Here’s why we don’t have to worry as much about appraisals in this market.

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 What happens when the home you’re buying or selling doesn’t appraise? With multiple-offer situations and homes selling far above asking price, this has come up quite a bit this year. Homes are typically currently appraising at or above asking price. That wasn’t happening a few months ago, but appraisers have adjusted expectations and pricing and are looking at more specific data.

A couple of reasons why a low appraisal isn’t as much of an issue anymore is because many home sales are in cash, and even if they aren’t in cash, people have very strong equity positions. Meaning that if someone’s offering above asking price, we’re frequently seeing down payments in the 30% to 40% range. So if the home doesn’t appraise, the buyer has the wherewithal to make up the difference between the prices.

If a low appraisal happens, there are a few options for how to proceed. First, the buyer and seller can negotiate a different price. Second, if the buyer has a clause in their contract about this, they can walk away from the deal, though we aren’t seeing much of that right now. In fact, we’re seeing the opposite; appraisal waivers are being written into contracts saying that the buyer will buy the home no matter how it appraises.

"Homes are typically currently appraising at or above asking price."

In a highly competitive real estate market, appraisals just don’t mean as much. Also, in a high equity market such as ours, homes are simply selling for what people are willing to pay for them. The usual conditions where we would see appraisals have a large impact on the ability of a home to sell just aren’t there these days. Frankly, I think our market has been undervalued for several years. 

Buyers are now coming in aggressively, making strong offers, and closing the deal. Three years ago, I would have said that about 20% of homes under contract don’t close, many for appraisal reasons, but that number is far below that today. This is a healthy sign that our market is robust. 

We’d be glad to share more information and stats if you have any questions or real estate needs. Call or email us; we’d love to help you.

Answering the question, “How is the market in Austin right now?” 

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Today I’m discussing what's currently going on in the market. Whether I’m out at the grocery store, at a party, or just talking to neighbors, the question, “How is the market in Austin right now?” comes up quite often.

It is still a very strong seller's market. There's not much inventory, but it's gone from being insane to just regular levels of crazy. Our high point lasted through March, April, and May, when every property was seeing multiple offers well over asking price. Our market increased 30% in less than a year.

All of my clients who are listing homes generally get multiple offers within a few days. Instead of getting 10 offers, they may get four or five. This will probably be the case for a while since interest rates are still so low and Austin's relocation market is as strong as ever.

If you have any questions about the Austin market or real estate in general, please feel free to reach out to me via phone or email.

I’ve had numerous questions about property taxes this year. Here are the things you need to know in Travis County.

AAn appraisal value is calculated based on the following:

Market value: This is the value based on what your property would sell for as of January of this year 

Assessed value: This is the reduced value of your property based on limitations provided by having a homestead exemption.

Taxable value: This is the assessed value minus any exemption amounts. It is the value used to calculate your property taxes for each taxing unit.

You should receive this information every spring and if you did not receive this, you can view your property’s values using the property search feature of the Travis County Appraisal District Website

If you believe the market value of your property is incorrect, you have the right to protest that value. The deadline to file your protest for the 2021 protest season is May 17, 2021. If you choose to protest the value of your property, you can initiate the protest in one of several ways:

Online

This is the easiest and fastest way to initiate and manage your protest. By filing online, you will receive an immediate confirmation that your protest has been filed. Additionally, you will be able to upload comments and evidence related to your protest, review evidence from the appraisal district, and accept/decline any settlement offer through your online account. 

Click here to file online.

By Mail

You can download this form send your protest by mail at:

Travis Central Appraisal District

PO Box 149012

Austin TX 78714

In-Person

You can stop by their office during normal business hours:

850 East Anderson Lane

Austin, TX 78752

Note: Due to Covid 19, the office is currently closed to in-person transactions. Property owners are encouraged to utilize online resources to conduct TCAD-related business.

The Informal Process

During the informal process, property owners who have protested their market value have the opportunity to receive a settlement offer from the appraisal district.

The informal process for the 2021 protest season is scheduled to begin on April 19, 2021 and end on June 18, 2021.

Click here to learn more about the informal protest process

The Appraisal Review Board (ARB) Process

The Travis Appraisal Review Board (ARB) is an independent group of citizens authorized to resolve disputes between taxpayers and the appraisal district. The ARB sits in panels of three to hear testimony and review evidence to determine property owner protests that were not resolved during the informal process.

The ARB hearing process is expected to begin in June 2021.

Click here to learn more about ARB hearings

Now that we know the process, we must remember these important dates:

April 19, 2021

Informal Process Begins

May 17, 2021

Protest Deadline

June 18, 2021

Last Day of the Informal Process

June 2021

ARB Hearings Begin

Are you under Williamson County? Click here to view their protest procedures.

We’re using CMAs to look into the future instead of the past. 

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A CMA, or comparative market analysis, is a report we use in the real estate industry to show what a home should be priced at by comparing other homes within a specific area and utilizing historical data. 

Ordinarily, we’d look at the last six months’ worth of home sales in a given area. However, in a hot market, we reduce that number to 60 to 90 days to reflect current pricing and sales. The intensity of the current market has caused us to use CMAs differently. Since we’re dealing with multiple offers and homes selling for far above their asking prices, the market has been flipped upside down in a way. 

So instead of using CMAs to look at historical data, which may be very inaccurate, we use them to determine what homes will sell for in the future. This could mean either 60 to 90 days into the future or six months down the road. Not only does this help sellers price their homes, but it also helps buyers know what the winning bid would look like. 

"The intensity of the current market has caused us to use CMAs differently."

As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

Here are a few tips to help you show your home in its best light.

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What’s the best way to show your home in a seller’s market? This question is coming up more and more because we’re starting to see sellers take shortcuts in our market during the showing process. We at the Jackson Hayes Group abide by the opposite philosophy: Although it’s a seller’s market, behave as if it’s a buyer’s market. 

One of the best things you can do is have a housekeeper come to your home either the day before or the day of its market debut. This will give it a nice, clean, crisp appearance when people are touring it. 

"Although it’s a seller’s market, behave as if it’s a buyer’s market."

We’ve also had some of our clients leave their homes for a few days while they’re on the market. This is important because your home will see the most amount of foot traffic its first few days after being listed. You can get as many as 10 to 15 showings a day, and if the home is vacant, people will be able to view it patiently and get a really good feel for it. 

Additionally, consider having an open house. It’s an open secret that Realtors often hosted open houses in the past to acquire buyer clients. In this extreme seller’s market, though, people are having a hard time getting into homes to see them, so an open house might be a good forum for two or three hours on a Saturday or Sunday. This will ensure the maximum number of qualified buyers will walk through your home. Remember, getting the maximum number of qualified buyers in your home is what will generate multiple offers and lead to your home selling above asking price. 

If you have questions about listing your home or any real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Here are a few good reasons to get a pre-inspection before you sell.

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We recommend pre-inspections to all our sellers, so today I thought it would be a good idea to review what benefits pre-inspections provide.

A pre-inspection is advantageous to sellers because it allows them to get a synopsis of any repairs that need to be addressed in their home. It also allows them to address the needed repairs on their own terms, and they can take it into account when it comes to pricing their home. Pre-inspections also give sellers confidence that their home is in good condition before they put it on the market. They make listings more attractive to buyers who might have reservations about purchasing a home that needs repairs—especially first-time buyers.

"A pre-inspection gives sellers an advantage during repair negotiations with buyers."

Finally, pre-inspections give you a chance to get estimates on the cost of repairs. That’s useful for sellers who go into negotiations with buyers over repairs; they’ll already know whether what the buyer asks for is reasonable or not because they’ve already taken the time to find out.

If you have any questions about pre-inspections or real estate in general, feel free to reach out to us. We’d love to help you.

Here are just a few of the many advantages of a VA loan.

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We have a very large veteran population in Central Texas, so let's take a quick look at the advantages of a VA home loan. The requirements for this loan are more lenient than those of conventional loans and you just need a 620 credit score to qualify. Additionally, VA loans don’t require mortgage insurance no matter what your down payment is. Finally, there is no longer a loan limit for VA loans so there is no maximum price as long as your income qualifies you.

If you have any questions about VA loans, whether you qualify for one or not, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s what happens when a home’s appraisal fails to meet its contract price.

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As you might expect, home prices are rapidly rising in this market and appraisers are having a tough time keeping up. You may have heard the phrase, “Every battle is won before it’s fought.” It’s especially true in this market because buyers and sellers should anticipate potential appraisal problems while writing the contract.

There are a few different considerations you can make when doing so. For instance, you could add an appraisal addendum. You might need to bring more cash to the table as well.

When you receive the appraisal, make sure you double-check it for accuracy in terms of typos, errors, and comparable home sales. If they aren’t using the right or the most recent comparables, have your agent check to see if there are better ones out there and they may be able to add new market comps that are a better fit for your appraisal.

"You might end up needing to bring more cash to the table."

After you’ve exhausted all these options, there are still other things you can do. For instance, you might need to renegotiate the contract or bring more cash to the table to satisfy the lender.

If you have any questions about appraisals or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

Here’s what’s happening in our market and what we expect to see this year.

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What can we expect from the local real estate market in 2021? As you know, 2020 was a volatile year due to the pandemic. However, our real estate market remained very strong. Companies such as Tesla, Apple, and Oracle are increasing their presence in Austin, thereby creating many jobs. As a result, we’re seeing an increasing number of people moving to our city. 

With that, we’re seeing more buyer demand than we’ve ever seen before, which is leading to multiple offers, cash offers, and homes selling above asking price. We believe we’ll see these trends continue through spring and summer. 

If you have any questions about the market or navigating the buying or selling processes, please feel free to reach out to us via phone or email. We would love to be your real estate resource.

  The Central Business District of Austin, Texas. Downtown is located on the north bank of the Colorado River. The approximate borders of Downtown include Lamar Boulevard to the west, Martin Luther King Jr. Boulevard and the University of Texas at Austin to the north, Interstate 35 to the east, and Lady Bird Lake to the south.

         It is where the city's high-rise buildings are located, as well as being the center of government and business for the region. Downtown Austin is currently experiencing a building boom, with many condos and high rise towers being built. The top three tallest condo buildings west of the Mississippi River are all located in downtown Austin: The Independent, The Austonian, and the 360 Condominiums.

Sold Homes In October

Sales - 15 properties sold ranging from $200,000 to $1,000,000 (October 2020 had 24 sales)

Average Days on Market - 73 days 

Average Price $729,173

Great Place to be!

Downtown Austin has so much history and so many places to visit. You can spend an afternoon of beautiful weather on the Boardwalk, Buy you stuff at the SFC Farmer's Market every Saturday, visit the Bob Bullock Museum, take a peek at the State Capitol Building, Go boating at the Kayak Town Lake, and so much more!

If you are looking for the perfect home, contact me today at 512-375-8945.