Happy 4th of July weekend! Need some fun and exciting ideas to celebrate this year in the ATX? We've rounded up a view great options to check out if you don't already have plans for this holiday weekend.

Live Fireworks and a Movie at Doc’s Drive in Theater:
With FIREWORKS before the movie, live music, as well as a wide variety of food and drinks, Doc's Drive in is a great option for anyone looking to have a good time!  They will have two simultaneous showings on both the 3rd and the 4th.  You can catch The Sandlot on Screen 1 or Independence Day on Screen 2. 

July 3rd and 4th
Live Music 7-9PM
Live Fireworks Show 9pm
Movies 9:30pm


1540 Satterwhite Road
Buda, TX 78610

Get more information and buy your tickets HERE

4th of July Blues, Brews, & BBQ with The Larry Harris Band:
No cover, all ages are welcome, and dog friendly.  Celebrate the 4th of July with live music, BBQ food, and some refreshing draft beers at Oakwood BBQ & Beer Garden.

July 4th from 11AM-8PM

307 E. Braker Lane
Austin, TX 78753
​
Get more information HERE.

HEB Austin Symphony July 4th Concert and Fireworks:
Enjoy spectacular fireworks and some live music from the Austin Symphony at this free event.

Sunday, July 4th at 8:00 pm

900 W Riverside Drive
Austin, TX 78704

More information HERE.

​Red, White, and Boom 4th of July Festival:
​Visit Typhoon Texas for wild water rides, live music, contests, fireworks, and a hot air balloon ride.

July 2nd, 3rd and 4th 10:30 am - 7:00 pm
​
18500 Texas 130 Service Road
Pflugerville, TX 78660
​
Purchase tickets HERE.

​The greater Austin area continues to break records in the month of May. Austin saw an all time high for median home prices for any month on record. The recorded median single family home value for the entire greater Austin area last month topped the charts at a whopping $465,000.

We are at a challenging time currently. There is simply not enough land in Austin to meet buyer demand. As businesses come in, so do residents and this is causing single family home prices to sky rocket. Austin is now experiencing a critical shortage of inventory and we must think about new ways to expand and creative policies to increase our housing supply over the long run.

​Residential home sales in the Austin Round-Rock MSA aka the entire greater Austin area have seen an increase of 48% year over year to 3,976 sales for the month of May. As you may imagine, the median sales price also jumped 42.2% year over year. That is a full $100k higher than in January of this year. Monthly housing inventory decreased 1.5 months to 0.5 months of inventory. This is critically low; a balanced market has 6 months of inventory.

In May, active listings dropped 70.9% year over year to 1,739 listings, this shows how quickly homes are going under contract. Homes spent an average of 16 days on market last month across the MSA. However, keep in mind this is an average. A lot of homes spent far fewer days on market. 
​
Increases in Median Home Sales Price per County:
City of Austin - 34.9% year over year to $566,500
Travis County - 41% year over year to $550,000
Williamson County - 50% year over year to $435,000
Hays County - 42.5% year over year to $380,000
Bastrop County - 24% year over year to $321,250
Caldwell County - 26.9% year over year to $239,900

Curious to know what’s happening in your zip code? Contact me for more information!

With summer approaching, who wouldn't want to be out there by the water and enjoying life? Texas summers are no joke! Maybe you want to get out in the kayak, go paddle boarding, or take the boat out for a spin. Those all sound like a perfect summer day to me. however, it can be somewhat tricky finding a spot to get that boat unloaded and into the water. 

​I've mapped out some public boat ramps and a few homes for sale near the lakes. Let us know how we can help you find your perfect property to get you out there and living your best life.

If you’ve been keeping an eye on the Austin real estate market lately, you’ve surely heard that the ATX has become one of, if not the most, competitive markets for home buyers in 2021.  You’ve probably heard about homes flying off the market at record speeds, selling for hundred of thousands of dollars over asking price, and new builders only being able to sign 1 or 2 contracts a month for homes that won’t even be completed until 2022.  However, something you may not have heard about yet is the subtle shift in the Austin real estate market over the past two weeks.  I’ve seen homes sell for asking price, homes that only had a few offers, and the return of due diligence periods.

This shift is subtle, and if you are not actively working in it everyday, you may not even notice it. But I feel it, and if it continues, it will have implications. You may be wondering why this may be.  All of the signs point towards continued demand and thus higher prices. And, that is still true, but the market is behaving slightly differently. I hypothesize this subtle shift is due to a few different variables.

Many individuals looking to purchase in the Austin market are quite simply beginning to feel defeated.  I have a few buyers who have been trying to buy a home for the past few months, and are still empty handed.  They’ve offered well over asking price, waived their appraisal contingencies, and offered 5 digit earnest money deposits yet they still haven’t been able to get an accepted contract.  After the 4th or 5th time of this, some buyers begin to feel like they simply cannot win in this ultra-competitive market.  Some of these buyers decide to stop trying altogether, or opt to purchase in another city altogether.  Others are still observing from afar, but are less motivated to make offers on available homes.

In order to determine an appropriate asking price for a home, you need to look at the sold prices for comparable homes.  Since the home sale cycle from list date to close date is usually around 30 days, sold stats are constantly lagging behind the market.  Over the past few months, most homes have been appropriately listed at prices determined by the sold comparable homes.  However, the majority of those homes went under-contract at a price far higher than the asking price.  We are now beginning to see those homes close, and new listings are being priced using those sold stats.

​For single-family homes listed in the Austin MLS, the median list price/sqft increased from $197/sqft in February to $213/sqft in March. As listing prices are increasing, I foresee this leveling out the difference between asking price and contract price.  This is not to say that the majority of homes will not continue to sell for above asking price.  I think that trend will continue, but I think we will see the difference between asking price and sold price decrease. Earlier this year we saw some homes selling for hundred of thousands of dollars over asking price; I foresee the ratio of list price to close price decreasing in the coming months.

The February storms caused a serious strain on an already tight supply of inventory in the Austin market.  Some homeowners that planned to list in February were forced to wait to list due to unexpected repairs as a result of storm damage.  Others simply decided to wait to list, since the city was essentially shut own for an entire week.  In February, we had 2,360 new single-family residential home listings in the Austin MLS.  In March, we had 3,745 new single-family homes hit the market. Historically, we see the largest inventory increases in the Austin real estate market between March through July.  So far, the number of new listings in 2021 has been lower than what we saw last year (even with the pandemic). However, it looks like the  trend for increased listings in the spring to summer months will continue for 2021.

This subtle shift should benefit those looking to purchase in the Austin market.  Home prices likely will continue to be the highest they have ever been, BUT as sold comps catch up to the true market it will be easier for buyers to purchase homes.  Appraisal waivers (essentially agreeing to purchase the home no matter what it appraises for and agreeing to bring the difference between the appraised value and the offer price in cash to closing) were almost mandatory over the past few months.  This made it nearly impossible for someone without a ton of extra liquidity to compete in multiple offer situations.  It was particularly detrimental to those buyers looking to purchase a home using a VA or FHA loan as these loan programs expressly prohibit the use of the Appraisal Waiver Addendum.  Now that we are beginning to see the new market sales data, homes are more likely to appraise at or closer to offer prices.  This has huge implications for any buyer using a loan to purchase a home.

For someone considering selling their home in Austin in the near future, you can still expect your home to sell for top dollar.  In fact, you will likely get more for your home in the coming months than if you had listed your home for sale in the first quarter of 2021.  However, you may not get all of the other offer terms that many home sellers received earlier this year.  We saw home sellers receiving offers where the buyer incentivized the seller with a complimentary lease back.  Sometimes, the buyer offered for the seller to stay in their home for an entire year for free after the buyers purchased the home.  These will likely become more conservative or dissipate entirely.  You also may see the re-emergence of typical seller expenses such as the title policy, and buyers may begin requesting a seller paid for home warranty again.  All in all, these nominal expenses will not adversely affect your bottom line. You can expect to still sell your home for the highest price, but you may arrive there with fewer offers and more buyer preference in regards to offer terms.

If you have questions about the Austin real estate market, or need advice when contemplating your next move, contact me.

One great aspect of Austin is that it is home to two lakes.  Lake Travis and Lake Austin are both technically dammed portions of the Colorado River.  Lake Austin is a narrower meandering constant-level lake while Lake Travis is much larger and deeper, but it is subject to varying lake levels.  Both lakes offer ample opportunities for recreation.  If you are ready to enjoy the lake life in Austin, but not quite ready to plunge into buying a waterfront property, you may want to consider one of these communities which offer boat ramp access to residents. Purchasing a property in a community with lake access guarantees that you will be able to get out on the water with ease, and avoid the crowds at the public boat launches.  There are numerous great communities in Austin which offer residents access to Lake Travis or Lake Austin.  Here are some Austin communities with lake access you may want to consider.

Apache Shores

Apache Shores is located off RR 620 in the acclaimed Lake Travis Independent School District.  The community offers a diverse array of property types, and residents enjoy access to a number of amenities including a community boat launch.  There are also several boat docks available for day use as well as a large area with picnic tables and grills where you can relax after a long day on the lake.   Other community amenities include a pool, tennis and basketball courts, children’s park with a playscape, and a disc-golf course.

Cuernavaca

Cuernavaca is located off Bee Cave Road between 360 and 71 in the exemplary Eanes ISD. Cuernavaca has a voluntary HOA.  Membership in Cuernavaca’s Lake Hills Community Association grants members access to the community pool, private boat launch and a waterfront park.

Lake Pointe

Lake Point is located 12 miles from downtown Austin off Bee Cave Rd in Lake Travis ISD. Residents of Lake Pointe enjoy access to a waterfront park and day docks. Unfortunately, there are no motorized boat launches in Lake Pointe.  Community amenities include pools, golf courses, and trails. Also enjoyable is the short journey to the Hill Country Galleria and all of the retail opportunities that entails. 

Greenshores

Greenshores is located in the Austin ISD. Locals enjoy access to a private park on Lake Austin with a boat ramp.

Rough Hollow

Rough Hollow is located off 71 just west of Lakeway. Residents have access to an array of amenities, including the Yacht Club & Marina which offers complimentary paddleboards and kayaks, a fitness center, a water themed village, and 22 miles of hike and bike trails.

Tessera On Lake Travis

Tessera On Lake Travis is located in Lago Vista in the Lago Vista ISD. Amenities include a private boat launch, gorgeous pool, exquisite hiking and bike trails, and over a mile of shoreline.

Lago Vista POA

Lago Vista is located on the Northshore of Lake Travis. Residents enjoy access to boat ramps, lakefront parks, golfing, tennis courts and more all nearby.  Residents also enjoy community exercise facilities, pickel ball courts, a small airport & much more.

Lakeshore Ranch

Lakeshore Ranch is located in the Lago Vista ISD, sitting on the Lake Travis shoreline. Lakeshore Ranch has a private HOA waterfront park with a boat ramp. Residents enjoy easy access to the Balcones Canyonlands National Wildlife Refuge, prime shopping, nearby trails, zip-lining, and fantastic restaurants.

Laguna Vista

Located in the town of Spicewood, homes in Laguna Vista also feed to Lake Travis ISD. Residents love the private community boat ramp, swimming, fishing, and living an outdoors life.

Paleface Ranch

Paleface Ranch is located west on Highway 71 in the Lake Travis ISD. Residents enjoy access to a community boat launch.  This neighborhood is located on the Pedernales River arm of Lake Travis so it may go dry when we are experiencing extreme droughts.

Bee Creek Estates

Bee Creek Estates is located off of Highway 71 in the Lake Travis ISD. Only a short drive from the Hill Country Galleria. Locals enjoy the private park with a boat ramp for lake activities and nearby golf courses, and wineries.

Naumanns Camp

Naumanns Camp is a small community located in Spicewood, on the northern side of the Pedernales River. Lot sizes ranging from 0.5-5 acres. Naumanns Camps feeds to Marble Falls ISD. 

Paleface Homesteads

Paleface Homesteads is located just north of Pedernales River in the Marble Falls ISD. Locals enjoy golfing at Pedernales Golf Club, owned by Willie Nelson. You can also find comfort at Spicewoods Vineyards and Gaucho Winery.

It’s been over a year since our beautiful world shut down. We said goodbye to large weddings, parties, the nightlife, concerts, theaters, and so much more. Who’s ready to have fun again? I know I am! Let's take a look at some fun activities in Austin, TX to make you feel like you're living your best life again.

The Barton Creek Greenbelt is located in South Austin and stretches over 12 miles of land. The Barton Creek Greenbelt is known for its beautiful hiking trails, swimming spots, biking, rock climbing, and is an overall great way to spend a day in the outdoors. Read my full Insider's Guide to the Greenbelt here.

This interactive museum gives you a fun way to enjoy numerous exquisite works of art! Snap countless photos and make sure you post them on Instagram for all of your friends to see. This is a museum for all ages to enjoy. Bring your kids, bring a date, bring Bob from 2 houses down. You will enjoy the day and see many pieces that will open your mind to exploring places you never thought possible. Learn more here.

Feel like dipping your feet in the water? Head over to Rowing Dock where you can select from kayaks, canoes, and paddleboards to experience Ladybird Lake like a true Austinite. Located at 2418 Stratford Dr, Austin, TX 78746, the Rowing Dock is open daily from 9AM-8PM. What are you waiting for? Bring your friends, come alone, or load up the family and head over now! Learn more here. ​

Enjoy the fun boutiques, eat at some delicious restaurants, view the street art, and enjoy what only Austin can bring you. Try on some crazy costumes at Lucy In Disguise With Diamonds, Have a yummy cone at Amy’s Ice Cream, stop in at Hotel San Jose for some amazing frosé, and don’t forget to snap a pic at the famous “I love you so much” mural at Jo’s Coffee.  There's also an entire new section known as Music Lane which has some great restaurants and new shops to explore too!

If you’re trying to purchase a home in the Austin area right now, you know it’s nuts out there.  It makes finding toilet paper in April of 2020 look like a piece of cake.  Securing that coveted PS5 last month - a walk in the park compared to buying an Austin home.  Needless to say, it’s a challenge.  I like challenges and if you do too, keep reading to learn how you can buy a home in Austin right now.

Appease The Sellers
Sellers in Austin obviously have the upper hand right now, so you need to do everything you can to make sure they like you and your offer.  Find out what makes them tick, what terms they will find most favorable, and how you can win them over.  This may involve some deep cyber stalking.  After you learn that seller Mary has been pinning recipes for banana bread you could deliver your offer with a loaf of MeMa’s famous bread and  even include her secret recipe.  Or, you may just be able to ask what the seller's plan is in order to craft an offer that is most appealing to their needs and timeline. If the home is vacant, they probably want to close as soon as possible.  However, if the sellers still live in their home, they may favor a closing date that is farther out or a lease back for a few months so they have enough time to find a new home. Sellers know that the market is in their favor right now, so many have already outlined the terms they find most favorable before their home even hits the MLS.  Make sure to inquire as to what these are so that you can draft an offer to match.


Pay Cash
Cash offers always rank favorably among home sellers.  When a purchaser is paying cash they can close quickly and there’s no potential for a contract falling apart due to issues with funding.  In today’s omnipresent multiple offer situations, cash offers are becoming quite popular.  If you can pay cash for a home, offer cash!  You can always finance after you purchase the home.  Don’t have a few hundred grand under your mattress?  Just sell your first born child.  Rob a bank or perhaps it’s time you start trying your luck with the Powerball. I hear there’s a jackpot of $970 million up for grabs tomorrow night.  With that kind of payout you may be able to secure more than one house in the Austin market! 

All jokes aside, there are ways you can leverage yourself to place an all cash offer on a home.  You may be able to get a secured loan that uses your investments in stocks as collateral or perhaps you have a wealthy relative that will make you a personal loan.  If you need to sell your current home before you can buy a new one, there are various companies such as homeward who will put a cash offer on your new home for you.  They then lease your new home back to you until you sell your old home. Once your old home sells, you can get a traditional mortgage to buy the home back from them at the same price they paid for it in cash.  Of course, they do charge a fee for this service. Ultimately, mortgage rates are at an all time low, but everyone knows it.  If you can find a way to offer cash up-front, you will have the upper hand.




Waive Your Appraisal
If you didn’t win the lottery or scourge up enough capital to be able to offer cash for your dream home, you best consider waiving that appraisal to some extent.  Austin homes are selling so quickly right now, they are outpacing the market data.  People are paying more for homes than they are worth based on the published comparable home sales data.  This means your home may not appraise at the purchase price. 

Without an appraisal waiver addendum, the sale of the home is contingent upon the home appraising at the contract price.  For sellers, this is a risk that the sale may not close.  By adding the appraisal waiver addendum you are increasing the likelihood of your offer being accepted.  But, if you couldn’t afford to pay cash for the house, you probably don’t want to waive the appraisal entirely.  You may be able to do a partial waiver in that case.  In this scenario, you would be agreeing up front that if the home appraises for less than the contract price you would be willing to bring additional cash to the table to make up the difference.  And, you are capping the amount of cash you would bring making this a partial waiver.

Let’s say you put in an offer on a home for $500,000, and you are planning to put 20% down ($100,000).  You do have $200,000 in cash.  If the home appraised for $400,000 and the lender required you to put 20% down they would only loan you $320,000.  Technically, you could still afford to make up the difference.  So you may want to do a partial waiver of your appraisal contingency.  This ensures that if the home appraises for less than $400k you don’t have to move forward with the offer and your earnest money will be returned, but if the home appraises for between $400-$500k you will still be on the hook to comply with the contract and purchase the home.  You should definitely consult with your mortgage lender before agreeing to waive your appraisal contingency.


Forget about an Option Period
When you put in an offer on a home in Austin you usually pay a few hundred dollars to the seller for an option period.  The amount of option money you pay and the length of the option period are both negotiable.  The option period allows you the time to do all necessary inspections and you can back out for any reason during the option period and get your earnest money back.  I used to say the typical amount for an option period is a few hundred dollars for a week long option period.  Today, that’s not going to cut it. 

Many buyers are foregoing their option period all together or offering thousands of dollars for a very short (1-2 day) option period.  While I wouldn’t necessarily recommend giving up the opportunity for an option period all together, you may want to modify how you approach the option period.  Make it as short as possible.  If you can get in an inspector within 24 hours, you do not need a 7 day option period.  If you are fairly confident there aren’t major issues with the home that would be deal-killers you may want to increase the amount for the option money.  At the end of the day, option money is money that you may lose if you don’t go through with the deal.  It’s kind of like gambling- only put in as much as you are comfortable possibly losing.


Pay for Everything
In normal times, the seller typically pays for the owner’s title policy in Texas.  These are not normal times.  Offer to pay for the title policy.  If you need a new survey, pay for that too.  A designer handbag for the seller- it could work.  Were you thinking of asking for the seller to contribute towards your closing costs?  Good luck with that. Perhaps you assumed getting the sellers to pay for a home warranty was standard practice- not anymore.  These days, the buyer who pays for negotiable items is often the buyer who wins in a multiple-offer situation.

​All in all, don’t lose hope if you want to buy a home in Austin in the near future.  While this slightly satirical commentary on the state of the current Austin market has many truths there are still ways to buy a home in Austin without throwing your entire life’s savings into it. Take a look at my other post, How to Win in a Multiple Offer Situation for less risky tips for crafting an appealing offer. 

Pay close attention to homes that have been on the market for a few weeks that others may have overlooked.  You may not be able to buy your dream home right now, but that doesn’t mean you can’t make a home your dream home. Homes that look beautiful and show wonderfully will go quickly and with many of the terms outlined above.  Some home sellers mistakenly choose a poor listing agent who decides to market their home with inferior quality cell phone photos that make me cringe.  This does not mean the home doesn’t look great in person.

Buying a home in Austin right now can be a challenge, but I know you are up for it!  If you want help navigating this insane Austin market, contact me today.

A number of factors have contributed to the omni-present buyer demand in the Austin real estate market.  Buyers are taking advantage of record low interest rates.  People are looking for more space as the reality of working from home indefinitely sets in, and large corporations are moving here in droves.  All of these factors have resulted in a shockingly low level of homes for sale in Austin.  In December of 2019, there were 1,285 active single family home listings in Austin.  In December of 2020, there were only 521.  As with any case of supply and demand, this is driving prices through the roof.  Multiple offer situations that push the sales price well above the asking price are common occurrences at almost every price point in the Austin market.  If you are submitting an offer to purchase a home right now, it’s not unusual to provide an appraisal waiver addendum that declares you are willing to bring additional cash to the table if the home does not appraise. ​

What does this mean for you?

If you are considering buying a property in Austin right now, understand that the market is incredibly competitive.  You may not be able to get your dream home, or you may have to place offers on multiple properties before finally going under-contract on one.  There should be an increase in listings this spring that will alleviate the market to some extent, but I would also expect prices to rise throughout the typical spring selling season.  The bottom line is that if you are prepared to deal with the harsh conditions that the Austin market presents right now, you are likely better off buying now than waiting.

If you are thinking about selling your home, there has never been a better time.  You can expect to sell your home quickly and for an unprecedented price.  That being said, if you hold off until the spring, you may make a bit more.  Ultimately, it’s up to your unique situation to determine if now is the best time to sell for you.

If you have specific questions about what’s happening in the Austin market and your best course of action, feel free to contact me anytime!

Selling an investment property is quite different than selling your primary residence. When you are considering selling a property that is tenant-occupied you will need to think about how the tenants may impact the sale of the home. The lease terms and your selling timeline will dictate how you can sell the home.  You could sell the home with leases in place or wait for the leases to terminate before listing the property.  If you wait for the leases to terminate you will appeal to a larger buyer pool, and the selling process can be facilitated more easily.  That being said, there are benefits to selling an investment property with tenants in place ( hello instant rental revenue!) If you determine that selling with tenants in place is the best option for you, following the advice below will help you sell your rental property with relative ease.

When you’re considering selling your rental property, the first step is to locate your lease or leases if you have multiple tenants.  Look at when the lease term ends and the monthly rent.  Does the lease terminate at a time of year that is favorable for selling for the highest dollar?  Does the monthly rent match the market rate?  If you’re not sure, you should contact a real estate professional to find out!  If your rental revenue is below market rate, and the tenants have a considerable amount of time left on the lease it may be better to wait until closer to the lease termination date to sell.

Next, you will want to look at the fine print in the lease that dictates how the property can be marketed. Identify what rights you as a landlord have to market and show the property.  Some leases will allow for showings within a certain amount of days prior to the lease ending.  Other leases may state that the tenant can pay a fee to waive the landlord’s right to allow showings during that time period.  If you determine that listing your home for sale with tenants in place is the best strategy, you MUST adhere to the showing terms dictated by the lease.  Furthermore, you will want the tenants to be cooperative in the process.

Communicate your intentions to sell early on; you will want to ensure they understand that the lease terms will stay the same when the property is sold.  The only difference will be the landlord is changing hands.  At closing, the security deposit will be transferred to the new owner, and the new owner will deliver instructions for paying rent to the tenants.   You also need to make sure to have a plan for how showings will be allowed and how much notice the tenants need prior to showings. Will you communicate showing requests by a text or phone call?  Do you need to inform all tenants or is their one point person with whom you can communicate? Are there certain times or days that will never work for showings?  How much notice does the tenant need to allow a showing?

In addition to clearly communicating showing notice protocols, it’s also important to set expectations for how you would like the home to be presented fo showings (free of clutter, clean counters, beds made, etc). Ultimately, you can’t force the tenant to ensure your property appeals to buyers.  However, you may be able to incentivize tenants with a discount on rent, a gift or you could offer a free home cleaning prior to an open house.  In the end, this small expense is well worth it to ensure the home shows well and thus yields a higher sales price.

Selling your rental property with tenants in place means you are selling your property to an investor!  Investors have one primary goal - to purchase a property that will provide a return on investment.  In order to determine how profitable the property may be, investors will want to know all the figures.  Make sure that the monthly rents are marketed.  If you have detailed records of expenses and improvements to the property you should provide these.  If you installed a new roof last year, or your property has a 10% cap rate, these are facts the investor will want to know! Make it as easy as possible for an investor to see the financial benefits of your property.

Do you have questions about selling your Austin area rental property?  Give me a call, and I’ll be able to help you determine the best strategy for your unique situation.

One great benefit veterans who have previously served or are currently serving our country are eligible for is the Veterans Administration home loan aka a VA loan.  The VA loan allows for a zero down home loan for qualified veterans.  However, just because you served the country does not automatically qualify you for a home loan.  Although the VA does not have specific credit requirements for buyers looking to utilize the VA loan, private lenders facilitating these loans often do.  In addition, you will also have to show that you have the financial means to pay the mortgage and home insurance moving forward.  That being said, if you have a decent credit score and a debt to income ratio of 41% or less, you will likely be able to qualify for a VA home loan.

​If you would like to purchase a condo in Austin using a VA loan, you will need to make sure the condo complex is on the VA’s approved condo list.  For a condo to be approved it must meet the following criteria:

• The complex must be at least 50% owner occupied
• No one person or entity can own more than 10% of the units
• At least 85% of owners must be current on HOA dues
• There must be more than one unit

Just because a property meets the criteria above does not automatically mean it is eligible for a VA loan.  A condo must be listed on the VA’s approved condo list.  You can view and search for VA approved Austin condo buildings on the VA’s website.

Whether you are buying a new construction home, a condo or an existing home with a VA loan you will need to make sure the property meets the VA’s minimum property requirements.  These requirements are designed to protect the veteran from safety related issues as well as future economic burdens.  Here are some of the minimum property requirements to look out for while shopping for an Austin home:

1. Property Access - The home can not be land-locked.  You must be able to access the home from a public or private street.  An access easement is permitted as long as it is properly recorded.
2. Use - The VA loan is primarily a home loan.  Thus, it must be used to purchase property that is primarily residential in nature.  If a portion of the property is non-residential it may still qualify to be purchased with a VA loan so long as that portion is less than 25% of the gross floor square footage.
3. Habitable - A home must be habitable and have a bathroom, space for sleeping, and space for cooking.  Although there are not specifications for specific appliances, a home without an oven would be a red flag for potential funding problems down the line.
4. Utilities - The home must have independent utilities or have the permanent legal right to the utilities.  There is a preference for public utilities; however having a well or a septic system is generally ok so long as it is performing adequately.
5. Reasonable Future Utility - The VA guidelines often use the term of reasonable future utility for a number of different systems and structures within a home.  The idea here is that the major mechanical systems such as plumbing, electrical, HVAC will continue to operate for the foreseeable future. The roof must have at least 5 years life left.
6. Defective Conditions - A variety of defective conditions would need to be corrected in order to purchase a home with a VA loan.  These conditions can be rectified at the expense of the buyer or seller but they must be addressed prior to closing if they are identified by the appraiser/the inspector.  Defective conditions could be related to site conditions or construction defects.  In Texas, a wood destroying insect inspection must be performed by buyers using the VA loan. Signs of termite activity would e a defective condition that would need to be cured prior to closing.  Other common defects include rotting wood, broken windows, improper drainage, or broken windows.  Peeling paint in homes built prior to 1978 is automatically considered a defective condition by the VA.

This list is by no means exhaustive, but if you are looking to purchase a home in Austin using a VA loan, it should give you a basic idea of what to look out for when considering your options.  If you want to utilize your VA loan to purchase an Austin home, I’d be happy to help you navigate the process.  Contact me today so we can start working to find the perfect home to meet your needs.