Austin Texas Real Estate Blog

I just wanted to clarify something to I get asked repeatedly about the Austin MLS Search we have on all of our web sites. The Austin MLS search tool was set up so our customers and clients can search the entire Austin MLS for every home on the Austin MLS, not just Austin Referral Realty's listings. We do not represent the sellers on every listing on our web site. Our goal is for people to easily search the Austin MLS, then contact us to discuss properties of interest and discuss free buyer's representation for purchasing a home in Austin or the surrounding areas.

It's difficult and very time consuming for an out-of-state buyer to contact 5-10 agents regarding different properties. Chances are that each property is listed by a different Realtor. Each of these Realtors offer other brokers, such as Austin Referral Realty, compensation for bringing their clients a qualified buyer who purchases the property. As a buyer, it is free to have buyer representation. If not, you will not get a discount on the property. You will have no representation and the listing broker will get paid full commission as agreed upon between seller and listing broker.

When we get phone calls from web site visitors they are often disappointed that the property is not listed by Austin Referral Realty or myself personally. There are over 7,000 homes on the Austin MLS. Please understand that it would be impossible to know everything about every home. What we do when you call or email us about a particular property, we research that property and deliver to you comparable homes on the market and similar homes that have sold to give you a better understanding of the property values in the area. Listing agents represent the seller and owe all fiduciary duties to there clients. There are some things that they may not tell you, such as their opinions. By law, they are required to treat everybody fairly and honestly and must disclose material facts relating to the property. That's about it! Be smart and get FREE buyer representation. Whether it's with us or somebody else. Don't short change yourself.

Merry Christmas!

Ronnie Bredahl
Broker/Owner
Austin Referral Realty, Inc.

The Austin real estate market certainly has been the talk around the country as far as real estate investing goes. Investors from California, Nevada, and Arizona are among the states where appreciation has been the most favorable for the pockets of real estate owners. They see their markets as overvalued and given the low capitalization rates, they are moving their money to the Austin real estate market, where as many people see it as undervalued.

As the prices went up and up on the West Coast and many parts of the nation, Austin remained flat, but stable. Now there is all this talk about a housing bubble from the massive appreciation over the last few years. I think housing bubbles develop in areas where the real estate values are so high, people stop seeing the value. Austin is the opposite. We are the third fastest growing city in the country and the influx of people moving in is creating demand. Together with the influx of investor cash and you have yourself a strong market.

Being an independent broker with 3 agents, I'm speaking now from my personal experiences during 2005. This is the first full year all my web sites are running full steam. This is the foundation of our business and accounts for the majority of our sales. We get 2 to 3 phone calls a day from investors, or wannabe investors. 85% of these calls are from the states mentioned above: California, Nevada, and Arizona. Most are looking to purchase new construction, single-family homes with good incentives. Many of the builders are offering points, sometimes up to 10, for their completed, unsold inventory homes. With the lower real estate values and buyer incentives, investors see these deals as good investments as long as the rental income can cover the mortgage payment. Most of our clients put down between 10-20%, or do 80/10/10 loans (1st Lien 80%, 2nd Lien 10%, 10% down payment). This helps them avoid PMI (Private Mortgage Insurance) which saves them roughly $80-100 per month. These deals not only offer them a small cash flow every month, it allows them the write off of the expenses which come along with owning investment real estate including property depreciation.

We work with several California real estate investment groups and several in both Nevada and Arizona. This keeps us busy finding new homes that investments are willing to sell to investors. Early in 2005, many of the local Austin builders stopped selling to investors due to the fact the neighborhoods were filling up with rental property. Most new subdivisions belong to HOA's (Home Owner Associations) and many of the HOA's felt the builders were selling them out. Usually, a builder will sell up to 10% of the homes to investors. That's the cap most of them use. When we get a phone call from a investor, we listen to their investment goals and start making phone calls to locate a suitable property for their investment goals. When we locate a property, we preview the home and take about 25 pictures (depending on what kind of property) and email our analysis on the investment. It's a streamlined process that makes our investor clients feel secure with their investment prior to even visiting the property. Believe it or not, many of our clients have never been to Austin nor do they see the property they are buying. These deals must be working out for them b/c they continue to buy more and more new homes. Many buy multiple properties at the same time. If you or someone you know is in a similar situation, feel free to give me a call to discuss. You may reach me anytime at (512) 785-9050.

Now for the latest Austin real estate market stats (updated stats for Novemebr 2005 should be available shortly):

Have a Merry CHRISTMAS and a Happy New Year!

by Ronnie Bredahl, Broker/Owner of Austin Referral Realty, Inc.

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