Texas real estate

The Woodlands average months of inventory for all list price ranges for the month of April is 6 months.

Here is the breakdown by List Price Range:

$100,000 – $200,000 3.3 months……………….. $601,000 – $700,000 6.3 months

$201,000 – $300,000 3.5 months……………….. $701,000 – $800,000 9.8 months

$301,000 – $400,000 5.2 months……………….. $801,000 – $900,000 8.3 months

$401,000 – $500,000 5.8 months……………….. $901,000 – $1 mil. 14.1 months

$501,000 – $600,000 7.4 months……………….. $1 mil. + 18.9 months

According to the National Association of Realtors(NAR) and our local Houston Association of Realtors(HAR) months of inventory is calculated by dividing the number of active listings by the average number of homes sold during the previous 12 months.

A number below 6 is defined as a seller’s market; meaning there are more buyers in the market than homes for sale. This results in higher list price to sale price ratios and creates an atmosphere for multiple offers on listings.

A number above 6 is defined as a buyer’s market; meaning more homes for sale than the number of buyers looking for a home. The result is a lower list price to sale price ratio and creates an atmosphere for continuous price reductions, incentive bonus to sales agent, etc.

As you noticed from the above explanations, the magic number is 6. The number 6 is defined by the experts as being a balanced market. This describes The Woodlands real estate market! If you view the three year Months-Of-Inventory chart, you will notice The Woodlands fits the balanced market definition.

Tim Welbes, co-president of The Woodlands Development Company, loves to compare two home appreciation slides during presentations to members of the community. The first chart is of a major city in California with annual appreciation rates that resemble the profile of the Canadian Rocky Mountains…..until 2009. Then the chart begins to resemble the depths of the Pacific Ocean! The next slide in his presentation resembles a profile of small gently rolling hills; this is The Woodlands annual appreciation rates(home values)!

With the assistance and guidance of a local Realtor, you can be comfortable buying a home in The Woodlands without concern about the Pacific Ocean effect!

By: Michele Flory

A Real Estate Purchase Agreement, also referred to as The Contract, is difficult enough for the real estate professional to master, let alone the average consumer. The consumer must become familiar with Contract Law, or employ an attorney who is well versed in the nuances of The Contract. Knowing why and what is included in a Real Estate Purchase Agreement will help insure the Buyer and Seller close on time and are confident about their decision making.

In most States, the prospective Buyer will make an offer through the vehicle of the Purchase Agreement. When the offer is accepted by the Seller, it is then a binding contract. All terms and conditions must be agreed to by the seller. If the seller sets other conditions, this is referred to as a counteroffer. Again, for the agreement to be binding, there must be a “meeting of the minds” or mutual assent.

The Real Estate Purchase Agreement must be in writing to be enforceable. Verbal additions or deletions to The Contract are not valid. If the Seller’s Agent tells you his client will help pay for a home warranty, it must be in writing, either in the contract or in an addendum, to be enforceable. The Buyer is without recourse if the Seller backs out of paying for the warranty.

Both parties to the contract must be named in the contract. They must be legally competent in the view of the law, so they are capable of making a legally binding promise. Most States have Statutes describing how old a buyer or seller must be to enter into a Real Estate Contract. They must be of sound mind, or must have given a friend or family member a Power of Attorney to make and carry out decisions.

The house or property must be identified in The Contract. The full legal description must be included. You cannot state that you want to buy Aunt Phyllis’ house in the Marina district. In most States, the physical address as well as the Parcel Number must be included. Many legal descriptions can be quite confusing, so you must be certain as to what information you include in the Purchase Agreement.

The purchase price must be stipulated in the offer. An earnest money deposit is also included with the offer to purchase real estate. This will provide evidence of the buyer’s intention to carry out the terms of the contract in good faith. It will discourage the buyer from defaulting, and may compensate the seller for taking the property off the market.

Dates are essential to the real estate contract. The dates of a contract help to insure both the buyer and seller perform as they agreed to. A Close of Escrow date will inform the Title company when all provisions of the contract should be satisfied. The executed date, the day the contract became binding, will start the escrow period. The Terms of Acceptance date is the period of time the buyer gives the seller to respond to the offer. Other important dates are the number of due diligence days and remedy periods pertaining to inspection/repair responses.

The Purchase Agreement must be signed by both parties to be enforceable. Again, the signees must be of sound mind and of legal age. The death or incapacity of a signee may make the contract void and unenforceable. A contract that is void was never a contract in the eyes of the law.

There are many facets to the Real Estate Purchase Agreement. This article certainly does not cover every important aspect of what it takes for a contract to be binding. It absolutely is important for the buyer or seller to understand the contract they are about to sign. It you are still unsure about contents of the contract after conferring with your Agent, never hesitate to consult with your attorney.

By: Jeffrey Austin

It is 7:00 in the morning and it’s freezing outside, but I’m at my Wisconsin lake house and the view is beautiful. As I gaze out the window all I see is white; even the lake has a white cast to it because it’s frozen. For a split second I wish I had my ice skates with me. Then intelligence kicks in and I realize the ice probably isn’t that thick and I’d just fall through and be even colder!

So, I switch my gaze to the warm fire glowing in the fireplace and a big idea hits me. After pondering how to write an article for my newsletter readers that will knock their socks off, it comes to me. If I could tell you how to win more listings without fail, it would increase your commissions and you’d be delighted (and maybe even begin to really look forward to my newsletter). This is a win-win idea.

Therefore, I have outlined 27 Steps to a Winning Commercial Real Estate Sales Presentation. Now you may feel many of these are small or minor ideas, but none-the-less they are all still an important part of the process. Here goes:

Do your research – identify the prospect’s primary problem (no problem, no need for the appointment) and be prepared with a solution. Just because a prospect has agreed to meet with you doesn’t guarantee there is a need to fill. Be clear there is a valid problem for you to solve before setting up a meeting. When you are setting up a specific time to present, be clear you need ALL of the key decision makers present. This avoids having to re-present or having the details conveyed incorrectly in your absence. Ask enough questions ahead of time to be certain you can prepare for the meeting appropriately. Google the company and each person planning to attend the meeting or of importance to the company. Hopefully this will cut out any surprises, as well as potentially impress the prospect. Dress professionally; first impressions do matter. Be a few minutes early; this allows you to get acclimated and gather your thoughts before you begin. If you arrive on time or even late, you are forced to go directly into presentation mode. Smile during the presentation – this conveys warmth, trust, comfort, enjoyment and a pleasant disposition in general. Once you’ve arrived, re-establish the upfront contract. State why you are meeting, what you hope to accomplish, and how long you plan to spend together. Verify that everyone is on the same page; this is often overlooked. Be prepared and have an agenda. A lack of preparation is an automatic deal killer. Be sure your presentation is professional and error free. However, don’t get stuck in perfection. Good enough is good enough. Make a presentation binder to leave behind – this also helps you to prepare. Your presentation should include: A summary of the problem and your suggested solution Maps, demographics, and photos Your suggested marketing campaign (This is a place to shine!) Competition Comps Expectations (Most brokers leave this out, but if you are clear with your expectations the relationship will go more smoothly.) A list of potential challenges Letters of recommendation or testimonials A sample list of users (when appropriate) Success stories from other clients who have experienced similar problems. Describe the problem, the action taken, and the successful result. Timeline Your contact information, as well as information on any other team member (including admin). Listing agreement


Don’t focus on too many points when presenting orally; pick a few points and focus on them. After all, you are leaving behind a presentation book for their review.LISTEN – LISTEN – LISTEN!!!If you get stuck, take a deep breath and ask a question. This will give you a few moments to gather your thoughts, check your notes, and re-focus your presentation.ALWAYS USE NOTE CARDS. Zig Zigler practiced before every single presentation, even though he had given the same presentation hundreds of times.Allow for and even invite interaction during the presentation. Some presenters don’t like interaction. However, it would be a shame to deliver the entire “show” only to discover you’re off track and missed the boat, especially since you could have switched gears if you had known (based on the dialogue during an interactive presentation ). Client interaction will also keep them from being bored.Before you present, prepare a checklist of items to be covered (use an index card for this). Then periodically check it.Admit ignorance. If you don’t know the answer, don’t fudge it. Just graciously inform the prospect(s) you will get the answer and forward it to them immediately.Ask who your competition is; in fact praise them when possible.Be Truthful at all times. People buy from those they know, like, and trust. Trust is key for a lasting and successful business relationship.Convey knowledge, enthusiasm, expertise, a willingness to serve, and finally – the ability to deliver the best solution for the client in the least amount of time and with the best price.Before launching into a close, understand the approval process. Review who’s involved and ask what the timeline for decision-making is.When closing — recap, be concise and confident, and know you offer the best solution. Don’t be afraid to close by asking for a decision on the spot. ASK FOR THE BUSINESS. Too many brokers make this mistake. If you don’t do this, your competitors will.Don’t forget to have a copy of your listing agreement prepared ahead of time and available. Present the listing agreement and, if possible, get a signature.Provide a specific window of time that you are committed to being available in the event any questions arise, and then tell the client exactly how to reach you.Don’t oversell.Finally, FOLLOW UP!


Good luck.

By: Cindy Saxman Spivack

While it is a fact that Hurricane Ike was a catastrophe of monumental proportions, it does mean one undeniable fact for the greater Galveston area and that is that the recession has now officially ended. Construction crews and redevelopment funds are now rushing into the area and the result is an economic boom in the Galveston real estate market of unprecedented proportions.

Different From New Orleans

The reason is that unlike New Orleans, the basic fundamentals in the local business community remain sound. So what does this mean for the independent speculator who is looking to make a living repairing and flipping distressed properties?

A Bright Economic Forecast

It means that its pick and choose. For one thing, in the months prior to the hurricane, the Galveston real estate market was already in a solid rebound. The port of Galveston isn’t going anywhere and with the economy diversifying in the way that it has been in recent years the economic forecast for the greater Galveston area remains bright.

Loans on Distressed Properties

However; before you head down to Galveston to stake your claim in this new regional economic boom, you must be aware of a few facts. For one thing, loans on distressed properties are more difficult to secure than a loan on a property that is intact. This means that good credit counts more than it has in years past.

A Spike in Labor Costs

Also, be prepared for an increase in labor costs and contractors that are booked solid with work. This means that like it or not, you will have to take a more hands on role in a property renovation than you would otherwise have to in other real estate market areas that you may be accustomed to.

By: Daniel Mummski

As home prices continue to fall around the nation, Austin has finally hit the bottom of its slump. The mortgage crisis has lowered home values nationwide by over 20% in the last year, and they continue to fall. New home purchases are down, foreclosure rates are up, and overall home sales are down as well.

But, this isn’t the case in Austin. Like the rest of the nation, we were hit by the housing crisis. Home prices here fell by more than 10%. Not only did they fall, but they stayed low for a great many number of months.

It may be early to be optimistic, but all accounts show that this dip in Austin real estate is over. The average home price and the median home price in Austin have both risen back to levels that they were at a year ago, and by all accounts, they look to be continuing to rise.

The decline in home prices here happened quickly at first, like it did everywhere else in the country. But, unlike the rest of the nation, after the first year, they were already starting to bottom out. The average home price did continue to fall, but at a much slower pace than the pace of the rest off the national real estate market.

For the majority of 2008, Austin home prices fell less than 5% overall, and started to begin the climb back up by the end of the year. But, it takes more than a month or two of increase to be able to declare that the worst is behind us.

But, for the entirety of this year, both the average and median home values have risen in Austin, and they have done so both dramatically and consistently.

Since January, the median home price has increased by almost 13,000 dollars to a point that it hasn’t been at since March of last year. The average home price has increased over 12,000 dollars in that same amount of time as well. That’s a 7 percent and 5 percent increase, respectively.

This is certainly not enough to say that we are out of the woods yet. There are strict mortgage guidelines coming in January that threaten to hinder home purchases even further, and our overall economy is still nowhere close to what it needs to be. Unemployment last month topped out at over 9% last month, the highest it has been in decades. As successful as Austin has been at insulating itself from the crises that the rest of the nation has faced, we are still not at the point that we can safely assume it all to be over.

But, these recent changes do bring to light the prowess of the Austin real estate market. In a time where the national average home price has dropped to below 180,000 dollars for the first time in a decade, ours is holding strong at 243,000 dollars. At a time when the rest of the nation’s home values are declining, ours are still on the rise. Especially as compared with the rest of the nation, it is a good time to live in Austin.

By: R Chandler Smith

For years and years (“good ole days”) buying a home through a real estate agent was similar to going to Sears to buy a stove: you were not legally represented by the agent with whom you were working. Since the Seller usually paid the commission and the listing broker shared that commission with the selling broker, the buyer’s “agent” was in fact a subagent of the Seller. In the 90′s a class action law suit (dual agency) involving one of the largest brokerage firms in the country resulted in a settlement rumored to be a bunch of money. Agency immediately became of great interest and concern for both real estate companies looking to avoid similar problems and state governments.

Today all states have laws defining real estate agency: buyer agency, seller agency, and dual agency, although some still allow for “facilitators,” where no agency has been established. Agency laws define the relationship between the agent and his client, or principle, and the duties of each. Illinois has, by statute, established the duties of the agent to the clients: care, obedience, accounting, loyalty, confidentiality, and disclosure (remember the Boy Scout oath?). The simple rule is that, excepting unlawful demands, the client’s interest must be placed above the agent’s interest. The client would be obligated to treat the agent honestly, cooperate toward fulfilling the goal for which the agency was formed, and to compensate the agent as agreed.

Establishing agency requires competent parties, a lawful purpose, and agreement between the parties. An agency can be express (written or oral, but written is pretty important) or implied (by words or actions) and once established must be taken very seriously. Obviously if an agent has discussed the job, duties, objectives, compensation, etc. with a prospective client or customer, and they have agreed to work together, an agency relationship has been created. Some acts can be performed without creating an agency: things like answering questions without giving advice. Just answering questions about a home, for instance at an open house, is considered “ministerial” and does not create agency: the other party is considered a consumer: a potential client. A problem can arise if the agent begins to give the consumer advice or moves beyond providing information about a specific home. The Illinois law says, “Licensees shall be considered to be representing the consumer they are working with …,” so an unintended agency relationship may be created.

While most agents will represent either a buyer or seller in a transaction, Illinois license law allows Dual Agency in which the same agent “represents” both buyer and seller. As an example, if an agent had a listed property (a seller client) and a buyer for whom the listing seemed perfect, with the informed written consent of both clients, the agent could show and perhaps negotiate a contract between his/her two clients. It’s difficult to understand the term Dual Agency in this transaction: by definition, agency demands working in the best interest of the client and the two clients have opposing interests (purchase price). The agent in this case more intermediates than advocates. The potential for claims of unfair representation are much greater in this type of transaction and utmost care must be taken to insure that both parties are fully informed and agree before any showing takes place. (Undisclosed dual agency is the basis for the law suit mentioned in the first paragraph.) While most agents would like to receive both ends of the commission, it is probably safer from a legal perspective and certainly better service to the client, to avoid dual agency. Illinois uses the “designated agent” approach to allow a Broker to appoint one agent to represent a Seller and another to represent a Buyer in the same transaction without creating a dual agency within the same brokerage.

When beginning to work with a client, get the relationship in writing (if at all possible). It is mandatory for a listing, but sometimes buyers are reticent to sign agency agreements. That may be because the agreement is not properly explained. The Illinois buyer agency forms are pretty non-threatening if explained correctly. Always disclose your position and any information (other than confidential) you have about the property or the agency relationship. If a potential buyer at an open house expresses interest in the property, for example, make certain to disclose that you represent the Seller and that the “buyer” should not rely on your assistance for other than ministerial acts.

Disclosure, agreements in writing, and making sure the client’s interest always comes first are the main points, but training and study of agency law is extremely important.
The State of Texas, for instance, requires 30 hours of Agency in its pre-license course.
Illinois includes it in core curriculum for continuing education. The Illinois License Act of 2000 (Article 15) lays it out in detail and can be found most easily at http://law.justia.com/illinois/codes/chapter24/23835.html (it took me quite a while to find it at the State of Illinois General Assembly site and the URL runs off the page).

By: Mike Cromie

The Climate

Yes, Austin gets hot in the summer. It is Texas, after all. But there’s usually a nice breeze blowing (especially near the lake), and there’s not as much humidity as the coastal cities like Houston. The rest of the year is milder than many places in the country. Austin winters are moderate by most standards, with snow being a rarity.

The Culture

Austin has a rich culture that blends Mexican heritage, cowboy roots, state politicians, and a healthy dose of urban hip. “Keep Austin Weird” is the unofficial slogan, and you’ll see it emblazoned on everything from bumper stickers to t-shirts. Austin takes great pride in being … well, Austin.

The Outdoors

Like to go backpacking? Cycling? Canoeing? Water skiing? You can do all of that in a day around the Austin area. From the lakes to the trails, Austin has an outdoor scene that’s hard to beat.

The Music

They don’t call Austin “The Live Music Capital of the World” for nothing. The city boasts a vast array of musical venues offering everything from jazz to country to rock. Austin City Limits is filmed here, and there are musical festivals throughout the year.

The Bats

The Congress Avenue bridge in downtown Austin, Texas is home to North America’s largest urban colony of Mexican free-tails bats. Experts estimate the colony includes some 1.5 million bats! The bats began immigrating en masse around 1980, and after a brief period of public fear, they’ve become another Austin institution. They even have their own statue right on Congress Avenue. People come from all around to see the bats pour out of the bridge at dusk.

The Housing Costs

There’s a new program on HGTV called “What You Get for the Money.” It compares housing costs from different cities to show what you get for the money. Austin is regularly featured on the show, because housing dollars go a long way here (at the time of this writing). For information on new homes in Austin, see the note at the end of this article.

The Roads (Soon)

Massive highway projects are underway, so the traffic situation around Austin will soon improve dramatically. Austin’s population exploded during the “tech boom” a few years back, declined a bit during the subsequent “tech bust,” and is once more on the rise. But while the population has grown considerably, the highway infrastructure has mostly remained static.

As a result, rush hour can be quite an ordeal if you’re heading into the city. But not to worry. Austin currently has one of the largest highway expansion projects of any state in the country. It’s a growing pain, but in the near future it will be behind us!

* More info on buying a home in Austin.

By: BR Cornett

This is an interesting question to ask a group of property agents. Exactly what makes you better than the other real estate agents in your area?

Just then wait for the confusing and generic answers you get. This is what most brokers and agents will say:

We have great property knowledge. We have been a local agent for 100 years. We have the best people in the industry. We know how to market your property. We will get you the best price. We will pay for your advertising costs. We charge a lower commission. We have done all the deals around here. We communicate well and give you feedback all the time. We really know what we are doing. We are the best at what we do. We specialize in just this type of property.

The list goes on. It sounds familiar doesn’t it? Whilst these answers may seem important to the agent from a client perspective, the reality is that the client only takes these issues into account from a cursory level. The real choice of agent or broker is made on ‘a level of trust’, and only the client can make that assessment.

This says that you have to be the ‘real deal’, and that the client trusts you to be so. So what should you do here? Lift your ‘trust equation’ in the eyes of the client. Set yourself on a path to personally improve your skills as an agent in every relevant way.

When you focus on yourself and your real skills as an individual agent, and you do so in the following way, only then will you see the listing results lift above that of the competition.

Inspecting property with a real vision for the things that matter Listing property with great questions and attention to detail Negotiating in property from a position of fairness to the client Communicating in property with professional skill and relevance Understanding the property type from all angles Marketing in property using all the modern tools and tactics Tap into the target market for the property every time

So what is the story here? Your success as a broker or real estate agent is very much a personal thing and is driven from personal skills. You have a choice here; it can take you years to get to the level of authority and skill in these categories, or you can start lifting your skills today by dedicated daily practice.

When you stand ‘head and shoulders’ above the other agents in your local area from these simple levels of skill assessment, then you will be trusted by the client and your prospects to do the best for them. Athletes do the daily practice, so why shouldn’t a real estate agent or broker?

Be the ‘agent of choice’, the chances of more business await you. An agent of real skill is far better than an agent that thinks they are! The clients know that.

By: John Highman