Austin Texas Real Estate Blog

If you don't mind, I'd love to hear some input and perspective from you. I have a number of decisions on my mind with our company, and I would welcome any helpful advice/direction. Please note that I said "helpful". :) I'm editing this opening paragraph now that I've finished writing the rest of the post and I realize that some of the stuff I wrote below seems a little disjointed. Hang in there if you can.

Here's the thing: I've been selling homes full-time in Austin for 15 years as of this month. I started my own brokerage just over 7 years ago. We've had some very good years (thankfully, 2011 was one of them) and a couple of very lean years, too. As we begin another year, my business partner and I are evaluating things to try to determine the best direction for ourselves and our company. I find myself going back and forth between two extremes: big-time company growth vs. streamlining, saving money, and focusing on my own sales.

We're paying way too much for office space, so we're likely moving down the hall to a smaller, much less expensive space. Most of our agents work from home, so it seems silly to pay for a large space with lots of barely-used desks. This downsize in physical office space will save us $1700/month, so that's a no-brainer. We will be moving.

I could use some of the savings for additional marketing/branding, I suppose. Again, I'd have to think about the most effective use of these dollars. I've used just about every type of print and internet marketing technique over the years, and it seems that the internet is the only one that makes much sense, outside of handwritten notes (not a joke). Again, I welcome your input.

We have a nice system in place for the leads from our website, and a relatively substantial number of new prospective buyers sign up every day. I would love to increase our conversion rate for these leads, since I worked so hard to get the traffic in the first place. It seems that this would probably entail more accountability, and a different system, although I have no idea how much this might cost to design and implement. I could focus on SEO, but since we're getting ample traffic, perhaps the site needs a re-design to maximize its effectiveness? Here's our primary website: http://www.austintexashomes.com

I DO offer something that seems to be in short supply based on my conversations with agents: I care. I genuinely care about the people who work for us, and I am available pretty much any time to answer questions or provide advice. I've never been involved in a lawsuit or mediation of any kind, because we really try to head off problems before they grow into full-fledged legal issues. I value honesty and integrity, which might be a hindrance to substantial growth, although I'd like to think otherwise. Maybe I'm not cut-throat enough, and I'm okay with that.

There's no easy way to say this next part, so I guess I'll just be blunt. I promise it's not sour grapes, just an observation. I have seen other local companies grow to 50 agents and beyond with seemingly less to offer, other than possibly bravado and aggressiveness on the part of the managing broker/owner. I don't begrudge them their success, and I'm sure I could learn something from their recruiting efforts. Having interviewed a few agents who went to work elsewhere, only to be disillusioned, I just can't bring myself to over-promise to agents. Yes, we have leads. No, I can't tell you how many to expect, nor do I want agents who are dependent on me or the company to produce all or most of their business.

I haven't instituted minimum production standards for our agents, partly because it struck me as disingenous, since I wouldn't have been given a chance with my original mentor/broker if these were in place, but I think I was a great addition to his team for 8 years. It reminds me of the classified ads I used to see for Dell Computers that required a college degree and 2-4 years of experience, when the CEO was a college dropout. That being said, I don't think I want very many brand-new agents, partly because of the time commitment involved in training. What are your thoughts on minimum standards for sales production?

I've managed up to 20 agents in the past, and I think I could handle a lot more (40-50+), under the right circumstances. Namely, if I weren't so dependent on my own sales to provide the vast majority of my income, and if the agents were at least somewhat self-sufficient. I recognize that this sounds obvious.

I guess the bottom line is that I am torn between building an actual business that can provide income for me on its own vs. continuing to grow my personal sales. I am now 41 years old. I don't think I want to drive people around showing houses (even if they're nice houses) when I am 60 or 70.

I need a plan.

Feel free to chime in below with ideas. I'm all ears.

Thanks for reading!

Photo credit:Joe Shlabotnik via Flickr.com Creative Commons license

It seems as though I hear more and more these days about the notion of "influence", both from sites like Klout and from various industry lists (Most Influential, etc.). My intent with this post is not to discount or disavow any such influence, but to provide some food for thought.

There are plenty of people I can point to throughout the course of my life who have served as good influences on me and my character. Of course, I also had a few that were...less than helpful. 

When it comes to my own personal influence, there aren't that many areas that concern me. Here's a sample:

Am I influencing my wife and kids in a positive way? As a father of four, there are few things more important than the mental and physical well-being of my children. I love them all dearly, and I am fascinated to watch them grow and develop into really interesting people. I teach them about our faith, our love for one another, and how to relate to the world at large. I am incredibly thankful that I've been blessed with a wife who does a stellar job as my partner in this regard. I tell each of them that I love them...daily (yes, even my teenage son). I want them to know that I am always available to talk, and my love is unconditional. 

Am I influencing my friends to trust me? I sure hope so. I like to think of myself as a very loyal friend, although I'm certainly not perfect. The people that I see on a regular basis are important to me, and I care about how they view me.

Am I influencing my clients to remain loyal, and to send their friends and family to me? Without this particular influence, I wouldn't make a living selling homes. I've been doing this for 15 years now, and 2011 was my best income year since 2006. Why is that? Well, part of the reason is that I focused on my clients and on providing the best possible service that I could muster for them. This has always been important to me, but I was more intentional about it this year.

Am I influencing the world? This is a tough question. I've seen examples of small actions that have long-lasting effects. Like the "butterfly effect" or the tried-and-trite ripples in a pond, we often don't really know what kind of impact we have on the lives of those around us. I've also had more obvious influence on three of my friends who credit me with saving their lives. Since I can't leave that last sentence hanging with no explanation, I will say that I talked two of them out of suicide (one on multiple occasions). The other told me that he was inspired by my 2010 weight loss and changed his lifestyle dramatically.

The bottom line is this: All I can do is try to be obedient to God and attempt to provide a good example for my friends and my family. THAT is the influence that matters to me.

Thanks for reading!

Photo credit: raspberreh via Flickr.com

I've been selling homes full-time in Austin since 1997. I've trained dozens of local agents, and coached many others around the country. As a broker and owner of my own independent real estate firm, I've helped with hundreds of transactions. Through my online networking efforts and "in person" conferences, I'm thankful that I've met hundreds (maybe thousands) of agents. 

Why do I mention this?

Well, it's pretty straightforward. Having encountered agents and clients of all types, I've noticed one trend:

Real estate is neither as easy as clients think, nor as hard as agents think.

Allow me to explain:By and large, I think the general perception from the public at large is that we real estate agents have it pretty easy. Show a home or two, help with some paperwork, then coast into commission town. I'm oversimplifying things, of course, but I know that I'm not far off here. I wish it were true that my job was that simple. It involves being really patient and diplomatic even in the face of major adversity, often from your own colleagues. Sometimes, clients aren't loyal. Often, lenders make mistakes that jeopardize sales. Frankly, there are a lot of moving parts when it comes to real estate sales, and a lot of juggling has to occur.

Having said that, real estate isn't rocket science, either. When agents are struggling (I've been there), it's easy to blame outside factors:

"The economy is in the tank."

"Banks have tightened guidelines, so no one can get a loan anymore."

"The media won't quit talking about how bad things are."

Believe me, I've had the same thoughts myself at times, but the bottom line is this: In any given market on any given month, people are buying homes. They might be buying fewer homes than they were 5 years ago, but there is business to be had everywhere. 

If you're a consumer reading this post, know that most agents work hard and a solid number of us are good at what we do and conduct business in a professional manner. If you're an agent, grab your share of the pie. The pie may not be as large, but neither is the number of people who want a piece anymore. Too much analogy? 

There's the paradox as I see it, and of course it's just my opinion. I've always found it interesting how different the perspective is from the outside vs. the inside of our industry. In my own naive way, I think it's probably the opposite of how doctors are perceived by others ("Wow, being a brain surgeon has to be a really hard job.") compared with their self-perception ("Brain surgery ain't hard."). Alright, in fairness, they probably don't say "ain't".  

What are your thoughts? I welcome your feedback.

Photo: rrenzoo Creative Commons 2.0

When you’re trying to sell your home, there are things that you simply can’t change. If you bought in an awkward location, there’s not much you can do about that now. If the plan isn’t as functional/modern as most buyers would prefer, this is something that may cost too much to remedy. You also can’t really control which buyers are in the market at any given time.

However, there are three big items that you can and DO control:

• Price
• Condition
• Agent

Pricing: This is a biggie. Make sure that you give this part some sincere thought. You and your listing agent don't dictate the market - buyers do. In fact, one definition of market value is the price that a ready, willing, and able buyer will pay for your home.

A solid agent can provide a comparative market analysis (CMA) that should give you a good idea where to begin when pricing your home to sell.

Also, give some thought to where the "breaking points" are with the homebuying audience. In my local market in Austin (and probably elsewhere), $200,000 is one such breaking point. What that means is that there are a lot of buyers looking UP TO $200,000, but NOT over. If you price your home at $202,500, you are hurting your chances of selling. Price it at $200,000 or $199,999 if you want to use the retail psychology trick. Either way, it's a big mistake to go just over one of these breaking points. Your agent should be able to help with this, too. 

TIP: If possible, go with your agent to see a couple of the homes that you will be competing with nearby. This will allow you to see what potential buyers are seeing, and it often gives you a much better sense of how your home stacks up.

Condition: As I alluded to above, you probably don't want to spend a fortune remodeling your home, but you do want it to show in the best possible light. Getting good photos, staging, cleaning the carpet, and painting if needed are all inexpensive ways to improve the condition. If you have repairs that you already know are needed, do them now. If buyers notice them, they tend to assume that the home isn't well-maintained. I guess the best advice I can give here is to get your house in the best possible condition with your budget. This WILL make a difference when you're competing with other places.

Agent: I would like to tell you that this is the single most important part of the equation, but it's probably not. Price, condition, and location will largely dictate whether or not you get offers. That being said, if you have an agent who isn't reachable by phone during reasonable hours, or who is unpleasant or difficult to deal with, or who doesn't really make an effort to present your home well, this will hurt you. Additionally, make sure that you really like your agent, because you will likely be spending a good deal of time talking to him/her. Ideally, you want someone who can get you the maximum exposure for your home, and who is reasonably experienced and good with technology (at least the basics). Friendliness and honesty are two characteristics that are critical. You aren't paying your agent to tell you what you want to hear; you're paying him to tell you the truth.

There are a number of other intangibles that are part of the formula for home sales success, but these are the ones that you can affect. "Location, location, location" still applies, but these are probably the next three in line.

Thanks very much for reading!

Photo: Diana Parkhouse Creative Commons 2.0

When dealing with real estate clients, one of the more difficult objections to overcome in the real estate industry is the fact that we are often perceived as predatory and unprofessional. If I had a nickel for every time I heard this phrase, "I haven't had very good experiences with REALTORS®", well, I'd have a whole lot of nickels.

My response? "Neither have I."

However, over the past couple of years, I am happy to report that I have rarely run across the types of agents who have traditionally given all of us a bad name. Yes, there are some who are still out there, but I get the feeling (I have no data to support this assertion) that many of the truly bad agents were driven out of business by the economic downturn we experienced here in 2008 and 2009.

As the broker and co-owner of a smaller independent real estate agency, I've trained dozens of agents on the sales process. I have tried to build my own business on a cornerstone of integrity and honest dealings, and I expect nothing less from my agents. If I have a client who's considering buying a property that seems like a bad decision, I say so. Conversely, if I see a buyer about to pass up the deal of a lifetime, I want them to recognize this, too.

Why?

That's an easy answer, and hopefully it's a common-sense one as well. If I do my job correctly, my clients will want to come back to me with all of their real estate needs. They'll also send their family, friends, and co-workers to me. Good service isn't always altruistic. It's good business, too.

Another reason that I strive to provide the best possible service is this: I will likely be called upon to help my buyers when they're ready to become home sellers later. If I helped them get the best property in the first place, it makes my job that much easier down the road. Again, not just a nice move, but helpful to my own bottom line also.

The best agents I've encountered are those who are good communicators, and unafraid to say, "I don't know, but I'm sure we can find out." There's no shame in not having encyclopedic knowledge, as long as you're willing to expend the effort to get the answer, right?

At any rate, my overarching point is that there are still plenty of "good guys" when it comes to real estate sales. And by "guys", I mean both men and women, just to clarify. Don't be frightened by any negative stereotypes that you've seen portrayed on TV or movies. Just because you had a friend or family member who was burned before, it doesn't mean that it will happen to you, unless of course you use the very same agent, in which case you're kind of on your own, eh?

I do have a couple of pointers which come in handy, if you're a consumer looking for a real estate agent:

• Make sure that your agent sells homes full-time. Part-timers probably don't have the necessary experience or skill set to help if things get dicey during the transaction. Full-time agents have probably seen more scenarios in their career, and they can finesse things better.
• This is a big purchase for you, so dump your agent if he/she makes you uncomfortable. You'll be spending a lot of time with this person. If you get a weird feeling, move on.

I could go on, of course, but those two items strike me as supremely important to mention.

I hope you find the agent of your proverbial dreams.  Thanks for reading!

Photo credit: contemplativechristian - via Creative Commons (found on Flickr)

As an eight-year resident of the Blackhawk area and a 16-year resident of Pflugerville, I like to keep an eye on the market values here in our neighborhood.  When the toll roads first opened in the fall of 2006, the prices started trending upward, then they flattened out somewhat, with some tough economic factors at play.  Since the fall of 2010, the market has been very active again in this area.  As a fellow homeowner in Blackhawk, this stuff is important to me, too! 

Currently, there are 5 resale homes available on the MLS in the Fairways, with an average asking price of $235,760.  The average square footage for these homes is 2,700, for an average price per square foot of $88.55. 

Presently, there are 4 homes under contract in the subdivision, with an average listing price of $212,075 and an average square footage of 2,706, yielding an average price per square foot of $78.85. 

In 2010, there were 23 sales closed within the Fairways of Blackhawk.  The average listing price was $225,468, and the average sales price was $216,678, which means homes sold for 96.1% of the asking price.  The average square footage was 2734 s.f. for these.

OTHER AREA NEWS:

Located at the southwest corner of the intersection of the aforementioned toll roads (45 and 130) and about a half mile from Blackhawk, Stone Hill Town Center will eventually have over 1,000,000 square feet of shopping and entertainment.  Home Depot, Best Buy, SuperTarget, Verizon Wireless, Mattress Firm, Chick Fil-A, Bealls, Rack Room Shoes, Dick's Sporting Goods and several others are open now.  In May 2011, a new Cinemark theater and a 24-Hour Fitness are slated to open as well.

HOW TO REACH US:

If you are a consumer living in another area around Austin and you are interested in seeing the trends in your particular neighborhood, please don't hesitate to contact me, and I can create a custom report for you.  All of my contact information is below. 

If you are considering selling your home in the Fairways of Blackhawk (or anywhere in the general Austin area), please feel free to give me a call.  I would love the opportunity to help you get it sold quickly.  Also, You can visit my primary Austin real estate website at www.austintexashomes.com.  You can also reach me anytime on my cell phone at 512-796-7653 or via email at jason@austintexashomes.com.  Thanks for checking out this brief analysis!

Last year, I blogged about this topic with solid results.  I hope to do so again.  If so, I can help out a good cause and my daughter at the same time.  

If you live in the general Austin area, let me know if you would like to buy some Girl Scout Cookies.  My 9-year-old daughter Aleah is selling them for the second time, and she wants to sell enough cookies this time around to win a tent.

If you buy at least three boxes ($10.50 or more, as they are $3.50 per box), and you live/work in the Austin metro area, my daughter and I will deliver them to you at your home or office (your choice).  

As a longtime salesperson, I am of the opinion that this could help Aleah to hone her burgeoning sales skills.  If you're nice, we might even hang out awhile.  :)  If you live outside of Austin, keep reading below.  

By the way, I already know what you're asking yourself.  YES!  They are still just as delicious as you remember them.  In fact, you might be doing my waistline a service by getting them out of my house.  They are really, really good, and I don't want to gain back any of the 56 pounds I lost this past year.  

if you want to support our cookie sales efforts, but you are:

• worried about your diet
• too far away, OR
• a crazy person who doesn't like the taste of the cookies

I have another idea for you.

It's called "Operation Cookie Drop". Basically, you donate $3.50 for each box of cookies, and they will be delivered to our troops overseas.

Cool, huh?

I have already bought and consumed cookies myself, but I think I may just go ahead and donate some extra money for this very special cause.

Here are a handful of benefits:

• You can keep your girlish (or boyish) figure intact
• You are directly helping our troops
• You are benefitting the Girl Scouts
• I will like you even more than I already do

Perhaps best of all, the donation is tax deductible!

In an effort to make it easier, you can pay via PayPal (any amount in $3.50 increments) by sending the money to our account at jasonpam@swbell.net. We will then write a check for the total and provide a receipt for your tax records if you like.

If you would like to pay by check (minimum donation of $14), you can make it out to "GSCTX" or "Girl Scouts of Central Texas" and mail it to my office at 3636 Executive Center Drive, #210, Austin, TX 78731. 

Help me demonstrate the power of social media and blogging.  :)  They also make great gifts. 

Feel free to re-blog or spread the word in any way you prefer.  

Thanks!

Having lived in the Austin area since 1988, I'm not surprised when I see our city making national "most desirable" or "best" lists, and a recent list from Walletpop.com is no exception. 

On the list entitled, "10 Best Places to Buy a Home", Austin placed at #1 overall, garnering "Best All-Around City" honors. 

Although we've experienced a tougher economy in recent years, Austin has weathered the storm quite well compared with most cities and local markets around the country, and for that I'm thankful.  Since we've all been inundated with negative messages from the media about the "national housing market" (which is a myth - all markets are local and some are even hyperlocal), I feel like part of my job is to educate Austin -area residents about how good things really are here in this area.

More praise about Austin from the Walletpop.com article:

Texas' capital and a great college town, Austin is beautiful and the 12th-most-affordable American metro area. Job growth from 2000 to 2010 was 14.1%, according to Trulia; unemployment currently is 7.1%, compared with 9.8% nationwide. The city's population is growing too. These positive indicators are expected to continue in the coming decade. Fortune 500 companies abound here; it's home to more than 2,000 tech companies. Home prices are reasonable for the $73,747 median family income and let's face it, nobody does BBQ better than Texas.

To read the entire article, visit http://www.walletpop.com/2010/12/31/10-best-places-to-buy-a-home-in-2011/.

Photo credit: JDN via Flickr (Creative Commons 2.0)

If you're thinking of buying or selling a home in the Austin, Texas area, or if you have any questions, please feel free to call me anytime at 512-796-7653 (cell) or email me at jason@austintexashomes.com.  You can also visit our Austin real estate website at http://www.austintexashomes.com.  Thanks!

I've received this question many times from buyer clients that I'm helping, most recently in an email, so I thought it would be a good idea to cover this in a post. Whenever I write up an offer for a home, there are dozens of questions that come up during the process before we even submit the paperwork to the listing agent.  This particular question typically arises after we've parted ways and everything is signed.

So, is it a good idea to place a "fuse" on your offer, forcing a quick response? 

In my humble opinion, it's rarely necessary to do so, although I can understand arguments in favor of this strategy. 

My normal response is this: You certainly can restrict the timing for acceptance by forcing the seller to respond quickly (e.g. "Seller to respond by 5pm Tuesday, January 25th, or this offer is void."), but I feel that it comes across as pushy in most cases, since a typical seller is probably sufficiently motivated to respond within 24 hours regardless, unless they're traveling or experiencing a crisis of some sort.

With that in mind, give some thought to the message it sends when you opt to place a deadline on any offer.  It might set the wrong tone during negotiations and during the entire process, depending on the personality of the seller.  It also could come across as a little desperate, or weaken the offer and your leverage.  Patience is your friend when it comes to negotiating.

There are really only two instances which immediately come to mind under which I would counsel someone to use a deadline approach:

• You're pretty sure that there's another offer on its way (or more than one)
• You have very limited time to choose a home, and there's a solid backup house in mind that you don't want to lose while you wait for a response

I suppose you could add a third category here if the listing agent is notoriously slow to present offers based on your agent's prior experience, but I've only had that happen once to me in 14 years of full-time sales.

The longest I've ever had to wait for an initial response was 3+ days, which was maddening for my clients, frankly, but also exceptionally rare overall. 

Since the other question I hear often is, "When do you think we'll hear something about the offer?", I should probably address that here as well.  As a guideline, if I send an offer in the morning, it's possible to hear something the same day, if the agent is able to get in touch and present it quickly.  If I present an offer to the listing agent during evening hours, we'll probably hear back sometime the next day, either with a response or with clarification questions, etc.  If it's a weekend, I typically tell my clients to expect to hear back by Monday.

I hope this helps!  Let me know if you're looking to buy or sell a home anywhere in the Austin metro area.  I would love the chance to help you find the right place.

Thanks for reading!

Photo Credit: http://www.flickr.com/photos/jon_knox/4721752902

Tomorrow, I hope you can join us live and in the chat room for Social Media Edge Radio (because the cool kids are always in the chat room!). Tuesday, January 25, at noon Eastern, we have the pleasure of speaking with one of the cream of the crop in Social Media Marketing.

We're also making a special announcement about a new series of awards with some actual value.  Ken Cook and I have proclaimed 2011 to be "The Year of Snark" so you can bet any award given will be thoroughly investigated. We, the snarky, are amazed at the volume of worthless awards based on either self-glorification or simple popularity and we're setting out to do something about it!

Our very special guest tomorrow is Christine Perkett (@missusP on Twitter). 

Christine founded PerkettPR in 1998. She has been named one of the ‘Top 25 Authorities Moving PR Forward' in a recent industry study (http://bit.ly/2DfKku), and consistently recognized as one of the most social media-savvy CEOs - currently ranked as one of the 100 Most Powerful Women on Twitter (by Hubspot: http://bit.ly/9OUzJ2), a "Top Influential Woman in Tech on Twitter" (by Google's Don Dodge, alongside such greats as Marissa Mayer, WSJ's Kara Swisher, and more), and featured two consecutive years in BusinessWeek's Social Media Special Report (keeping company of notable CEOs from Zappos, Virgin, Digg, HDNet, Mint and more: http://bit.ly/peioG).

Christine was also awarded "Best Communications, IR or PR Executive" by the American Business Awards and nominated as an Agency Executive of the Year finalist from PRNews.

PerkettPR, Inc., founded in 1998, creates effective public relations, interactive digital services and social marketing campaigns and content for technology, healthcare, business and consumer companies worldwide. Clients include Conduit, Litle & Co., LocationLabs, Mindjet, Northeastern University College of Business, Photobucket, Tumri and many more.

Tune in live here: http://blogtalkradio.com/jckc 

Don't miss this one, but if you do, check out the archive recording at http://socialmediaedge.com/itunes.