Texas Hill Country Blog

PRODUCT VERSUS MARKETING DRIVEN
June 21, 2010

Practically everyone living in America today   has grown up with television and its marketing schemes and those younger are now growing up with the Internet and all of its marketing.  In the current real estate market companies such as ours get multiple calls daily from vendors trying to sell us the next best website, search engine ranking, or print media advertising.  After a while they call again and offer us the ‘new’ price deal on their brilliant products.  As a buyer or seller of real estate, you may also be overwhelmed by a real  estate companies marketing as opposed to just getting the answers you want.REALTORS have always been leaders in advertising and promotion in their efforts to sell property.  Efforts have always been made to put a property in its best light to public.  Today’s internet society takes away from some of the promotion as interested buyers have so many avenues to learn about a specific property.When markets are doing well it is so much    easier to ‘hype’ a property.  Buyers expect the information and want the info to make a fast decision before a property is sold.  When the markets turn downward buyers don’t want or need the ‘hype’.  In the current market, the facts become important.  Buyers want all  of the available information to make an informed decision.  They want to work with informed agents  who know the market and give them the best advice.  Buyers will always pay for value.  That value is what they establish in their mind by having all of the choices and all of the information available to them.A variety of four-color magazines, pictures, virtual tours and adjective prone vocabulary cannot sell a property that is over-priced.  Some real estate companies continue to use these same marketing  techniques that worked 3-4 years ago, but the buyers are no longer buying into this fluff marketing.  Today’s buyers want and expects solid data, real  information, and in a timely manner. 

So if you are a seller, this is the buyer you are trying to reach.  Price your property to compete in this marketplace and you will see results.  Price too high and you’ll still be trying to sell two and three years from now.  Price right to create value and buyers will recognize this fact and stand in line to purchase your property.  It sounds easy, but it is very complicated to find that right price in today’s marketplace.  It takes an experienced professional working in the trade daily and knows the markets movements.  You don’t find this with those companies who still rely on the mass marketing of the print media or the internet.  They still think they can fool a buyer into a value, and it doesn’t work anymore.

Don’t be fooled…Sherman D. Durst

YOU GET WHAT YOU PAY FOR IN THE HILL COUNTRY
June 11, 2010

        When you buy a home or land in the Texas Hill Country, prices can range from slightly to   significantly different as you move from one to county to the next.  The price can also vary in each county depending upon the location of the property in the respective county.        Prices will always be lower in Mason than in Llano which is less than Gillespie County.  As you move further away from the population areas of San Antonio, Austin, Houston, or Dallas, buyers begin  placing values on driving time as well as the amount of leisure time they are able to spend at their weekend property.

        If the circumstance is a permanent home purchase, buyers place certain values on distance back to major shopping areas in Austin & San   Antonio as well as the amenities of living in a  community that provides the basic services of hospital care, shopping, dining opportunities and more.  The communities with more to offer will   always see their properties sell for more money.

      Each Texas Hill Country town has something to unique to offer which allows buyers the  opportunity to shop from a large selection of properties.  Many times buyers visit Hill Country real estate offices stating that they are looking at Georgetown, Kerrville, Brenham and Fredericksburg.  This totally confuses local REALTORS      because we already know the many differences of the communities, and the variation in available real estate.

      In a REALTORS mind, first the buyer should visit the communities they are considering to live in and not worry about real estate until they have chosen a community.  Why buy in an area because the property is cheap if you don’t know for certain that you will like living there or if the community doesn’t offer the amenities that are important to you and your lifestyle?

      One of our jobs as REALTORS, is to point out to the buyer that possibly they are doing their research in the wrong manner.  In addition, the REALTOR can explain to Buyers the price point differences in housing and why.   All real estate is local, meaning it is not logical to compare a home or ranch in Georgetown to one in Fredericksburg.  Likewise you can’t compare the two towns to each other, they are greatly dissimilar.

       When you start the search for your dream property, first decide where you wish to live since this is the most important part of the search.  Once you have decided, there will be plenty of properties and price categories to select from.  

 Let us know if we can help, Sherman D. Durst

WHAT TO DO, WHAT TO DO
June 9, 2010

 We get calls all week long asking about the  market.  When we get these calls the caller usually has been listening to the news of CNN, FOX, CNBC, CBS, etc. hearing conflicting reports that they feel like they don’t know what to do.The DOW’s up, the DOWs down, now it’s moving sideways.  Should I buy gold or silver? Or is it too late? Greece is pulling everything down, now China’s got problems, the EURO is up and then it’s down, PIIGS are the problem and what is going on in real estate?  Real estate sales are up, confidence is up, but there are so many for sale signs on homes?  In Fredericksburg    Realty’s 45 years of business there has never been more confusion.  This short column can in no way give you the answers for the world or even our own country regarding the many financial markets, but we can tell you why real estate is the place to be, especially in the Texas Hill Country.The Gillespie County MLS covers Gillespie, Blanco and Mason counties, in addition, we have sales in Llano, Kerr, Kimble, and Kendall Counties.  As of Monday, May 17, 2010, 176 properties have sold in the entire MLS compared to 122 this time last year.  For the entire MLS the dollar sales are double over last years $25,000,000 to just over $50,000,000 for this year.  For Gillespie County only 2009 had 69 sales compared to 99 in 2010 thus far and $16M in dollars sales in 2009 compared to $28M this year. The record year of all time for sales was 2006 when 274 properties had sold year to date for $63M in the entire MLS and in Gillespie County there were 210 sales for $42M.  While sales are down from these highs, they are actually doing very well in this area considering what we hear from Phoenix, Detroit, Florida, California and Las Vegas.  So if you have cash and you aren’t happy with the .05 per cent you are getting at the bank or you don’t trust the news media, Washington or Wall Street, then what you should consider is investing in Texas Hill Country Real Estate.  There are a few bargains to be found, there really aren’t any ‘real steals’, but that is a testament to the stability of our market, the equity of our market, and the conservative nature of borrowers  & lenders.

We don’t have those wild fluctuations where values went up 30-60% in a year or people doubling their money.  Consequently prices haven’t dropped 70% either.  If you are looking for a home there are many choices in every price category.  It is a great time to be a buyer with low interest rates and so many choices to pick from.  If you wish to be in the country, land offers many opportunities not only the enjoyment of ownership, but a place to go to get away from everyday life, to picnic and hunt, build a cabin or a permanent home.  City building lots and rural land residential tracts are important buys right now.  We feel there has never been a better time to buy for your future home.                                  

Since 1965 Fredericksburg Realty has been helping buyers and sellers with their real estate needs.  We don’t know much about Wall Street or Washington, except we don’t like what we see and hear.  So we are glad to be right here in the best place in the world….

Texas Hill Country Fredericksburg, Texas….Sherman D. Durst

THE TRICKS OF PRICING
June 8, 2010

  Price is the single most important part of placing your property on the market for sale.  Pricing correctly is always key.  The correct price can be different in markets going up or down.  Price too high and you stay on the market too long which puts you at risk of becoming what is known as shop-worn.  Then no one wants to show or see your property because they think something is wrong with it other than the price.  If you price too low, you may actually invite lower offers as opposed to getting the bottom price you selected.  When markets are going up as they were from 2002 thru 2007, you could stay ahead of the market and ask more than the sales data said your property was worth.  Your property could work its way into the right price in a short time if inventory in your type and price category were short.  In today’s market where there is excess inventory in all categories, pricing becomes more difficult.  An appraiser will do a market valuation on your property using sales data of similar homes in size, age,  condition, location and amenities.  A REALTOR may take the this process one step further and look at the current asking prices of homes that are currently on the market of similar size, age, condition, location and amenities.The purpose of the latter exercise is to establish if you are ‘competing’ with other homes on the market.  Buyers do comparison shopping looking at several homes that fit their needs.  Buyers usually don’t have sales data immediately available to them so they look at homes that fit their needs and then evaluate the homes by the asking prices.  Many times we hear buyers make the comment, ‘Well this is the best buy, but we wish it had a larger yard’.  If buyers look at enough homes, they begin to understand pricing as well as the REALTOR.An informed REALTOR will show you the homes for sale from the MLS that buyers might also be looking at, so you can have an idea of how you might compete.  If your home is competing with another in the same neighborhood at the same age, in similar condition and essentially equal amenities, and the competing  home hasn’t sold in 215 days, then possibly you need to price lower than this home.If you are a serious seller pricing your home to sell is your goal, then you must also position yourself better than the other similar homes for sale.  If all other factors of the competing homes are basically the same, then price will be the key difference.  The pricing of a home in a down market has nothing to do with what you owe or what you paid for the home 2 to 4 years ago.  The price has to always fit the current real estate market.  So if you wish to compete with the neighborhood homes and you want to get yours sold, as opposed to sitting on the market for seven months, then you need to price your home lower.  The next question buyers always have is this ‘how much lower’?  This part gets to be trickier.  A  market educated REALTOR will be able to advise you as to where to go with your price.  Price too much lower and you’ll start bidding against yourself, because in a down market, buyers always make an offer.  Price too close to your neighborhood competition and you haven’t separated yourself from your competition.  Price just right and get the offer, then a contract.The best price is always determined by having the best information of similar properties that have sold and those for sale.  The best way to gain information is to work with a knowledgeable full-time real estate professional.Sherman D. Durst 

MORE BUYER FEARS….
June 6, 2010

Last we discussed ‘pulling the trigger’ and  being qualified.  You are now more than ½ way home to moving into your new home.  Keep your eyes open and don’t be afraid to get to the finish line.

Once buyers meet the lender and get an idea of what they’ll need for a down payment and their monthly cost to own a home, they start thinking about painting, carpeting, sprucing up their new home.  Suddenly you start thinking about all of new additional costs wondering if you will have enough money?  This is the time to set your priorities on what to do.  Remember you are making a long term commitment to own a place of your own.  You’re not there for the short haul.  Everything you hope to do will be there when you are ready and can afford to do it.Possibly this is when ‘Buyer Remorse’ sets in?  You begin to wonder all sorts of things, why you ever thought of this crazy idea and what does that lender really know about you and your money? Remember that you have been approved by ‘industry standards’ that verify that you can complete the purchase.Next you might think…I don’t even like this home, it’s not what I wanted.  A word of wisdom, ‘the perfect home has never been built and never will.’  You are purchasing what you can afford.  When real estate markets regain their footing in the future, then you can plan your next leap up to a larger or better home.  And It won’t be perfect either.  In the interim you will have gained equity to give you a more substantial down payment on your next home, you will have had the pride of homeownership, and have the advantage of tax write-offs.As a Realtor for over 30-years, I have always advised to buy the most home you can afford in the best neighborhood you can enjoy.  This will always keep you happy and also help you gain equity in the future.  Finally, I believe in a team effort.  Money is tight, but this is the time to have a team working for you.  That team includes you Realtor, your lender, an attorney, a surveyor, a home inspector, an insurance agent and more.In our technological society of today, we think all the answers are on the internet. People still buy and sell homes and people is what you have on your team to give you the best advice from purchase to close and thereafter.  Working locally give you people with experience and knowledge in the local market who help you make the best decisions of all. 

Fear not, Sherman D. Durst

THE MARKET JITTERS
June 3, 2010

In traditional real estate times, the May market is usually a slow month for sales.  It is the end of the school year and everyone has plenty to do, some are anticipating family vacations, then there is Memorial Day holiday plans.There are no traditional markets any more.  You can watch all the financial news stations, and listen to experts with years of experience with an overabundance of data, and they are confused about what is going on also.After the great sales years of the 2000’s and then the downturn since 2008, sales patterns in the local real estate market have also changed.  Like the securities experts, the local REALTOR has a tool box that is full of data, yet no real patterns seem to develop.  We can give you details and information on what is selling, what is currently on the market and for how long, but to try and figure out the buying public is now out the window.  There are always buyers who need to buy and those who try to buy in a good market.  Even with lower prices, low interest rates, and  motivated sellers, the real estate market has ‘jitters’ too. 

With this in mind, try to be a realistic buyer in the real estate market of today.  Always work with a local real estate professional who knows the community and understands the data.  Shop hard, but stay focused on what you really want so you don’t waste your time looking at the wrong properties, listen to your REALTOR.

A part of being a realistic buyer is knowing that if property is priced at $295,000, you won’t buy it for $195,000 if it is priced right to begin with.  The local markets haven’t dropped that much.  In some cases, we are seeing stable and even higher sales prices.  Not all, just some.  

And don’t just shop the internet; try taking an old-fashioned approach of getting in your car and driving the streets.   Watch for price reductions, days on market, and other tell-tale signs that an opportunity may be right in front of you.  Don’t get mad at the market; work in the market. Always ask questions, look at plenty of properties, work with an informed agent, which will usually figure out quickly what you are looking for, and they will call you when new listings come on the market.  Buying and selling real estate is a business for REALTORS, but it is a long-term if not lifetime commitment for most.  Seek good sound advice.  We can help especially in a market with ‘jitters’.  We’re here every day working the business of real estate.

Sherman D. Durst

ARE YOU A TIRE KICKER OR A REAL BUYER?

In today’s real estate world, the REALTOR wears two hats: 1) Representing You, the Seller or 2) Representing You, the Buyer.  If we represent you as a Buyer, you will sign a written agreement, called Buyer’s Representation Agreement.  With this agreement you will become a client not a customer.Even with the technology of today, working with an informed local real estate agent that represents you, will be one of the most important parts of your buying process.  Your REALTOR will put the wants and needs of you, the Buyer, first and foremost.  All of your information is kept confidential and all the information about the property and the Sellers is given to you, the Buyer.It is the duty of the Buyer’s Agent to educate the Buyer and give them advice with facts which can include comparing competing properties to help the Buyer best understand their options, showing all properties that fit the Buyers needs, assist in negotiating price, provide price counseling, negotiate the earnest money agreement, help find legal counsel, aid in financing options, and support the Buyer in many other areas, all to the Buyer’s best interest.If you consider yourself just a tire-kicker/customer, then there is no obligation for Buyer’s Agency.  The agent is assumed to be representing the Seller, until you the Buyer, employ them to represent you.  Did you know the Agent is working to get the Seller the best price?  Without the Buyer’s Representation Agreement, the Agent can not give opinions, only facts, allowing you to draw your own conclusions.  The Agent will in fact protect the Seller, since you are only a customer, and not a client.Whether you are selling or buying, always work with an informed local REALTOR, whom you have employed to work for you, so that you are in fact their client.Since 1965 Fredericksburg Realty had been providing timely, experienced, and knowledgeable advice to Buyers and Sellers.  You don’t stay in business for forty-five years unless you are doing things right and taking care of your clients.

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