Home Inspections
Posted: May 15, 2012 Filed under: Buying, By Lin Team, Selling Leave a comment »
You have to do it – it’s the law in Texas. When you sell your house you must fill out a form that discloses all kinds of details about the condition of the property. But most of us don’t actually know what is happening under our houses or in the attic where all sorts of problems may be hidden. Yet we are advised by those who have seen lawsuits grow out of hidden defects to “Disclose, Disclose, DISCLOSE.”
One way to improve our disclosure information is to hire a professional inspector to check our houses over with an expert’s eye and write a report that describes what he or she finds. I often recommend this when listing an old house with obvious defects, because the professional report can actually ease the minds of potential buyers who imagine things are worse – and more expensive to repair – than might actually be the case.
Having an inspection report available can save a lot of time and frustration as well, as it may prevent buyers from putting the property under contract and then withdrawing when they find flaws they didn’t foresee. Having a property go under contract and back on the market costs time and raises questions about the property, which may lead to lower offers the next time around.
Even if you are not contemplating selling your home, hiring an inspector to look it over every few years can help catch maintenance needs before they worsen and require expensive repairs.
And finally, another instance when a professional inspection can really be handy is at the end of a major remodeling job. City inspectors are supposed to check everything over but they can’t catch everything. The general contractor may not climb up on the roof or crawl under the house to be sure it is all done right, but a professional inspector will do that. Getting a final OK from an objective professional is a good thing for both the home owner and the contractor.
You don’t have to do it if you aren’t selling your house, but an inspection from time to time can be useful to managing the condition of your home to retain its value over the years.
Do Buyers Lie – or Just Change Their Minds?
Posted: May 9, 2012 Filed under: Buying, By Lin Team, Of Interest Leave a comment »
“Buyer’s Lie” we are taught in real estate training classes. I first heard this horrible-sounding phrase when I was taking classes to become an Accredited Buyer’s Representative (ABR). After we got over the shock of hearing it, the instructor went on to say that buyers often begin their search for a home with one set of ideas about what they want and then end up choosing something quite different from that. I have often found that to be true.
One of the best investments of time home buyers can make is to visit at length with their Buyer’s Agent about how they live and what kinds of houses they have enjoyed living in. Then a tour of possible housing choices can educate their agent so that he or she can serve them better in their search.
Because people know I love and understand old houses, they often come to me to help them find one. But as I listen to them describe what they want, and as I take them to see different kinds of houses, it turns out that they like the idea of an old house but they don’t actually want to live in one.
Many years ago I worked with a couple who lived in a Victorian-era historic house in Hyde Park to help them find a home, and the search ended up with a modern house on Mount Bonnell. Although they hadn’t anticipated it, the features they enjoyed about the Victorian house – tall ceilings, large windows, transoms and fine woodwork – were also found in a house that was really quite contemporary. They felt right at home in a new house because of the familiarity of the elements they enjoyed in their Victorian.
It is not fair to say buyers are liars, but it is helpful to remember that they often do change their minds and buy something different from what they specified when they began their search. So we try to listen carefully to what they say and help them identify what they really want in their new home. And that’s the truth!
Lin Team
Protesting Your Property Taxes? Three Critical Points to Know Before You File
Posted: April 26, 2012 Filed under: By Lazan Pargaman, Financial, Of Interest, Taxes Leave a comment »
The new 2012 property tax values for most properties have been released by Travis County Appraisal District this past week. You can look up your tax appraisal value at The Travis Central Appraisal District.
Our property tax expert, Mr. Jeff Bullard of Tax Remedy, Inc., informs us that some values have gone up dramatically. Apparently the TCAD appraisers focused on commercial office buildings, retail shopping centers and class A apartment buildings for big tax increases this year.
He reports that most residential valuations seem to be the same as last year in outlying areas, but went up a good bit in close-in Central and West Austin neighborhoods, including Westlake Hills and Rollingwood.
Mr. Bullard advises three VERY IMPORTANT things for you to do after you receive the Notice of Appraised Value soon to be in your mailbox:
1. Don’t file your protest until near the end-of-May deadline. You want to be the last appellant, never the first. File by certified mail, return receipt.
2. Check both of the first two boxes under Step 3 of the Protest: Value is over market value and Value is unequal compared with other properties.
3. Write these magic words in Step 4 of the Protest: “Request Taxpayer Information Packet.” Don’t write anything else, it will be ignored or used against you.
Mr. Bullard has offered to provide any of our clients with detailed reports of the proposed 2012 tax appraisal of their properties at no cost and no obligation. Just email your address and/or property tax ID# to: Tax Remedy and please note that you were referred by Kinney Company Real Estate.
Mr. Bullard’s firm, Tax Remedy, Inc., has successfully negotiated actual tax savings of more than $55 million to date for his clients throughout the Central Texas area. Thank you, Jeff, for sharing these important recommendations with us!
EIGHT THINGS TO KNOW ABOUT YOUR PROPERTY TAX
YEAR END PROPERTY TAX CHECK LIST
A Title Commitment Does Have Consequences
Posted: March 28, 2012 Filed under: Buying, By Patrice Arnold Leave a comment »Don’t Let Document Fatigue Prevent Careful Review
Most property sales contracts provide for the buyer to receive a title commitment shortly after the contract is signed and a title policy after closing.
The title commitment identifies all of the recorded documents that affect the property such as easements, restrictions, liens, reserved mineral interests, etc.
The buyer usually has a short window of time to object to a matter that is identified in the commitment. For example, if the property does not front on a public road and there is no express easement that connects the property to a public road, the buyer can object. The seller has an option to correct the problem (provide a satisfactory easement) or refuse to do so and risk having the buyer terminate the contract.
The title policy is issued after closing, and insures the buyer’s good title, subject to exceptions. The exceptions should match the items identified in the title commitment, minus the items that the seller “cured” prior to closing, plus items that the buyer added (like the buyer’s mortgage).
Review the Title Commitment with Care
Many buyers are tempted to rely on the lender to review the title commitment. They assume that if their lender does not have a problem with the title commitment, then everything must be okay. That is a misconception.
Most mortgage lenders are unconcerned about many types of restrictions that could make the property unsuitable for a buyer’s particular needs, such as a prohibition on converting a garage into a bonus room or parking a recreational vehicle or boat in the driveway.
The buyer and agent should review and discuss the title commitment and the recorded documents that come with the commitment. In most cases, this review will not require hiring a lawyer. If there is something that the buyer does not understand, the best course is to seek legal counsel before it is too late to terminate or modify the purchase contract.
In summary, reviewing the title commitment is an essential step in purchasing property. A buyer should not let document fatigue prevent review of restrictions that define how a property may be used, impose fees that the property owner must pay, or that contain other important matters.
Patrice Arnold is an Attorney at Arnold and Associates in Austin, Texas.
When Updating Your Home, Restraint is a Virtue that Will Serve You Well
Posted: March 20, 2012 Filed under: Buying, By Miranda Kinney Daves, Of Interest, Selling 2 Comments »
I’m not a design professional, but I am inspired by beautiful design no matter its level of economy. I can assure you bad design knows no economic boundaries. I’ve seen some pretty awful stuff in some really expensive homes where finances were not a limiting factor in design choices. On the other hand, I’ve seen some really good design in some very small, affordable homes because the appropriate material selections were made.
Choosing materials, color and designs that are appropriate for a specific space will serve you well as a homeowner and a home seller. I also recommend that you seek the advice of a good designer. Professional advice is usually money well spent and will save you headaches and regrets in the long run.
Above all, beware of trends. Remember that trends come and go, but good design endures with a solid return on investment.
MIRANDA KINNEY DAVES
Realtor®
m: 512-658-0615 o: 512-452-5599
miranda@thekinneycompany.com
It’s Time to Support Austin’s Parks
Posted: March 5, 2012 Filed under: By Lin Team, Living in Austin, Of Interest Leave a comment »
When I moved to Austin in 1979 I was amazed at the public parks I found in every neighborhood. People swam, played tennis and golf and ran on trails throughout the city. Austin had the most parkland per capita of any American city. This was particularly impressive to me because I came from Fort Worth, a place where no one could do anything fun at all without belonging to a private club. (I hoped things had improved there over the years, but when I visited last June I found that ALL the public pools were closed for the summer due to budget reasons!)
Over time I learned that Austin’s abundance was not an accident, nor the result of any greater wealth. Austin for the most part had always been a middle-class town, with an economy dependent upon university and state government jobs. So what accounted for the many public parks? I discovered that years ago visionary city leaders such as Mayor Tom Miller, Councilwoman Emma Long, Lady Bird Johnson, Roberta Crenshaw, Beverly Sheffield, Mayor Roy Butler and Roy Guerrero committed the resources to establish recreation facilities all across town. They led in developing not just parks and pools but centers with extensive programming, including organized sports, dance classes, summer camps, arts and crafts classes and neighborhood festivals. These leaders were also instrumental in opening opportunities to African Americans, forming the basis for Austin’s more liberal reputation among Texas cities Their courageous leadership created the foundation for Austin’s attractiveness and growth.
Sadly, our City officials in recent years have forgotten or abandoned that vision. They are starving the Parks and Recreation Department (PARD) while seriously contemplating giving public money to private organizations run by people not accountable to the citizens. They demolished the old Austin Recreation Center by neglect, and are now contemplating selling off the newer facility there. They have practically destroyed Hancock Golf Course by not watering it (despite the gray water line passing alongside) or investing in maintenance that would make it attractive to golfers, then claiming it is not economically viable because it isn’t played enough! With the increasing density of Central Austin and the anticipated closing of Lions Municipal Course, Hancock could be a very active course if it were improved and maintained.
The Imagine Austin planning process has asked us to identify what makes Austin good, what makes us want to live here. These are important questions to ask ourselves because so often we take our public amenities as a given. We don’t see the lovely parks and historic buildings and neighborhood schools as something that might not be here, so we take them for granted — until they are threatened. These neighborhood resources are the foundation that builds community, defines culture and makes a city work. Yet I believe all these things are endangered by the trend toward expecting everything to pay for itself and function without public support. This short-sighted thinking risks the loss of irreplaceable assets and essential elements of Austin’s egalitarian lifestyle.
The present work of the bonds committee is an opportunity to push back on this trend and renew our commitment to public facilities. I encourage people to express support for a bond package that includes investments, improvements and deferred maintenance for our parks. Other measures are needed in the regular budget, but the bonds offer an immediate opportunity to repair some of the shameful neglect of recent years.
I believe the Austin we have enjoyed as a legacy of those earlier visionary leaders is worth fighting to maintain. Everyone can make their views known on this by going to the City of Austin’s I Can Make It Better page. Progress on the bond work can be tracked by checking in on the City’s Bond Development page.
Home Owners Associations
Posted: February 28, 2012 Filed under: Buying, Living in Austin, Of Interest Leave a comment »Know Their Purpose and Their Power
By Patrice Arnold, Attorney at Law
Buying or selling a condominium or a home that is less than 30 years old? Then you’ll likely have to deal with a home owners association. The association is entitled to collect fees that support amenities (swimming pool, club house), neighborhood infrastructure (retention ponds, entry features), and administrative functions (purchasing insurance, enforcing deed restrictions).
Be a Savvy Buyer:
The Association must record all rules and restrictions in the property records in order to enforce them. Therefore, these rules and restrictions will be listed inside your title commitment. READ ALL USE RESTRICTIONS. Common restrictions include: prohibiting the parking of RVs and trailers in places visible from the street, not parking in the garage, converting the garage into a bonus room and erecting prefabricated portable buildings or sheds in the backyard. Condominium restrictions can be even tougher, including limitations on pets and leasing.
Your realtor or lawyer can help you identify restrictions listed in your document that you need to carefully consider.
GET A RESALE CERTIFICATE. A resale certificate identifies violations of the restrictions. Buyer beware: The law requires that the association disclose known violations – but there is no requirement that the association do an inspection to discover violations. Always ask the association to do a property inspection before issuing the resale certificate, and be willing to pay a little extra for this service. If a violation is discovered, you can require the seller to remedy it prior to closing.
Be a Proactive Seller:
To avoid last minute surprises, ASK FOR THE RESALE CERTIFICATE AS SOON AS THE SALES CONTRACT IS SIGNED. If the resale certificate exposes an unexpected problem, you’ll want as much time as possible to have it remedied before the closing date nears.
As soon as you list your property for sale, ASK THE ASSOCIATION WHAT IT CHARGES FOR RESALE CERTIFICATE FEES AND TRANSFER FEES. You can then make an intelligent decision about allocating those costs and put that allocation in the contract.
Some Restrictions Cannot be Enforced as Written. Some common restrictions have been preempted or modified by state or federal law. These include restrictions on satellite dishes, political signs, flags and flagpoles, religious displays, solar devices, certain types of xeriscaping, and water harvesting. All of these items can still be regulated, provided that the regulations meet statutory requirements. Do not make the mistake of assuming that because there is a law on a subject, existing restrictions are no longer enforceable.
Patrice Arnold is an Attorney at Arnold and Associates in Austin, Texas.
Neighborhood Associations: Democracy in Action
Posted: February 7, 2012 Filed under: Buying, By Lin Team, Living in Austin Leave a comment »
When looking into Austin neighborhoods to consider where you may want to live, it is helpful to know as much about them as possible. One important feature is the Neighborhood Association. Areas with strong and active associations have better protection against unwanted changes and intrusions than those that don’t.
In newly developed subdivisions there are almost always Homeowners Associations, which function with certain legal authority over the properties within their bounds. But older neighborhoods commonly have Neighborhood Associations, which are different: they are completely voluntary and depend upon residents becoming involved and knowledgeable about city planning and zoning. The best neighborhood associations combine both social and work activities, building neighborhood pride and a sense of community.
You can check out Neighborhood Associations, on the Austin Neighborhoods Council web site, a network of these voluntary associations. It has area maps, links to the neighborhood websites and lots of useful information. The City’s Planning and Development Review Department web page contains all of the Neighborhood Plans.
All politics, they say, are local, and neighborhood associations are the basic building block of Austin’s political life. Most Austin neighborhoods now have Neighborhood Plans, which have been developed under City auspices and are used to guide future land use and neighborhood improvements. The process of developing these plans can bind a diverse group of neighbors into a strong commitment to a common vision for their neighborhood.
The best way to preserve your property values and assure that the neighborhood where you live maintains a good quality of life is to actively participate in your neighborhood association. Sometimes neighborhood association work is tedious, and even boring. Sometimes it is contentious, as people are bound to differ on decisions for the association. I have experienced all those realities, as I have been involved in neighborhood work since I moved to Austin in 1979, first in West Austin, then Hyde Park, and now in Eastwoods. I was president of the Hyde Park Neighborhood Association in the mid-1990s and currently serve as president of the Eastwoods Neighborhood Association. I was also on the Plan Team that developed the 2004 Central Austin Combined Neighborhoods Plan, which covers seven neighborhoods adjacent to the UT campus, and I continue on the team that monitors that plan.
Neighborhood organizations are the most basic element of democracy and they depend on citizen involvement to function. I encourage everyone to attend neighborhood meetings and join in protecting and improving their part of Austin.
Austin Back in the Day
Posted: January 22, 2012 Filed under: By Lazan Pargaman, Living in Austin Leave a comment »Do You Remember Austin (Back in the Good Old Days) is a new YouTube video that’s quickly gaining a cult following among those — including myself — who love to romanticize about the Austin of our youth. This photo montage of beloved Austin icons and landmarks set to upbeat country music offers a happy stroll down memory lane. DO YOU REMEMBER AUSTIN (BACK IN THE GOOD OLD DAYS)
A special childhood memory for me is going to the Chief Drive-In theater with my mom on Friday nights. We would watch westerns, eat pizza and I would usually fall asleep in my pajamas in the back seat. Those were great times and I’m so glad to have those memories.
As a native Austinite, watching Austin grow has been bittersweet for me. The nostalgic side of me yearns for the small town Austin of my youth, but my pride swells when I admire the vibrant and sophisticated city Austin has become.
While some may wish Austin would stay the small hometown it once was, I realize change is inevitable and growth has many good points. I welcome new Austinites with open arms and encourage them to embrace our wonderful city for all that it offers. There is much to see and do, many meaningful community activities to get involved in and lots of interesting and worthwhile people to get to know.
So, no matter how fondly I remember small town Austin, my motto is “Welcome to Austin, folks.” Please come and stay awhile.
“Wow” Real Estate
Posted: November 15, 2011 Filed under: Buying, By Lazan Pargaman, Selling Leave a comment »
When you encounter something extraordinary, it’s typical to say “Wow!” This year we’ve seen a few “Wow” real estate transactions. One being the Los Altos, California estate purchased by a Russian billionaire at the reported price of $100,000,000! Another Russian billionaire purchased a “Wow” property for his girlfriend, U.S. super model Naomi Campbell. Located on Cleopatra’s Island in Turkey, and built in the shape of the Egyptian Eye of Horus, this futuristic compound is eco-friendly and entirely sustainable. Click on the link to get a bird’s eye view: http://www.cnbc.com/id/44685769?slide=1
In Austin, a waterfront property that sold for $6,000,000 is the most expensive sale of the year to date. The second largest sale was for $4,200,000. Both of these properties were “Wow” properties. Since January 1, Austin has seen 144 sales over $1,000,000 registered in the Multiple Listing Service. Although the market has seen some cooling in the past couple of months, Austin’s high-end home sales have fared well this year as compared to other markets in the country.
Not all homes over $1,000,000 in Austin are “Wow” properties, but Austin does have some really special homes. Often, a “Wow” property entails good architecture, a wonderful location, perfectly suited furnishings, a spectacular garden or other elements of good taste and design. Austin has more of these than most cities of its size.
Sure, expensive properties are most often the “Wow” properties, but not all “Wow” real estate has to come with an over-the-top price. “Wow” can come from finding the one home that perfectly suits the lifestyle and taste of its owners.
When I show a home to clients who recognize that specific home as the perfect fit for them, that’s a “Wow” moment. Sometimes that happens on the first day of looking, and sometimes it takes a while to find. But nothing beats that moment of realization when we’ve hit our target; we’ve reached our goal; we’ve found the right place. That’s a “Wow” real estate moment!
