BrinkTank! - Austin Texas Homes & Real Estate Blog

James Brinkman, Austin Real Estate Broker, Realtor, CRS, ABR, ePro

Holy Smokes Batfest!
8/30/200610:53:49 PM Link | | Add comment
Around Austin, Uniquely Austin
If you are looking for something to do in Austin this weekend, try on the second annual BatFest for size.

Austin is famous for it's bats - the over 1.5 million Mexican free-tails that make the underside of the Congress Avenue bridge home. It's the largest urban bat population in North America and you can catch it from April to October. I've been out there on several occasions over the years, it really is a spectacle to see. As dusk falls, the first bats start coming out from underneath the bridge. Within a minute or two the trickle has turned into a flood of little, dark spots darting through the sky in an almost wave-like motion. Every time I've been the wave heads east initially, following Town Lake for a stretch, before turning back and heading west. It is certainly one of those things you should do at least once if you are in Austin during those months.

BatFest is this weekend, September 2 & 3, and should include more than 150 arts, craft and food booths, musical performances as well as bat education and, well, watching. There is also a contest in which local hotel bars compete to make the best Batini using Tito's Handmade Vodka (local product, award winning).
We're #2! We're #2!
8/29/200610:50:52 PM Link | | Add comment
Buyers, Closing Information, Home Buying, Home Selling, Local Real Estate Information, Real Estate, Sellers
And not in a good way!

According to Bankrate, Inc. and their 2006 National Closing Cost Survey, Texas ranked #2 for average closing fees. The survey found that the average closing costs/fees for a $200,000 loan, 20% down, 30 year, fixed rate, for a buyer with good credit was approximately $3,578. This is based on a single family home. They arrived at their number by picking a zip code in some of the largest cities in each state and obtaining 8-10 good faith estimates (total) from the websites of online lenders in each state.

More here...

I would be interested in seeing a larger representation than 8-10 good faith estimates total from just online lenders. I'm not quite sure that the information will give you the most accurate picture of the situation.

That said, it's probably a good guide to use when estimating your costs. Keep in mind, those costs will change if any of the variables change on the loan. Additionally, checking with a couple lenders will usually help you reduce your costs slightly, as competition always brings out the best. That said, after many years in real estate, I would never trade the quality of the lender to save a few hundred dollars at closing. A bad lender can cost you quite a bit more in the end, and it pays to have a lender that takes a personal interest in you and your home purchase.

I've worked hard over the years to try to partner and recommend lenders of only the highest integrity. It hasn't always been easy, and I've broken off allegiances when I felt a lender misled or mistreated a client, but I feel I finally have a few good ones at the ready. If you would like any recommendations, please don't hesitate to email me at Brink@WestElmProperties.com or use the Contact screen in the website.
Sunday Readings
8/27/200611:57:31 PM Link | | Add comment
Around Austin, Cedar Park, Local Real Estate Information, Real Estate, Sunset Valley
Sunday's I try to do a little catch up reading from the Statesman website to see if there are any articles of interest that I missed during the week.

Here are a couple related to the ever-growing Austin market and real estate:

Cedar Park's first major retail center to open next year - If Cedar Park were a stock, and I was a stock analyst, I would have Cedar Park rated a strong buy right now. Value priced, hit pretty good during our 'downturn' of 2000-2004, and poised with all sorts of positive signs showing its about to starting a nice ride up. I have quite a few thoughts here, but I have to save some of them for my clients.

Last big development in Sunset Valley - Homes and retail. Gee, starting to see a trend here in the Austin area! Sunset Valley has seen tremendous growth over the past decade, including substantial retail development. It's located in Southwest Austin near the Brodie and 290W area. As the article mentions, there are only 475 residents actually in Sunset Valley (which is its own incorporated area), but there are more than 91,500 people living within 3 miles of Sunset Valley. If you live in Southwest Austin, possibly in Legend Oaks, Western Oaks or Travis Country, and you need one of the big box retailers, chances are you can find them at that corner of Brodie and 290W.

First apartments for Mueller - Personally, this will be one of the more interesting projects to see take place over the next few years - the building on the old Robert Mueller (pronounced Miller, just so you know). I've been getting quite a few clients who have been interested in the areas surrounding the old airport, such as University Hills and Vintage Hills, and its really starting to develop a cool, funky, yet affordable, vibe. There are some very solid pockets within University Hills and Vintage Hills and the age of the houses is such that it's fairly similar to those areas running just north of Hyde Park, such as Allandale, Crestview and Skyview, but a little more affordable. The mixed use plan for the old airport, hopefully, will add to the funky vibe.

Gas prices drive up Realtor's costs - Hmmmm, you probably don't care about this one as much as I do, do you? Ha ha. I will say this though - this was the second thought (the cost of gas) I had after an experience this afternoon. I had someone call last night on a listing I have in Round Rock and I set an appointment with them today at 2:30 to show them the home, on behalf of my seller. I arrived at 2:25 and waiting until 2:55. I left a message for the caller, and I want to believe the best of people, but after I had rearranged my day, thus missing out on a few hours with my family, and spent about $6 in gas getting there and back, it was a gentle reminder of how much I appreciate simple considerations, the fantastic referrals from my clients and friends, and how I need to continue to pre-screen. So much of my business is from referrals from my past clients that there is an inate sense of trust right from the start and I know that I tend to carry that over to people who aren't referrals.

If you'd like more information about any of the areas that I have mentioned, or are mentioned in the articles, including Cedar Park, Sunset Valley, Legend Oaks, Western Oaks, Travis Country, University Hills, Vintage Hills, Hyde Park, Allandale, Crestview and Skyview, please feel free to contact me directly at Brink@WestElmProperties.com or you can use the contact page here!
It's a Beautiful Thing
8/23/20069:45:27 PM Link | | Add comment
Around Austin, Music, Uniquely Austin
I have to admit, I have been watching Rockstar Supernova. Being a musician and having my own band I love to watch other musicians to see what I can learn from them. Sometimes we call it stealing but I think we all have influences. The other reason, the main reason, I have been following this year's version of Rockstar is because of Patrice Pike. I tuned in originally just to find out who the 'band' would be this year only to see Patrice's face flash across the screen. I turned to my wife and said, 'I think that was Patrice Pike!' Sure enough, it was.

I have some of Patrice's cds from previous incarnations including the Sister7 days and more recently the Patrice Pike & The Black Box Rebellion and have always enjoyed her music. I've also been fortunate enough to catch a few of her shows. She's a fantastic live performer - I'm not sure that ever came completely through on the Rockstar Supernova show.

Tonight was her last night on the show but it was good to see her go out blazing with her new song last night: 'Beautiful Thing' . I always dig her lyrics, and 'Beautiful Thing' definitely had some nice hooks and great vocal melodies. I found myself humming today and it took me a second to realize what I was singing.

Official Site of Patrice Pike - You can find more about her new album here.

Patrice's My Space - There is a version of 'Beautiful Thing' on the site, as well as some older songs.

Hopefully this new exposure from Rockstar Supernova, and the new cd, will take her to new heights. You go get em Patrice. You've made Austin proud.

(as an aside - I also actually have a real estate/Patrice Pike story - kind of off topic. I was at a house off South Congress one time that a client had under contract. I had finished up with my client and was looking at something on the home when up walked Patrice. She asked how much they were asking for the home, I told her and that my client had it under contract. I remember I blanked on her name, though I did say - Sister7 - but I felt a little silly. She was super cool about everything though. lol)
Bedtime Reading
8/20/200611:52:16 PM Link | | Add comment
Home Buying, Local Real Estate Information, Market Statistics, Mortgage, Real Estate
A couple of Statesman article links for you on this Sunday:

50 Year Mortgages - Aaack! - Count me among those who doesn't really see much good, but a whole lot of potential bad, about these types of loans. In a perfect world, I would love for all of my clients to be able to put 20% down and have 15-20 year mortgages for their personal home. Of course, it's not a perfect world so I think there are still plenty of benefits to home ownership with much lower amounts down, but I do think it is pretty important to stay within your means, and much of the time interest only loans, and, by extension, 50 year mortgages, are used to stretch the amount of home a buyer can afford. Call me silly, but I'd much rather have a client who is able to comfortably make their mortgage payments and actually have a little money to enjoy their life than a client who has to use special financing to stretch themselves into a more expensive home and then be stressed out about having to make the payments every month. Maybe its just me...

Here's a story regarding what Mark Dotzour, chief economist and director of research at the Texas A&M Real Estate Center, predicted for Austin and Central Texas real estate in 2007. Good stuff.

Nothing my clients don't already know, but the story here covers the continuing strength of the Central Texas real estate market. Beyond the overall monthly statistics, I found the jump in sales of high end houses to be particularly interesting, with sales of homes priced over $1,000,000 up nearly 50%. The article also reference that Travis Heights experience a 27% jump in median prices. I actually know that to be true as I had a past client who bought in the area email me with a couple real estate related question and then thank me profusely for helping find such a great deal in the Travis Heights area before it popped up again.

If you are looking at buying or selling a home in Travis Heights, or any other Austin neighborhood, I would welcome the opportunity to talk with you about it. I think it wouldn't take long until you would realize why our past clients keep referring to us and why we say West Elm Properties - just better!
Surf's Up! 2006 - Best Cities for Real Estate
8/19/200611:23:23 PM Link | | Add comment
Buyers, Home Buying, Home Selling, Local Real Estate Information, Market Statistics, National Real Estate, Real Estate, Sellers
According to Mark Nash, real estate author of 1001 Tips for Buying and Selling a Home, the 10 best cities for real estate (both for investors and home buyers) are:
- Atlanta, Georgia
- Austin, Texas
- Boise, Idaho
- Dallas, Texas
- Houston, Texas
- Las Vegas, Nevada
- Phoenix, Nevada
- San Antonio, Texas
- Seattle, Washington
- Milwaukee, Wisconsin
If you would like to read more on it and his reasonings, you can find it here

I actually believe it seems like a fairly solid list based on what I've been reading as well. I don't think it's any coincidence that the only city on a coast is Seattle. That's not a knock on those coastal cities, it's just that after the run-up those cities have experienced over the past few years its only natural to expect a leveling off and cooling period.

Also not surprising is that Texas landed 4 cities on that list and that Austin is one of those cities. Being an expert in Austin real estate and the Austin real estate cycle, I did expect Austin to make the list. While Austin's cycle does run independent from the rest of Texas, as has been shown over the past few years (and particularly evident during Austin's 'down' cycle from 2000-2004), there still is some degree of similarity across the state as to buyer demands.

Of course, if I had to choose a city in Texas, I think Austin wins hands down, both for quality of life and appreciation potential. Austin stands unique from those cities and although growth has changed some of the city's characteristics, the desire to keep austin weird still prevails. Additionally, while the national 50 year growth trend line for real estate averages an 4.8% annual appreciation, Austin's average appreciation over the past 30 years is approximately two percent higher than that.

I fully expect for the next few years to see lists similar to this one, with the majority of the cities resting in the middle parts of the country. Eventually attention will turn away and back to the coasts, but that is the nature of any cycle, almost like a wave that runs across the country. For those ready to catch the wave, surf's up in Austin.
Grow Green - Native & Adapted Landscape Plants
8/14/200610:06:12 PM Link | | Add comment
Around Austin, Buyers, Home Ideas, Landscaping, Sellers, Uniquely Austin
If you ever tried to grow plants in Texas, you know it can be a challenge to get a colorful yet hardy group going without some background knowledge. One of the best places to start is the Grow Green book called "Native and Adapted Landscape Plants: an earthwise guide for Central Texas". This fantastic reference guide is available for free within the City of Austin and should have a maximum price of $1 outside of Austin.

Quoting the Grow Green website, "Grow Green is a comprehensive landscaping program that provides Austin area homeowners with earth-wise solutions to their yard care problems. It offers more than 20 fact sheets on general landscaping tips, native and adapted plants, and pest and disease problems. Fact sheets can be found on this site or at one of more than 50 participating nurseries in or near Austin"

I highly recommend this guide for use anytime you are thinking about undertaking a gardening or landscaping project in Central Texas. I have found it invaluable with my own yard projects, and it tends to make it really look like I know what I am doing since my plants are thriving. Fortunately for me, the wonderful thing about these plants being native is that they can, almost, survive without me or, in some cases, in spite of me! Additionally, they reduce the amount of water I need to use for my yard so it really is a win-win deal.

The website for Grow Green has a searchable database, with photos, that you can access if you cannot lay your hands on the book.

Grow Green
Sunday Real Estate Links
8/13/200610:51:10 PM Link | | Add comment
Lending, Local Real Estate Information, Market Statistics, Mortgage, Real Estate
Some local Austin stories from the Sunday Stateman:

Housing Starts Stay Strong in Central Texas

Mortgage Rates Fall as Economy Slows
Austin's Persistent Real Estate Cycle - Part 1
8/13/20069:16:49 PM Link | | Add comment
Buyers, Home Buying, Home Selling, Local Real Estate Information, Market Statistics, Real Estate, Sellers
This is the first in a 3 part blog on the real estate cycle in Austin, Texas. Many people behave as if a certain economic situation will continue into perpetuity. Many times this is played out all so evidently when a bubble bursts on a particular market, whether it be the stocks in the early 2000s or the real estate bubble that is occurring on the coasts, especially notable in Miami and California. Operating from the standpoint that because something appreciated 'x' amount last year, it will do so this year, is not only foolhardy, it's just bad business. It seems so common sense to even say it, but yet time and again I see people repeat the mistakes over and over, giving into greed and trying to make a quick buck, so it bears repeating - and understanding.

It is with that goal that I undertake these writings, so that the information is out there for all who want it. For a while there I thought this was really something I could show to my clients - a unique understanding of the Austin market, where it's been, where it is now and where it is heading - and something to hold on to. In other words, something I could provide to my clients as an incentive for working with me that I feel few other agents understand.

However I've decided that particular line of thought is not the right place to be and is not where I feel good. I don't want anybody making a decision without this information if at all possible, even if they aren't working with me. I think it's important information to have for anyone who wants it and so, by writing it here, I hope it finds its way into the hands of the people who are searching for this knowledge and it allows them to make good financial decisions.

I cannot speak in depth on the cycles of the stock market, or even the real estate cycles of California, but I can offer some fairly detailed, yet pretty concise, information regarding the persistent real estate cycle of Austin, Texas. It's been my home for over 30 years and it's a place that I love and love to understand. I hope the information I share with you in this series brings you the knowledge you seek.

....................................................................................

In 1994 I was fresh out of college with my BBA in Real Estate/Finance and working for the broker, Doug Gurkin, at Keller Williams Commercial - Shopoff & Gurkin. I mostly handled much of his real estate sales/listings for many of the small multifamily properties (duplex-fourplex) that his past clients, almost all of which were investors, were 1031ing out of their inventory while he worked diligently on another company he was involved with - Asset Recovery Fund. On the side from that I did some work for the local CCIM chapter and, in particular, helped in putting together the book that was handed out to all who attended the CCIM's broker forecast.

It was while working on the CCIM's broker forecast that I ran across an article from Dr. Stephen Pyhrr entitled Austin's Persistent Real Estate cycle. If there was a more formative moment in my real estate career I'm not aware of it. I believe I have referenced the article, and the findings of his research, to almost every client I have worked with since that time.

The article was written in the early 90s and it discussed the cycles within the Austin real estate market through the ups and downs of a couple of cycles. Dr. Pyhrr then graphed out the cycle through the date of the article. What he found was that Austin has a historical "up" period of 8-10 years and a historical "down" period of 3-5 years. He then projected how the Austin market would behave through 1999 (at which time he put ???s).

How did it all turn out? I'll cover that, as well as more detail on the cycle, in Part 2.

If you would like a PDF of the article, feel free to email me at Brink@WestElmProperties.com and I would be happy to forward it on to you.
More Lanes on Mopac?
8/12/200610:33:46 PM Link | | Add comment
Around Austin, Local Real Estate Information
It looks like they are trying to squeeze two more lanes onto Mopac. The tentative solution is scheduled to be out in December.

Statesman article here...

Not only will it be interesting to see how all of this will happen, but I imagine it will also create quite the traffic snarl considering how integral Mopac is to the commute of so many.

Of course I've been in Austin for 30 years now and can still remember when 183 was a two lane road so I've seen plenty of the road building/expansion over the years. This expansion of Mopac though will be a different beast considering the limited amount of space they will have to work with to add these lanes.
Austin Market Summary for June 2006
8/11/20064:47:28 PM Link |  | Add comment
Buyers, Home Buying, Home Selling, Local Real Estate Information, Market Statistics, Real Estate, Sellers
Of note, average home sale price is up to $245,655 for June 2006, up 12% from $219,196 for June 2005.

Current Market Summary
June 2006
All Single Family Sales

2006
2005 2,980
2,462 + 21%

All Active Single Family Listings

2006
2005 8,477
8,637 -  2%

Single Family Median Price

2006
2005 $182,000
$168,500 +  8%

Single Family Pending Sales

2006
2005 3,286
2,506 + 31%
Whatever Happened to Customer Service?
8/10/20065:40:36 PM Link |  | Add comment
Customer Service, Opinion
The other night I was at a sort of a house warming party for my very best friends.  The husband was relaying a story about a recent telephone conversation that he had with a customer service rep. It seems, that store 'x' (who shall remain nameless, although it's hard to avoid them with the amount of catalogs i get in the mail from them) had overcharged my friends $11 on the shipping. When they called to have it removed they were told that the original shipping amount they were told was just an estimate. No where was that communicated, either verbally or written, at any prior time. The simple solution would have been for giant-store to just say, '"We're sorry, we'll go ahead and take that off for you". But noooooooo...my friend ends up in a protracted 20+ minute conversation with the customer service rep. During the conversation he asked to speak to her manager no less than 4 times. The final time she yelled at him, "Hold On!" He waited for about 5 minutes on hold and then she finally came back and, all huffy-like, said "we credited the $11". He said thank you and hung up.

A couple weeks passed and my friends noticed on their bill that the store had actually charged another $11 - they were down $22 now. My friend called the store's customer service line again, explained the situation, and the credit of $22 was applied - all in about 2 minutes. It's amazing to think of all the time that was wasted by the first customer 'service' rep when it was such a simple fix.

It seems like I've heard more and more of these stories in the past couple of years. On one hand I'm hoping it's not just me and my friends getting older and grumpier but on the other hand that would be a whole lot easier to correct. Unfortunately, I see it in even such simple things such as asking someone working at a store, 'how are you doing?' and getting what seems to be a fairly common refrain of 'i can't wait for this day to be over' or 'i'd be a lot better if i wasn't here'.

(As an aside, if you'd really be a lot better if you weren't there, then don't be there. Find something you would enjoy doing more!)

In the end this conversation takes me back to real estate and a recent transaction. There was a situation where the buyer of my client's home did not close the home by the contractual date. We were told it would just be another day or two so we decided to hang in there. Typically your first offer is your best and any offers after that tend to keep going down. Putting the house back on the market, given the client's situation and the stigma that's attached to homes that fall out of contract, was not in my client's best interest. Well, a couple days turned into another couple of days which turned into another couple of days. The buyer, an investor from out of state, and then lender seemed to not understand the importance of actually living up to the contract and expediting the loan so that the property could close.

One afternoon I was having a conversation with a title rep, checking in to find out the latest information. I also conveyed that this situation was very stressful for my clients and that our patience was wearing thin.

Her response to me:

"Well, tell them that's real estate"

Ugh!

What kind of answer is that? I'm supposed to go to my clients, people who I now call friends, and tell them to suck it up because 'that's real estate'.

I'm sure the title rep did not mean the statement as flippant as it sounds. But honestly, it's that thinking that drives me batty because it's pervasive within the real estate industry. The people that are supposed to be protected and shepherded the most in real estate - the consumer - seems to not be at the forefront of the thinking for so many people within this industry. So much of the drama that occurs during a real estate transaction is completely unnecessary and could be avoided. If every link in the chain of a real estate transaction just remembered who we are here to serve, and took care of their parts with that in mind (much like they would want someone taking care of their own purchase or sale), then I think consumer trust in the real estate industry would skyrocket.

It's not that hard. A little kindness. A little consideration. A good faith effort. It goes a long way.

Here's to customer service coming back strong.

Archives