…that there are at least TEN points in a standard One to Four Family Residential Contract promulgated by the Texas Real Estate Commission that, if not paid close attention to, could cost a seller thousands of dollars???  1. The new contracts, mandated as of March 1, 2011, which are dated 2-14-2011, now include several items in paragraph 2.B&C that require certain things in a property to be included in the sale that a seller may want to exclude.  Items like mirrors, television antennas, satellite dish system AND equipment, mounts and brackets for televisions and speakers, water softener systems, swimming pool equipment, and ALL window shades, draperies, and rods, to name a few.  If a seller is not paying attention to this paragraph it could cost them money due to an oversight of excluding items they value and want to retain.

2. Paragraph 6.B. states that a title commitment will be provided to a buyer, by the seller, within 20 days of the effective date of the contract (when both parties agree to terms and sign the contract) and the buyer has a negotiated time after that to object or withdraw from the contract due to the information in the commitment.  If the commitment is not delivered timely, the buyer may wait an additional 15 days or up until closing and could have a “free walk away” from the contract regardless of what is agreed upon during the option period.  With multiple contracts, this could cause the loss of another more appealing offer or at a minimum the loss of marketing time if the buyer withdraws at the last moment.

3. Paragraph 6.C. is a little tricky with regard to the seller providing the buyer with an old survey, which is typical but must be paid special attention.  If the survey AND a T-47 affidavit stating there have been no changes to the property foot print since the survey was prepared are not delivered within a negotiated time, then the seller could be at risk for buying the purchaser a new survey which could be a $400-$600 expense to the seller.

4. Paragraph 6.D.  allows the buyer a negotiated time in days, after the title commitment is received, to object to items on the title commitment.  This line is well hidden and often times overlooked by agents who then leave the time for review and objection open ended.  A costly mistake for a seller in terms of risk and time.

5. Paragraph 7.B.2. addresses the delivery of the seller’s disclosure notice to the buyer within a negotiated time in days.  If the deadline is missed, the buyer may terminate the contract at ANY TIME up until closing and the earnest money will be refunded to the buyer.  This gives complete control to a buyer in a transaction and minimizes any leverage in negotiations that a seller may have.

6. Lender required repairs are not REQUIRED to be paid by either party to the transaction.  If a buyer refuses to pay lender required repairs, he may terminate the contract; however, a seller could pay the repairs to keep the contract in tact unless the cost of repairs is over 5% of the sales price in which case the buyer has complete control over that decision.

7. Paragraph 9.A. addresses the closing date, the most exciting date on the contract!  However, if you as a seller are paying off a FHA loan, be careful.  If the contract states closing to be on or before April 30 and some unknown delay in the loan process or repairs takes place causing the closing to be pushed one day to May 1, you Mr. Seller get to pay a whole month of additional interest on your payoff.  FHA payoffs are always calculated as the full month of the month in which the closing takes place, so be sure to pay off that loan at the end of the month or a day or two early.

8. Paragraph 12.A.1.B. is another obscure line item that is sometimes overlooked.  It is where the buyer asks the seller to pay for part or all of the buyer’s closing costs.  If skimmed over in the review of the offer this could be extremely costly since many buyers may request $3-5,000 or more in closing costs from a seller.

9. Occasionally, buyers and sellers cannot come to agreement or something is found in the property inspection that is a “deal-killer” for the buyer without negotiation.  At that time a termination and release of earnest money is required.  If either party wrongfully fails or refuses to sign a release acceptable to the title company within SEVEN days of receipt of the request they will be liable for liquidated damages in an amount equal to THE SUM OF three times the amount of earnest money, the earnest money, reasonable attorney fees, and all costs of the suit!  A seller cannot re-sell his home until that escrow item is cleared or title will be clouded.

10. LAST BUT NOT LEAST!  Of the many items in a contract requiring attention, this is the last major point that should not be overlooked by a seller.  The termination option is the term (usually 5-14 days) during which the buyer pays a nominal fee to perform all due diligence and inspections.  The buyer can walk away for ANY or NO reason and only forfeit the negotiable option fee (usually $100-200) and still have their earnest money protected.  HOWEVER, if the seller does NOT receive the option fee within two days after the effective date of the contract or if the option fee amount is left BLANK, the termination option is NOT a part of the contract and the buyer has NO UNRESTRICTED RIGHT TO TERMINATE the contract.  A huge mistake on a buyer agent’s part and a windfall for the seller in terms of negotiation.

I am not an attorney and cannot and will not appear to practice law.  These are my interpretations after 30 plus years of experience and any buyer or seller should seek the advice of an attorney if they are not comfortable with any terms of a contract.  My comments come from actual transaction experiences and strategies developed over time and, I believe, are solid guidelines for structuring an offer to sell residential real estate.  Call a Realtor with experience.  Don’t Do It Yourself or you could be sorry.

(photo is “Clueless” by Blyzz)

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

Allandale is one of Austin’s favorite North Central locations.  Close to all amenities, close to downtown, good schools, a great family neighborhood, and relatively affordable prices when compared to other central Austin neighborhoods.  Go to the search function on www.LesShermanRealEstate.com and search for Allandale or zip code 78757 for available properties. 

Click on the green and white thumbnail, to the left, to view the Allandale Sales History from 2006 – 2010.

Map of Allandale area in Austin, TX
<http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=202602252876369815318.00046ac4eeb1d52295a2b&source=embed&z=13

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

The “10 Most Costly Mistakes that Buyers Make” can be easily avoided if you hire the right buyer representative.

  1.) Making an offer on a home without being pre-qualified
  2.) Not having a home inspection.
  3.) Limiting your search to open houses and ads on the internet.
  4.) Choosing a real estate agent who is not committed to forming a strong business relationship with you, or not having an agent at all.
  5.) Thinking there is only one perfect house out there for you.
  6.) Not considering long term needs.
  7.) Not examining insurance issues.
  8.) Not having a home protection plan.
  9.) Not knowing the total costs involved.
10.) Not following through on your due diligence.

PRE-QUALIFICATION streamlines the process and puts the sellers/seller’s agent at ease that you are capable of buying the property. It also informs you of your “real” parameters so that you are not chasing properties that do not fit your budget and/or goals.

HOME INSPECTIONS will determine hidden problems in a property that may not be visible and allow you to have a second chance at negotiating a fair price for your target home.

YOUR SEARCH IS LIMITED if you only rely on printed information and internet ads. Much of this data is outdated by the time you see it and many internet sites are not kept current and up to date on a daily basis. Contact a Realtor that has up to the minute data via the MLS and who is active in the market to know of even upcoming listings that may not be published yet.

CHOOSING AN AGENT is a critical process and can save you thousands of dollars. You want an agent that is full time, committed to your welfare, knowledgeable, familiar with the necessary contracts and experienced in negotiations. One missed detail could cost you in the transaction.

THE PERFECT HOME does not exist. Buying a home is a process of elimination and all homes will have unique properties that you may or may not like. You have to decide where you will compromise and where you will not. New properties arrive on the market daily so be open to all possibilities; however, if you are too rigid in your expectations you may miss the best match for your needs.

CONSIDER LONG TERM NEEDS. Be careful of emotions overriding changing needs, market performance, and external influences. Plan ahead because most homeowners will live in their home an average of 7 years before selling and in most markets you will not break even on your purchase and selling costs for the first 2-3 years of ownership.

EXAMINE INSURANCE NEEDS in advance. Ask your insurance agent to study the prior history of a home so there are no surprises and be sure you have adequate coverage for all incidents that can realistically occur to the property so you don’t suffer financial losses down the road.

BUY A HOME PROTECTION PLAN. A good agent can negotiate for the seller to pay for a one year residential service policy for you that essentially covers some basic repairs that your homeowner’s insurance policy does not cover. This is especially critical when purchasing an older home.

KNOW YOUR CLOSING COSTS. Pre qualification is also good to help you determine closing costs for your particular lender so you know exactly what to expect in addition to your negotiated price in the way of costs to buy a home. Sometimes closing costs can be negotiated to be paid by the seller on your behalf but you cannot assume that the seller will always comply with that type of request. Be sure to study your settlement statement from the title company prior to closing so there are no surprise costs to you.

FOLLOW THROUGH ON YOUR DUE DILIGENCE. Be sure to research or ask your agent to research crime rates, schools, utilities, environmental factors, and any external influences that may be of concern to you. Sometimes these factors can be overlooked when the property itself is mesmerizing and you end up paying for the oversight later in reduced resale opportunities.

The bottom line is to hire professional help to make sure your investment is optimized. It could be the best savings account you ever open.  Call Les Sherman at 512-947-8333 to discuss whether you need representation or not.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

Everybody is always searching for ways to save money, and some of our biggest expenses are “essential services” such as electricity, gas, phones, etc. Per the Austin Board Of Realtors newsletter, I’m sharing good news!

Coming Soon: A Utility Connection Source for You!

To help better serve it’s members clients, ABoR has teamed up with WhiteFence™ to bring you CentralTexasConnect—a free online service that helps people find the best deals on essential services for their homes. Whether you are moving or just looking for a great deal, let me refer you to CentralTexasConnect to find deals on phone, Internet, television, electricity, natural gas and other home services in your immediate area.

By simply entering a street address into the secure site, you can order new service or save money by finding the most comprehensive list of plans available for your specific address, from over 400 nationally recognized partners. As a trusted home service shopping source, CentralTexasConnect makes it easy to establish service directly on the site in a few simple steps.

CentralTexasConnect will launch on Friday, January 14, 2011. Once launched, you can go to CentralTexasConnect.com to begin saving on essential home services.

www.centraltexasconnect.com

Please report back and let me know how much money you saved!

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

Everyone wants to be in a safe neighborhood, but the issue becomes subliminal or hidden through most of the investigation and previewing of homes until the commitment phase gets close. Check your local crime stats with your local police or city in any given subdivision before falling in love with a specific home. You’ll be glad you did and it will save the pain of letting go of that “perfect” home because of the unknown fears of living in a crime ridden area. In Austin and the surrounding metroplex, go to www.spotcrime.com  and enter any specific address for the latest in crime stats for a five mile radius. You’ll be surprised what you find, but you will be glad you did! In Texas, you can also search www.txdps.state.tx.us  for more criminal activity and sex offenders that are registered in specific areas. Don’t be paranoid but be smart and be safe!

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

What a great relief to enjoy some rain over the last two days!  For those of you who were bypassed, I’m sorry but hopefully it will come back around, unlike some of the current market opportunities.

 Right now there are more opportunities for buyers and sellers than I have ever seen in my 29 years of working in the Austin real estate market.   One thing that may NOT come back around are the great interest rates we’re experiencing.  Recently, my clients and I have experienced interest rates on 30 year mortgages from 4.25-4.75% with good credit and sound financial statements.  Fifteen year rates are even down in the “3’s”! Also, if you are refinancing, I work with some of the best mortgage lenders in town and can direct you to the best terms.   It doesn’t benefit me financially but I get the satisfaction of knowing I’m helping my clients and friends, which is one of the added value characteristics of my service.

 When  buying a home, every decrease in interest rate of 1% gains approximately 11% in buying power because of the leverage of money.  When interest rates increase, you LOSE 11%+/- of your buying power for every 1% that the interest rate increases, unless your income is increasing 10-15% along the way!  Now is one of the best times to purchase, because of high inventories and low interest rates.  Interest rates could easily increase 2% over the next year with inflationary news on the horizon, which would equate to a 22% loss of opportunity.  Let me know how I can help you, your co-workers, family members, or friends. 

 You now have the opportunity to trade into a higher equity position by selling your home and buying another that is on the market now.  We have an extensive marketing plan to optimize your position and possibly save you as much as 15% on the sale of your home.  If you are selling AND buying, we have other plans to save you even more money.  A partial list of services I include in my marketing plan are professional staging, professional photography, virtual tours, direct texting services, email marketing, full internet exposure including 34 syndicated websites and the top 20 websites on the internet, full MLS exposure, and enhanced Realtor.com listings.  We also ensure feedback and a constant monitoring of your market to determine what changes are taking place that will impact your decisions.

 Real estate is my full time career.  After 35 years as a licensed agent and broker, I’ve learned buyers and sellers want honesty, integrity, transparency, knowledge of the market, skills in negotiating and the use of current technology, a sense of humor, a personal touch, and the ability to enjoy the process and have fun along the way.  My focus is to provide you with those qualities and skills, and to fully leverage my experience in appraising, buying/selling, construction, and lending to optimize my client’s position in the transaction.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

Twin Creeks Country Club and Reserve is a 760-acre community located in Cedar Park, TX.

This community features a signature golf course designed by Masters Champion, Fred Couples. Members of Twin Creeks will enjoy first-class facilities and amenities that include a private clubhouse, dining facilities, a fitness center, walking trails, a community recreation center, and a water park with junior Olympic-sized and resort-style pools.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

Circle C Ranch offers a variety of amenities including Circle C Swimming Center, Circle C Café and Catering, Circle C Child Development Center, Circle C Tennis Club, Grey Rock Golf Club, the Veloway, and Lady Bird Johnson Wildflower Center. The neighborhood also offers a variety of nature trails and parks. Activities include volleyball courts, basketball courts, soccer fields, tennis courts, and multiple playgrounds.

Circle C Ranch Swim Center

The Circle C Swim Center features an Olympic-sized swimming pool and baby pool.

The center also offers programs such as the Circle C Select Swim Team and swimming lessons for residents of Circle C Ranch.

Circle C Cafe and Catering

The Circle C Café is located at the Swim Center and serves hamburgers, salads, pizzas and nightly gourmet specials. Delivery from Circle C Café is always free to the residents of Circle C Ranch.

Circle C Catering offers complete catering services for events of all sizes at any venue. Jaime Arevalo is the owner and Executive Chef of Circle C Café and Catering. He also owns and operates a Café at the Lady Bird Johnson Wildflower Center.

Circle C Child Development Center

Circle C Child Development Center offers programs for children ranging from eight weeks to five years old. They also offer after-school and summer camp programs from elementary age children. The Circle C Child Development Center is a great resource for families looking for quality childcare where their children can learn, play and grow in a nurturing environment led by exceptional teachers.

Circle C Tennis Club and Grey Rock Golf Club

The Circle C Tennis Club boasts eight tennis courts and a pro shop. Grey Rock Golf Club features an 18-hole championship course designed by Jay Morrish. At the Club you can receive expert guidance and top-notch instruction from their staff of PGA Professionals. Members of the club also have access to wonderful dining choices in a gorgeous hill country setting.

The Veloway

The Veloway is a 3.1-mile, 23-foot-wide paved asphalt track exclusively for rollerblading and cycling located on more than 100 acres in the Slaughter Creek Metropolitan Park.

Lady Bird Johnson Wildflower Center

The Lady Bird Johnson Wildflower Center is located near Circle C Ranch and the Veloway and features a café, gardens, and nature trails. The mission of the Lady Bird Johnson Wildflower Center is to increase the sustainable use and conservation of native wildflowers, plants and landscapes.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

This 5 bedroom, 3 bath, 3 car garage home in Village at Western Oaks is on a corner lot with great trees and is nearby the Mills Elementary School. Recently, the home has had a new interior and exterior paint job, water heater and air conditioner. Enjoy fruit trees in your new home while outside and surround sound/ CAT 5 wiring while inside.

We're sorry, but we couldn't find MLS # 6530308 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale

This just listed home in Circle C Ranch sits atop one of the largest lots in the neighborhood and has recently been updated to include travertine tile and brand new wide plank hand scraped wood flooring.  This house is on a cul de sac and has a private backyard.

We're sorry, but we couldn't find MLS # 2966447 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

                          

Les Sherman, Austin Real Estate - Austin Mueller Tarrytown Circle C Great Hills Allandale homes for sale