opportunity” before the rest of the crowd come along
3. However: there are less people looking at the home or made aware of it, so the number of buyers looking at the home is diminished. The people that are looking (for example the people stalking homes for sale in Mueller Austin)

No matter why a home isn’t in the MLS yet, it’s possible to get your trusty buyers agent to find out more details and represent you in any potential purchase. Get in touch if you would like to find out more about any home in Austin. 512 215 4785

“Home sales in the area have been dominated by foreclosures as the low average sales price indicates.

In the last year, almost one in three sales in University Hills has been a foreclosed home. The good news is that only 4 out of 21 currently active listings are foreclosed, and the discount inventory has been clearing up. Expect some home flipping activity in the next quarter.

Remodeled home sales are faring well with several under contract including one which failed to sell last year and went off the market. We’re getting to a state now where inventory is low and sales are consistent – demand is steady and showings are up over last year.  This is a good indicator that the very local market is shifting back towards a sellers’ market. This is long awaited good news for sellers.

The market remains broad – sales prices in the last 12 months have spanned from $67,900 to $214,000, and only now are we seeing contracts on two of five homes at the upper end of the market (>$225,000)”

Will 2012 be a good year to sell your home in this sleepy East Austin neighborhood? It’s early to say, though I always recommend getting your home on the market before the Spring / Summer rush when there is less competition for the available buyers. Call 512 215 4785 to find out what your home is worth, or check out the competing University Hills homes for sale.

Mortgage Credit Certificate

The Mortgage Credit Certificate (MCC) is an optional tax credit that income qualified first time home buyers may purchase as part of their home loan. What is it, who gets it and how do you save up to $2,000 per year over the life of the loan?

What is the MCC? The Mortgage Credit Certificate is provided by the Texas Department of Housing and Community Affairs to help make home ownership more affordable for low to moderate income groups. It targets certain housing areas, including within the City Austin.

Who can get an MCC? The scheme has the following requirements on home buyers:

• First time homebuyers (have not owned a home in the last three years)
• Low to moderate income. This is defined as earning a maximum of 115% or 130% of Austin Median Family Income. This qualification depends on household size, so the maximum allowable income for a family of four in Austin in 2008 is $79,465 per year.
• Buying a home for primary personal residence
• Must take a certified home-buyer education class before closing

How much can an MCC save? The scheme provides a tax credit of up to $2,000 per year as an offset to paid income tax. This is available for every year during the life of the loan if the home is still your primary residence. This tax credit is in addition to the regular tax deduction available to regular home owners.

How much does an MCC cost? The application fee is around $75, and the certificate costs 1% of the loan amount at closing.

Which lenders can I use to get an MCC? Only qualified lenders and loan officers can apply for the MCC on your behalf. This is a list of MCC approved lenders, or I could introduce you to some that I have worked with recently who provide excellent service.

The MCC is a great way for income qualified applicants to receive additional tax benefits for the life of their loan.

Contact an Austin Realtor if you have questions about the MCC and how it can save you money on your home purchase. 512 215 4785

Check out the latest foreclosure data from RealtyTrac below.

Under contract: 2 lots

For sale: 38 lots

Sold lots: 14 (within 23 months of listing)

Failed to sell: 43 lots (ones that have been taken off the market)

If we look at lots on the market since 2005 we see that the average time on market is 6 months.

So what does this mean for a seller of a valuable lot? If you look at the lots that are currently selling, one is a foreclosed multi-family lot, and another is a huge lot just South of Downtown. There are a fair number of choices currently available for large estate home building, so it’s a tough market, with perhaps 5+ years of inventory.

If you look at sold listings, the bulk take 4+ months to sell. The sales prices have reflected seller optimism and perhaps some market fatigue.

This analysis doesn’t take into account all of the tear-down homes that an agent hasn’t listed as a lot in the MLS, though at this price point, one would hope that the listing agent would have the presence of mind to do that.

Check out all lots in Austin over $100k for sale, and all Austin lots over $1m to see what’s happening in the market right now.

Mortgage rates end the week 0.125% lower!!

European debt problems remained the primary focus this week, European officials are scheduled to meet this weekend and again next week, and they hope to release a plan for a comprehensive aid package by Wednesday. Officials are divided on what steps to take to help ease debt problems in troubled nations. With large countries such as Italy and Spain experiencing debt troubles, the potential cost of a bailout could be very high. It has been difficult to gain political support in the stronger countries, Germany and France, for aid to the weaker countries. For the countries that are at risk, it has been extremely difficult to implement the austerity measures required to receive aid, as the riots in Greece clearly demonstrate. Given the conflicting goals of the parties involved, the optimal solution is not clear. Whatever the outcome, it will likely have a significant impact on mortgage rates. A decisive plan to prevent the spread of debt problems could cause investors to reverse the flight to safety trade, leading to higher mortgage rates. On the other hand, a plan which disappoints investors could produce an increased flight to safer assets, causing mortgage rates to move lower.

The housing data released this week was mostly better than expected. September Housing Starts increased 15% from August to an annual rate of 658K units, far above the consensus forecast of 595K, and the fastest pace in 17 months. Nearly all the gains came from multi-family units, though. September Existing Home Sales fell 3% from August, which was close to expectations. The inventory of unsold existing homes declined 2% to an 8.5-month supply.

Current rates:

30 Year Fixed 4.125%
15 Year Fixed 3.5%
5 Yr ARM 3.0%
FHA 30 Year 3.875%
VA 30 Year 4.0%
Jumbo 30 Year Fixed 4.75%
Jumbo 5 Yr ARM 3.25%

My take is that the Austin housing inventory is pretty low – mostly around 4.5 months of single family homes in the markets I look at. Get in touch if you want to learn more about the housing market in your area.

I know, but you still have the land

I had a client recently close on their new home at Mueller and they had a conceptual battle with their lender – USAA. It was concerning their home-insurance, also provided by USAA.

The lender was arguing that the insurance coverage was not enough and my client was concerned as the insurance value was less than the loan and less than the price of the home. I asked local insurance expert James Snyder for his take on it, while we were kickboxing. This is my synopsis.

The lender wants the insurance to cover their loan in the event of a catastrophe (fire, asteroid impact, hurricane etc). The insurance company wants to cover the replacement cost of the building, which they calculate based on average construction costs for your area. The insurance company does not generally cover replacement cost for the lot, as their argument is that the lot is (relatively) indestructible, and hence does not need coverage.

So you end up with several different values: the cost of the home (including lot), the replacement cost of the structure, and the value of the loan.

What can you do if the lender won’t accept the coverage provided by your insurance company? Well if you called James this probably wouldn’t ever surface – his number is 512.814.7132. This is how he describes it:

“Should the lender ever fight (maybe question is a better is a word) an insurance company (more specifically me or an insurance agent) on the insured amount of a home here is what I as the insurance agent would say.

Where Can I Live Cheaply? The Midwest!

If you find a place with a low cost of living, you can make sure that every dollar you make is able to go the extra mile. In that case, heed the words of  Professor Robert Helsley of UC Berkeley, who says that the Midwest is so cheap because the entire area is landlocked. However, most people don’t even expect to get waterfront properties nowadays (especially with a bad economy), so you can go ahead and turn this into an extra benefit for yourself in order to get a lower price by not even considering the coast in the first place. If you’re really keen on having a low cost of living, you also might want to consider St. Louis, which has the lowest cost of living in the entire country.

Where Can I Find a Job? Texas!

By moving to a place with a good job market, you’ll be able to ensure that you’re not stuck in unemployment limbo for too long. In order to find a strong economy, you should check how many major corporations are in your prospective city and state. These companies bolster the economy around them and help provide lots of job openings that you can take advantage of. This is why Forbes says that “three of the best cities to earn a living” are “Dallas, Houston and Austin,” as Texas has 57 Fortune 500 companies. The only other state in the country that can match that is California, but it is significantly more expensive than Texas. The reason why those three cities, in particular, are on the list is that Dallas has 15 of those companies while Houston has 38. Of those three cities, Dallas has 15 of those large companies while Houston has 38. Austin only has 1, but it has a vibrant startup scene and is also the state capital.

What’s My Best Bet? Texas!
If you think that both a low cost of living and a strong job market are important, you should go ahead and look at Texas. Texas has a low cost of living across the state to accompany its stellar corporate presence and job market, making it the best place to move in the current economic climate. If you’re looking just for a low cost of living, the Midwest beats it out, but, for most people, Texas is currently the place to be.

James Kim writes for Austin Real Estate service Homecity.com.  HomeCity combines powerful online Austin MLS search technology and other online tools with personalized real estate services to provide clients with the knowledge they need to make the right buying and selling decisions.

First figure out what county the real property is in, and then take it to the relevant County Clerk’s office to be recorded. I’m going to tell you how to do that for Travis County.

Why do I need to record the release of lien? When you come to convey or borrow against a piece of real property, an attorney or title plant performs a title search. Part of this is to check what liens are on the property, and to establish a route to providing clear title (ownership). If you haven’t recorded the release of lien, then guess what – the lien shows up as active on the home, and your process is derailed.

How do I record a release of lien for property in Travis County? Go to the County Clerk’s office – 5501 Airport Boulevard. You’ll enter the main door and turn left with all the people applying for business names and marriage licenses. You have to take the original release of lien paperwork with you, and funds to pay for recording. The costs is $16 for the first sheet, and $4 for each additional sheet. Present yourself to the clerk and away you go.

Do I really have to turn up in person, can I do it online? You can mail the release of lien for Travis County addresses along with a check / money order to “Travis County Clerk” to:
Travis County Clerk
PO Box 149325
Austin Texas 78714

They’ll hold onto the original for a few weeks during the recording process and then send back the original to the return address that you specify.

There are electronic recording services such as those listed on the website – I’ve never used them. Please comment below if you have.

So that’s how, why and where to record your release of lien in Travis County!

Garreth Wilcock is a real estate agent for Sherlock Homes Austin – 512 215 4785

“Mortgage rates end the week¦.DOWN!!

This morning¦according to the government, 95,000 jobs were lost in September. Economists expected a net loss of only 5,000.   The silver lining is that private sector jobs grew by 64,000, but with huge government layoffs (mostly local govt™s) the net number was 95,000 total lost.  This is a positive for the private-sector, but still trailed expectations.

More good news for rates¦this week, lots of news chatter was focused on the possibility that the Fed might dump more money into the economy. It™s being referred to as QE-2 (Quantitative Easing – Round 2.) The gov™t wouldn™t likely purchase mortgage bonds like the previous program. It™s more likely they will purchase Treasury Bonds, however this action would help keep mortgage rates at their current lows or push them lower.

Current rates:
30 Year Fixed:   3.875 %
15 Year Fixed:   3.5 %
FHA 30 Year:   4.0 %
VA 30 Year:   4.25 %
5 Yr ARM: 3.0 %
Jumbo 30 Year Fixed:   5.125 %
Jumbo 5 Yr ARM:   4.25 %
30 Year Home Equity:   4.125 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount

John™s team helps Austin area buyers plan their mortgage future. Check out his Austin mortgage blog.

Garreth Wilcock is a Central Austin Realtor ®. You can search Austin homes for sale at his website.