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.

​An accessory dwelling unit, aka an ADU, may be the perfect solution to all of your 2020 problems.  The idea of a back house is nothing new to the Austin real estate market.  They’ve been becoming more and more popular over the past decade as property values have increased throughout central Texas.  They are great for buy and hold investors looking to capitalize on their investment by creating more opportunities for rental revenue. Similarly, more and more developers are building two units on one lot and then selling both units separately as detached condos.  However, this year, more than ever, the benefits of an ADU as more than just an investment strategy are clearer than ever before.

Our houses have become places for much more than resting our heads at night and gathering for family dinners.  Our homes now are someplace we spend the majority of our time.  We work from home, workout from home and so much more.  With all of the time you are now spending at home, you may have started to feel a bit confined by the four walls and space available.  If you’re feeling a bit claustrophobic in your current home, an ADU could help. This accessory dwelling unit could be used as a home office, a class room, a home gym and so much more.


If you’re thinking about building an ADU on your property, you will first want to do your due diligence on if your zoning allows for a secondary dwelling unit.  The rules will vary from one municipality to the next.  In the City of Austin, they have very clear rules on building an accessory dwelling unit.  The rules are based on lot size ( in order to build an ADU you must have a lot size of at least 5,750 sqft ), the property’s zoning, and impervious cover requirements.  You can view the complete requirements in the City of Austin’s Land Development Code.


If you determine that you can physically build an accessory dwelling unit on your property, the next step would be to speak to a builder to determine what the costs would be.  At this point, it would also be wise to speak with a trusted real estate professional to see if the costs to build an ADU would be recouped when you eventually sell your home. You may determine that building an ADU is not the best economic move, or that the construction timeline is too long to stay sane while doing everything in your current home.


If you still have your dreams set on the idea of a secondary dwelling unit, you could purchase a new home with an existing ADU on the property.  There are some properties with secondary dwelling units for sale in the Austin market.  There are also other properties, that have a secondary structure that could be remodeled to serve your unique needs.

​If you’re looking for a home with an accessory dwelling unit in Austin or have questions about building an ADU at your Austin home, feel free to contact me today.

The title policy protects against any unknown claims of ownership to the property. The cost of the title policy is negotiable in the Texas real estate purchase contract.  However, it is very common for the seller to pay the cost of the owner’s title policy in the Austin real estate market.  Occasionally, in competitive multiple offer situations, you will see the buyer offer to pay the owner’s title policy.  This is vary rare, and not something to count on when estimating the fees associated with selling your Austin home.  The owner’s title policy cost is regulated in the state of Texas.  No matter what title company you use, you will pay the same amount for the owner’s title policy.  These rates are based on the sales price of your home.  You can view the full rate chart here.  As an example on a $400,000 home sale you can expect to pay $2,413 for the owner’s title policy in Texas.  If the person purchasing your home is financing the home purchase a lender’s title policy will also be required.  This is typically a buyer expense. ​

There’s no point in looking for homes until you know what you can afford.  One of the biggest mistakes a home buyer can make is looking at homes before you have spoken with a lender.  After all, how do you even know if you can afford to buy a home or what your budget for a home is.  Unless you are paying cash, your first step in the home buying journey should always be to speak with a mortgage professional.  Another common pitfall many prospective home buyers make is to only speak with one home lender.  Do yourself a favor and don’t fall victim to this common mishap.  When you speak with a number of different lenders, you increase your odds of finding the best rate and the best personality fit.  If you need recommendations for Austin lenders, I’m happy to provide recommendations.  Just make sure to compare lenders within a two week time period so that your credit only received one hard inquiry.

Before you begin your Austin home search, think carefully about what you must have and what you want it a new home.  Make sure to bring in anyone else who will have a say in the home purchase, and compare your lists.  Once you are on the same page, it’s important to take a good long look at your list and really narrow down those must-have features.  A common mistake I see among Austin home buyers is that they are looking for the perfect house.  The perfect house may not exist!  Although buying a home is often an emotional decision, it’s also a financial one and you may need to be flexible in your criteria.

Although most Austin area home buyers I work with often have an idea of the location they would like to live in, they sometimes fail to recognize the importance of location over property attributes.  Time and time again, I find myself re-iterating that you can change the carpet, you can paint the walls, you can add a double oven BUT you can’t change the home’s location or lot size.  Think carefully about the neighborhood, the school district and the attributes of the lot itself. 


Have questions about buying a home in the Austin Area?  Contact me today.

If you look at the median sales price per square foot, the 78701 zip code had the highest appreciation rate among central Austin zip codes.  78701 had an appreciation rate of 13.84% with the median sales price per square foot in 2020 at $658.  This data was pulled from approximately 160 sales in 2020 compared to around 300 sales in 2019.  It will be interesting to review these stats once a full year of data for 2020 is available. However, this downtown zip code has a strong track record of appreciation with an increase of about 10% for the median sales price per square foot between 2018 to 2019.​

The 78742 zip code showed the lowest level of appreciation in the Austin area.  In fact, it was the only zip code I analyzed that actually depreciated between 2019 to 2020.  In 2020, the median sales price per square foot was $228 compared to $248 in 2019.  However, there were only two sales in 2020 and five in 2019, and thus this data set is too small to draw meaningful conclusions.

Although, I think the results are less significant, I also analyzed the appreciation rate among the same Austin area zip codes based on the median sales price.  Based on this methodology, the zip code in Austin with the highest appreciation rate between 2019 to 2020 is 78746.  Homes in 78746 appreciated 19.76% between 2019 to 2020.  This data was pulled from 426 sales in 2019 and 232 sales in 2020.  The 78742 zip code similarly showed the lowest level of depreciation when analyzing the change based on the median sales price; however, as previously mentioned, the limited number of total sales in this zip code obscures the validity of this figure.

All in all, it is important to assess appreciation rates in the Austin real estate market.  When you own a home and its value appreciates over time, you make money when you sell!  And, when you leverage your home purchase with a mortgage, that appreciation benefit is compounded based on the fact that you’re profiting off the appreciation value of the entire home, when only paying a portion of the home’s value in your down payment.  For example, if you bought a home for $300,000 and put 20% down ($60,000) and that home appreciated 10% you would make a $30,000 gain on a $60,000 investment. It’s a bit more complicated when you throw mortgage payments into the mix, but you can easily see why understanding a given area’s appreciation rate is important.  That being said, make sure to take a comprehensive look at the data and recognize its potential limitations when evaluating a market based on the appreciation rate. ​

If you have questions about the appreciation rate in your Austin neighborhood, contact me today.  I’d be happy to do the research and provide you with the data you need to make an informed decision.

After a lull in real estate sales during the typically peak spring selling season, the Austin real estate market is showing a rebound in full force this summer.


In the City of Austin, the median sales price rose to $423,000; this figure is up 11% compared to last July.  The total number of home sales within the city limits also increased 21% from July 2019.  There were 1,470 closed residential home sales in the City of Austin last month. Inventory remains critically low, and we are seeing homes spend less time on the market too.  Within the city limits, homes spent an average of 29 days on the market in July.


Within the greater Austin area, we saw similar trends.  The median sales price for single family homes in the Austin-Round Rock MSA increased 10% from July of 2019, and the number of total homes sales for July increased at the same year over year rate as within the city limits, 21%.  Homes in the greater Austin area spent a little more time on the market last month compared to homes within the city limits.  The average days on market within the Austin-Round Rock MSA was 44 days last month - still 3 days less than July of 2019.

Unprecedentedly low interest rates are fueling buyer demand, and despite Covid-19 concerns the Austin economy is still managing to create new jobs that spur an influx of new residents. Combined these factors resulted in the second strong month of consecutive home sales within the greater Austin area. Now, the real question is do we have enough housing supply to keep up with buyer demand?
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Want to know what’s happening in your hyper-local Austin market?  Contact me today and I’ll give you the run down!

If you put less than 20% down on the purchase of your home you will also have some form of mortgage insurance in your total monthly housing payment.  Private Mortgage Insurance (PMI) is required for conventional loans with less than 20% down and Mortgage Insurance Premium (MIP) is an insurance policy required on Federal Housing Authority (FHA) loans.  Both PMI and MIP are protection for the lender in the event of default.  A borrower may request that PMI be removed when the loan to value ratio reaches 80% either through payments to the principal, appreciation of the home, or a combination of both.  MIP also may be able to be removed, but it will vary based on the loan terms and could even require a re-finance.

Although they are not traditionally included in your monthly mortgage payment, Home Owner’s Association (HOA) fees are something that should be included when thinking about your monthly housing expenses.  HOA fees for some Austin area homes exceed $1,000 per month!  Even though these figures are not paid in conjunction with your monthly mortgage payment, they are factored in when determining loan eligibility.  Other factors to consider include utility costs.  An older home may have higher utility bills compared to a newer home that has more energy efficient upgrades.  A home located in a Municipal Utility District (MUD) may have a higher tax rate because of that MUD payment.  Homeowners in a Public Improvement District (PID) will have to pay a fee, usually annually, to cover the costs of the infrastructure. ​

As you can see, your monthly hosing payment is made up of many different factors.  It’s important to consider all of these items when looking for a home you can afford.  Make sure to look into all of the details before you fall in love with your next home.  If you have questions about the home buying process, or want a dedicated broker to help you navigate the Austin real estate market, contact me today.

Located on the south shore of Lake Travis in the community of Lakeway, Rough Hollow offers residents direct lake access, sweeping hill country views and top notch amenities.  Rough Hollow has it’s own yacht club and marina where residents can store their boats, enjoy concierge service, and dine at the on-site restaurant. They even offer complimentary stand up paddle board and kayak rentals to guests (I mean residents). The community also features a resort style pool complete with swim up bars and a lazy river.  If you feel like enjoying yourself outside without getting wet there are tennis courts, soccer fields, a playscape, volleyball courts, a dog park and an amphitheater. There’s also a state of the art fitness center and a splash pad for the little ones.  Speaking of kiddos, Rough Hollow feeds into one of the best school districts in the Austin area, Lake Travis ISD.

Also located north of Austin, Rancho Sienna is a community full of amenities located in Georgetown.  The Sienna House is the heart of the community; here you will find the fitness center which is open 24 hours a day and has tons of workout equipment plus classes for residents to enjoy.  There’s also a basketball court if you feel like shooting some hoops.  A large covered pavilion allows residents to gather year round.  There’s a cozy wood-burning fireplace for keeping warm in the winter and a large fan for a cool breeze in the summer.  The Sienna House also has a large grassy lawn for casual picnics, movie-nights, and summer concerts.  The Sienna House pool offers something for everyone:  dedicated lap lanes, water volleyball, a beach, and Ol’ Dumper who keeps the little ones entertained.  Of course a master planned community in Austin wouldn’t be complete without a splash pad, and Rancho Sienna has not one but two splash pads for the kiddos.  Don’t think Rancho Sienna forgot about the fur babies; they have dedicated dog parks for small and large breeds, and if your pup need more activity consider taking him for a hike along Big View Trail.


Need help choosing which amenity-filled Austin community is right for you?  Contact me today, I’d be happy to help you find your new home.