A Client Short Story: The Madruga Family
The Madruga’s “Welcome to Texas” Story.
From the very beginning, Debbie and Joaquin Madruga were clear about their goal. They wanted to sell their Denver home and relocate close to their soon-to-be-born grandchild, their son and daughter in law and another son, all in the Round Rock area. They made an exploratory trip to Round Rock and narrowed down their preferred area, then returned to Denver. In a few weeks they actually negotiated the purchase of their new Meadows of Brushy Creek home from Denver, based upon a home tour conducted via Skype and an iPhone. This was clearly a family project and we were all very relieved that when they actually saw the home (the day before closing) they fell in love with it.
Here’s Our Interview with Debbie Madruga
What do you love most about your home? I love this house! As I was unpacking I found a lot of little things I hadn’t noticed before. We found a secret room in one of the closets that leads to storage space in the attic – Yea! The ceilings are very high in this house so it seems very elegant to me. I love the tile work; they have patterns in the floor that are carried to the breakfast area. I love the way the walking path is right beside us so I only go out the door and start down the path for a beautiful walk.
How would you describe your home? Any projects you are wanting to do? We have a nice sized home, most of the living area is on the first level with a couple of bedrooms and bath upstairs. There are great shade trees that will help during those hot summer months. The yard area is a lot bigger than we realized so we hope to put in some gardens and plant more trees. The house is in good shape so we get the fun part of just decorating it!
How did you find the Texas Open Door team? We found Texas Open Door Realty through a friend of my son’s at work. We lived out of state so they set up a web page for us to check out the properties online. This was extremely helpful. I got a good education on the neighborhoods and features that we wanted in a home during our house hunting trip to Round Rock. The Texas Open Door team answered all of our questions, helped us get set up with a great loan officer and inspectors and whatever we needed. In fact, the home preparation guidance we received while in Round Rock helped us get our Denver home ready to sell and it sold in 20 days.
What have you learned about your neighborhood? Are there places you want to explore? The day we moved in one of the trees split during a wind storm, fell on our fence and blocked the walking path. It was a good way to meet the neighbors! The neighbor behind us came over and brought his chain saw and helped chop up the limbs and bundle them. Several people offered to help us. We decided that night that we had made the right move!
I look forward to checking out the markets and fairs in downtown Austin and surrounding areas. My son says Texas has the best barbeque around. I plan to go to the water parks, go tubing down the rivers and look forward to doing some water sports.
Dan/Sondra/Dec. 2011
Getting Credit for Your Credit Score
Here is some great advice on things you can do to positively affect your credit score. Having a high credit score is a very important component in qualifying for a loan and receiving the best interest rate available for your home loan.
8 Ways to Improve Your Credit
Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.
1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.
Lights, Music and Fun: Central Texas Holiday Events
Here’s a great list, compiled by Gracy Title, of holiday lights, festivals and other fun things to do in Central Texas. Explore the list for events that you can turn into new holiday traditions or just something different for this year. And put those events on the calendar now; you know your schedule is going to be crazy very soon!
Click here to read about upcoming 2011
holiday events and festivities in Central Texas
Real Estate 101: “Preparing for the Leap”
“Vital Steps to Take to Get Ready to Buy a Home”
In recent times, the dream of buying a home has lost some of its luster. Difficulties in obtaining financing have taken many buyers out of the market place. The rules for obtaining a mortgage loan today are stringent. About 30% of people that purchased a home in 2006 would not be able to do so today because the qualifications for buying a home have become so strict. About 50% of my real estate business, is helping buyers find the home of their dreams, (at least that is my goal). And although it may be more difficult to buy a home, it is definitely something that is within the grasp of those that set it as a goal and pursue it. The Dream is definitely alive in Austin/Round Rock and I would like to help you go after it.
I would like to use my weekly contribution to our TODR blog to share important information for buyers that we have found will help you in preparing for your next (or perhaps your first) home purchase. Home ownership is still one of the most rewarding and hopefully profitable experiences that a person can make. The first few articles will talk about preparing your finances and your credit score for home purchase. Much of this information comes from the National Association of Realtors.
8 Steps to Getting Your Finances in Order
- Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.
- Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.
- Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
- Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.
- Save for a down payment. Although it’s possible to get a mortgage with only 3.5% to 5% percent down you can sometimes get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent down payment.
- Create a house fund. Don’t just plan on saving whatever’s left toward a down payment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
- Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
- Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.
It may take you a while to get these things in order but it will pay off in the long run. Here is to making your dreams a reality!
Dan/Nov. 13, 2011
Does Texas Have the Worst Drivers in US?
The answer is “No”, according to a new CarInsuranceComparison.com poll. Texas has the third worst drivers in the US. The study was based on drunk driving, failure to obey signals, fatalities and traffic ticket data. Ugh…
I found this study interesting because many of my clients moving to Texas from other parts of the US have complained about the lousy Texas drivers; a complaint I had assumed was exaggerated. I guess they were not exaggerating after all. Texas ranked below Missouri and Louisiana, which made the top of the list. The report also struck a blow to Southern hospitality by noting a trend that Southern states are more dangerous than states up North.
I’ve concluded that my trips to Mexico must have downgraded my driving standards. In which case my next vacation should be spent in Rhode Island which has the safest driver among the 50 states, according to the study. On the other hand, that might not be a good plan. Better to go to Mexico and brush up on your driving survival skills.
Sondra/Oct. 11, 2011
Market Opinion: Which Way is Our Housing Market Headed?
Here’s the latest market information for Williamson County, courtesy of the Williamson County Association of Realtors. This graph shows the year to date number of homes sold compared to the last 5 years.
You may have heard the hoopla recently about the increase of home sales during the latter part of this year over 2010 . But comparing last year’s home sales to 2011 sales is about like measuring next years’ rainfall against this year. Brown grass versus dead grass might be an improvement next year, but it’s all a matter of perspective. Last year we saw a remarkable resurgence of the market in April/May as buyers ran to take advantage of the $8000 tax credit before the deadline. However, as the 2010 graph below clearly shows, the tax credit sucked the buyers out of the market with a straw, leaving a flat market for the remainder of the year. The tax credit created an artificially high market followed by an artificially low market, so there’s really no point in the year during which to make a meaningful 2011 comparison.
However, even though I don’t put much stock in the 2010/2011 comparisons, I do think there is a very strong 2011 story to tell. I’ve heard several economists make what they believe to be an important distinction between our present recession and economic recessions of the past as far as recovery is concerned. The point they make is that in the current recession they believe the housing market will follow the jobs market and other overall economic factors, instead of visa versa. So, viewed from this perspective of the economy leading the housing market to recovery, there is plenty for us to be optimistic about. Here’s a short list:
- Our less than spectacular Texas housing market turned into a Cinderella story when we did not suffer the fall of housing prices with the majority of cities in the U.S. In fact, housing prices are projected to rise slightly this year.
- The foreclosure rate is steadily decreasing.
- On every front, leasing activity has been brisk and occupancy rates rising steadily.
- Building permit activity is still strong, especially in the area of multi-family which rose 38% in the first six months of this year.
- Our unemployment rate fell from 7% to 6.5 percent earlier this year, an indication that somebody out there is hiring.
- Metro area Austin’s population is expected to grow nearly 15% by 2012. (Source: Moody’s Economy.com).
When interest rates dropped under 4% and the number of mortgage loan applications dropped in the same month, (see Oct. 8th post ”Interest Rates Fall Below 4%”) I think it was a clear indication that it is going to be jobs and confidence in our economy that put buyers back in the marketplace. The list above represents good things that are going on around us, steps which should lead to the confidence the buying public needs to get back in the market. I’d like to know your perspective.
Dan and Sondra/Nov. 8, 2011
158 People Moving to Austin Every Day….Why Should I Care?
According to local economist Mark Sprague, approximately 40 families (158 people) are moving to Austin every day. Why? More importantly why should you care? I know people say, “All this does is make my commute to town longer and longer.” But let’s not be short sighted. If you own real estate in our area, the influx of people or lack thereof matters to your bottom line. The faster a town grows, the greater the opportunity for appreciation in its real estate, and that is especially true in an economy that has made it very difficult for home builders to keep up with long term demand for additional lots to be prepared for development. The fact that builders have not been able to develop new lots at a rate that will keep up with long term demand is putting pressure on the existing new home supply. That, combined with the very high occupancy (96%) of existing rental units, climbing rental rates and mortgage interest rates near 4% means we should see rising resale prices in the near future.
Why are people moving here? We all have our reasons for liking it here but below are a few from an economic perspective:
- Relatively moderate climate (we can pretty much do business year round with no weather-related interruptions)
- Centrally located to major population centers of Texas (Austin is a good business hub to reach out to the major cities of Texas)
- Several growth industries present (Dell, Samsung, HP, etc.)
- Several “recession-proof” industries such as state government, higher education and medical facilities
- Top vacation destination venues close by (gulf coast, theme parks, professional sports teams, highland lakes, hunting and fishing spots)
So the next time you find yourself complaining about sitting in traffic on I-35, remember that the delay may actually be evidence that your bottom line is growing.
Help me with my list….what is your favorite thing about living in the Austin area? Click HERE to go to our Facebook page and give us your thoughts. Everyone who responds is eligible for our Starbucks gift card drawing that will take place next Friday, November 11.
Dan/Oct. 3, 2011
Great Freebie: “A Taste of Texas In A Bottle”
Sorry, the freebie isn’t a bottle of wine; however it’s the next best thing. Our friends at Gracy Title have produced a great Texas Wine Guide, “A Taste of Texas in a Bottle”. The guide lists Texas wineries (including those with vineyards and those without) and gives a map and detailed information about the selections and attractions available at each, plus a list of local wine bars, festivals and events and even the history of wine making in Texas.
As this wonderful Fall weather beckons us outdoors, here’s a plan: Download the Free Guide. Hear the call of the Texas Hill Country and set out to explore the Texas Wineries nearby. (And save your money for the wine…)
Gotta tell you, I wouldn’t miss Becker Vineyards and Sister Creek. Do you have a favorite?
Click below for the pdf download. Salud! Sondra/Nov. 2, 2011
Honey, Stop the Car… Spectacular SoCo Home
Austin, the creative hot spot in music and Texas “hip” is also home to some fascinating architecture. This “Honey, Stop the Car!” moment is certainly modern eye candy. Located in the trendy SoCo (South Congress) neighborhood, the home was created to be a 2480 sq. foot work of art. Even if aren’t a modern homes fan, you will find the materials and level of creativity in the home spectacular.
Designed by Spaller Glover Design Build, it is called “The Barcelona Modern”. The MLS listings states, “Huge custom-built round windows punctuate the smooth, white masonry exterior, 11 ft ceilings, Circa lighting fixtures, chevron pattern white oak flooring, amazing Carrara marble kitchen with Wolf range and SubZero fridge/freezer, extravagant master bath lined with onyx tile and focused around a giant hemispherical glass tile soaking tub.” The home also has a gated entry and you can walk to South Congress. All for $875,000 (reduced from the original asking price of $929,000) or $352 per square foot.
Here’s the link to the virtual tour. My favorite things in the home are the Carrara marble (I have Carrara marble envy), the round soaking tub and the master vanity… gorgeous! So, what do you think, could you live here?
http://tours.tourfactory.com/tours/tour.asp?t=786432
Sondra/Nov 1, 2011
How to Sell Your Home in 24 Hours
What does it take to sell your home in 24 hours? Here’s the lowdown from the Fox Business Network. The list contains three strategies we’ve seen work time and again, in good markets and in bad, and a surprising fourth strategy involving social media.
1. Price the property “ahead of the market”
Real estate professionals say a home’s price, relative to everything else on the market, is the main determinant of how quickly it will sell. To elicit speedy offers in the current environment, homeowners must price properties aggressively and also price “ahead of the market,” says Lisette Guzman, a Realtor in Westfield, N.J.
This means closely monitoring local sales trends and pricing it in line with those trends to help demonstrate value. After all, “serious buyers know fair market value,” says Guzman, because they’ve typically scoured the Internet, toured multiple homes and even considered mortgage rates before making an offer. “That’s why all homes that sell very quickly are priced right,” she adds.
2. Turn the house into a model home
Aside from price, the report states the next biggest factor in getting a home to sell immediately is the property’s overall presentation. This includes displaying the home and the furniture like a model home that looks good, feels good and smells good. The article advises you to “hire a stager and professional photographer, emphasize curb appeal, paint the walls, and refinish the floors. If someone’s going to make an offer on a home just after seeing it, they don’t want to worry about repairs or improvements, they just want to drop their bags and move in.”
3. Go heavy on the documentation
One way to prompt immediate offers is to answer every question a buyer might have about a property upfront. Everything from the condition of the home, the repairs and upgrades made to the utility bills and appliance or structural warranties help buyers to move forward. Fox Business Network advises you to “serve everything up on a platter” to move the decision to buy along quicker.
4. Social media is a must
To raise your chances of getting an offer on day one, according to the Fox Business Network it’s critical to put the word out about the home through every possible marketing channel, including Facebook, blogging and other social media.
Their example was Ryan Hukill, founder of the ShowMeOKC Real Estate Team in Edmond, Ok. who recently sold a four-bedroom, three-bathroom home for its $395,000 asking price after he posted a note about it on Facebook. The buyer’s agent immediately got in touch with Hukill and asked for photos. By the next morning, the buyers viewed the home and fell in love with it.
So, it’s not “rocket science” is it? Good, common sense ideas to fly your house off the market in 24 hours. Each strategy represents a lot of hard work though, even the social media strategy. For the complete article, here’s the link:
Sondra/Oct. 20, 2011
