You know about financing, interest charges, and fitting a house payment into your budget.

The fun part is shopping for your new home.

HOW WOULD YOU LIKE TO GO ABOUT IT?

• Drive around neighborhoods you like looking for sale signs?
• Use real estate Web sites to narrow your search?
• Check foreclosures in your area for great deals?
• Hiring a Realtor to guide you through the process?

Any and all of these approaches would serve you well. I’d go so far as to recommend using all of them simultaneously to get the most thorough canvass of your market.

Keep these in mind as you search:

• Think about the future: Will your family grow while you’re living in the new home. Try to think about how you’ll be using the home in five years. Will you need more bedrooms, a home office, a guest room, a three-car garage?
• Pretend you’re the seller: Eventually, you will likely decide to sell the home you’re thinking now about buying. How hard would that be? If there’s a wacky addition on the back of the house that you’re not crazy about but can live with, future buyers may not be so forgiving.
• Talk to would-be neighbors: Someone who has lived in the neighborhood a few years has insight even a Realtor may not have. Your would-be neighbors will probably share the ups and downs of the area if asked.
• Don’t expect HGTV standards: Do you watch “Flip or Flop” or “House Hunters?” Not all houses on the market, depending on your price range, will live up to those standards. If glistening appliances, quartz countertops, and double vanities get your blood pumping, you may want to lean toward new construction.

Should You Get a Real Estate Agent?

Realtors make a living by handling real estate transactions. They are experts on the nuances of their markets. Yet we routinely meet buyers who aren’t all that eager to hire a Realtor. Often, they cite the agent’s commission as an unnecessary fee since they can search up houses online for free. Give this some serious thought before deciding, though. A good agent can be your advocate throughout the buying process, protecting you from issues you may not even be aware of yet. And about that commission: If you’re looking at listed properties (not for sale by owner properties), the seller has an agent who will be earning a commission from what you spend.

When you also have an agent, the two agents will split the same commission. So, you’re going to be paying the same commission anyway. Why not let half of it go to someone who has your back instead of the seller’s?

Offers, Counteroffers, and Contracts

Every real estate market can be different, and your local market will also fluctuate from year to year. Sometimes the market favors buyers; other times it’s sellers who have the most influence over transactions. If you’re shopping for a home in a seller’s market, you may face some fierce competition from other buyers. So how can you make an offer that will get the seller’s attention amidst a flurry of other offers?

OTHER THAN MAKING A CASH OFFER EXCEEDING THE ASKING PRICE, WHICH IS HARD TO BEAT, YOU COULD:

• Have a mortgage pre-approval: The seller will know you’re serious if you already have your financing in order.
• Make a reasonable offer: You may enjoy some back and forth in your negotiations, but don’t start so low that the seller doesn’t take your offer seriously. If the asking price is $200,000, don’t start with $120,000 unless you think the house really is worth $120,000 or so.
• Be flexible on closing costs: In a buyer’s market you can get away with drawing the line against paying any closing costs. If it’s a seller’s market, though, a buyer will likely have to take on some, if not all, closing costs.
• Mix and match: If closing costs are a big issue and you really need the seller to pay them, make a higher offer on the house itself. Or, if you’re making a lower offer, consider taking on the closing costs as a way to sweeten the deal. Again, if it’s a buyer’s market, ask for the moon.

Your Realtor can guide you here by providing specifics about your market. He or she may know in advance how the seller’s agent would be inclined to respond to your offer.

A Counteroffer is a Good Thing

When you’ve made an offer and the seller counters with a higher offer, you know you’ve gotten the seller’s attention. Let the negotiations begin. Discuss with your Realtor whether you should accept the counter offer or make another offer of your own. Once you and the seller agree on terms, it’s time to enter a contract.

Going Under Contract

With a contract, you’re agreeing to buy the house under the agreed-upon terms (from the offer) as long as certain conditions remain true. Likewise, the seller is agreeing not to sell to anyone else while under contract with you. The seller or her agent may ask for earnest and option money. This is not a down payment on your loan, but it will go toward the purchase of the home assuming you close.

The earnest is usually 1% of the total home price and is refundable if you decide to not move forward during option, and option can vary from $100 to $1,000 and is non-refundable — it shows you’re serious about the home purchase and buys you the time to take the home off market and do an inspection to make sure the home checks out up to your standards before you fully commit.

If something happens and you do not buy the house, make sure you ask for the earnest money back. Option is non-refundable so don’t put a super high option unless you need to due to competition or unless you have a very high certainty it is the perfect home for you no matter what.

Negotiations Continue While Under Contract

While under contract and in option, you’ll need to hire an independent home inspector to explore every corner of the house, from the pillars to the roof vents. Your Realtor, of course, may suggest some home inspectors, but consider finding one for yourself. This is your long-term investment. You stand to gain or lose money. So you’ll want to know for sure that the inspector is looking out for you.

About your home inspection

Read your home inspection report thoroughly. If you’re buying an older home, don’t be surprised if the inspector uncovers some minor problems with the plumbing or the insulation or the duct work. Issues like those shouldn’t prevent you from buying the house, but you may want to consider asking the seller for a concession. You could ask for a $500 discount on the home to fix a problem in that price range, for example.

Or you could ask the seller to fix the problems before closing.

The inspector may also find serious flaws with the home. If the inspector questions the structural integrity of the home, either because of foundation problems or some kind of extensive rot, it may be time to seriously consider moving on to a different property.

The same is true for safety issues. Old wiring or an ancient or poorly installed heating system could spell disaster down the road. Yes, such problems can be fixed, but the cost and the amount of work may prove too big a hassle if you have other home options on your list.

As you can tell, you’ll be plenty busy during these few of weeks between agreeing to an offer and closing on your home. Don’t forget, you’ll also be packing and preparing to move.

And, there’s still work to do at the bank.

Applying for Your Mortgage Loan

Wait a minute. Didn’t we already talk about mortgage loans? Yes, but only for a pre-approval. When you have a house under contract and you fully intend to see the purchase through, you’ll need to make the loan application official. With your pre-approval, the bank would have made some assumptions. Specifically, it assumed the information you shared about your income, your employment, your bank balances, and such, was true.

Now it’s time to prove it.

The lender will ask for documentation to support your application. Expect to share tax forms and recent checking and savings account statements. Don’t be surprised if the lender calls your place of employment. It may feel as though nothing is sacred by the time you finish the application.

Don’t sweat it, though.

 As long as your fiscal house is in order and you can document it, you should be fine.As you apply, it’s time to decide about your loan’s terms. Can you afford a 12-year or a 15-year mortgage? Should you play it safe with a 30-year loan? (Scroll up to the types of mortgage session for a refresher on this subject if you need it.)

YOUR LENDER WILL BE DOING SOME WORK OF ITS OWN DURING THIS TIME THAT YOU’LL WANT TO BE AWARE OF:

• An appraisal: The bank will hire someone to appraise the value of the property you’re buying. If the loan amount exceeds the appraised value of the property, the bank could pull the plug on your loan. Why? The bank is thinking ahead. If it repossessed the property because you failed to pay, the bank would become the property’s seller, and it would need the sale to re-pay your defaulted loan. That’d be harder to do if it loaned you more than the value of the home. (This protects you as well, especially if you needed to re-sell the property within the first few years of the loan.)
• A title search: The lender wants to know for sure whether the seller owns the house and has the right to sell it to you. To find out, it will hire someone to research the history of the home you’re buying. The search should reveal names of previous owners, dates of ownership, prices paid during previous transactions, etc. The result of this search can be interesting, especially if you’re buying an older home.

If all this, along with your financial documentation, checks out, you should be good to go. The lender will issue a loan commitment, which means you’ve got the financial backing to make your homeownership dream come true.

Preparing for Your Closing Date

Your contract should include a closing date, which may be scheduled a month, or even longer, into the contract period.

Until after the closing, either party could back out of the deal, so people tend to think of closings as stressful.

In reality, you should know days or even weeks before your closing date whether everything will happen as planned.

Call a Lawyer

Your real estate attorney (your Realtor can recommend one or you can hire an attorney yourself) should be experienced and have a knowledgeable staff. When you’re in good legal hands, even the most complicated parts of your transaction will seem easy. Your attorney will find out about any past due taxes on the property and make sure you’re not held responsible for property taxes accrued before closing. Your attorney will do a separate title search and be able to show you any encroachments on your new property.

If a neighbor, for example, has placed a storage building across the property line, you’ll find out.

You’ll hand over your down payment if you haven’t already, and the money from your mortgage lender.

Then, you’ll sign document after document after document until they all begin to look the same.

You Have More Work, Too

Before the closing, you still have a few things to take care of on your own:

• Homeowners insurance: You will need a homeowners policy in place and ready to go into effect as soon as you make things official at the closing. Shop around for a policy that will meet your home’s precise needs. Your policy will have a big job to do: protecting your new investment from a wide variety of perils.
• Transferring utilities: If you’re renting, be sure to tell your landlord that you’re under contract on a home of your own. If possible, give yourself a week or two after closing before your lease ends so you can move your stuff without as much stress. And don’t forget to cancel the Internet, water, electricity, etc., at the old place.
• Hiring movers? Maybe you have a couple friends who own trucks? If you can afford it, though, professional movers can make life a lot easier. Be sure to read reviews on Trustpilot or Facebook before hiring a company. Try to call companies a couple weeks before moving day to get on a schedule, and look into the costs beforehand. You don’t want to be surprised by a $1,000 moving bill.

Opening an Escrow Account

Your closing attorney will most likely mention an escrow account for insurance and taxes. You don’t have to go this route, but many homeowners find it helpful.

Here’s how it works: Each time you make a house payment, part of your payment goes into a separate, escrow account.

The money builds up as the months pass, then when it’s time to pay your property taxes or the insurance premium, you have the money available.

Your lender will maintain the escrow account and even pay the tax and insurance bills.

Other than monitoring it once in a while, it doesn’t require much thought from you.

Is East Austin a good area to buy a home or investment property?

Yes, East Austin in Texas has experienced significant gentrification in recent years. Due to the continuing growth and improvements it is a good area to look for an investment or home that will continue to appreciate in value as the area continues to build.

Gentrification refers to the process of a neighborhood undergoing redevelopment and revitalization, often accompanied by an influx of wealthier residents, increased property values, and changes in the character of the area.

Historically, East Austin was predominantly a lower-income, culturally diverse neighborhood with a significant Hispanic and African American population. However, due to various factors such as urban renewal initiatives, increased interest in urban living, and the city’s overall growth, East Austin has seen substantial changes.

Gentrification in East Austin has resulted in the displacement of long-time residents and businesses, as rising property values and rental prices make it difficult for lower-income households to afford housing. As more affluent individuals and developers invest in the area, older homes are often renovated or replaced with higher-priced housing options, and new businesses catering to a different demographic may replace longstanding establishments.

The gentrification process has both positive and negative impacts. On one hand, it can bring investment, improved infrastructure, increased safety, and amenities to the neighborhood. Gentrification may also contribute to economic growth and attract new businesses, leading to job opportunities.

On the other hand, it can displace lower-income residents and disrupt established communities, leading to a loss of cultural heritage and social cohesion. Gentrification can also contribute to increased property taxes and cost of living, making it difficult for longtime residents to afford to stay in the area.

The effects of gentrification are complex and multifaceted, and opinions on its consequences vary. City governments and community organizations often work to implement policies and initiatives to mitigate the negative impacts of gentrification, such as providing affordable housing options and supporting local businesses.

It’s important to recognize that the process of gentrification is not unique to East Austin but has occurred in many cities across the United States. If you are considering living in or investing in East Austin, it is crucial to understand the ongoing changes in the neighborhood and their potential implications.

If you’re considering buying or selling a home in the East Austin area send us a note at hi@keepaustinweirdhomes.com and we are happy to offer a free home valuation or answer any questions about the buying or selling process.

• Off-Leash Parks: Austin has several off-leash dog parks where dogs can socialize, exercise, and play. Popular dog parks include Zilker Park, Red Bud Isle, Auditorium Shores, and Norwood Estate Dog Park.
  • 45 acres of the 350 acre Zilker park is a designated off leash area for dogs.
• Hiking Trails and Green Spaces: Austin is surrounded by natural beauty, including numerous hiking trails and green spaces that are dog-friendly. Places like Barton Creek Greenbelt, Lady Bird Lake Trail, and Emma Long Metropolitan Park provide opportunities for outdoor adventures with your canine companion.
  • Dogs can run free along the Turkey Creek Trail at Emma Long Metropolitan Park
• Pet-Friendly Businesses: Many businesses in Austin, including restaurants, cafes, and shops, are welcoming to dogs. Some establishments have outdoor seating areas where dogs are allowed, and some even offer special dog-friendly amenities such as water bowls or treats.
  • See a list of 54 dog-friendly Austin businesses here
• Dog-Friendly Events: Austin hosts various dog-focused events throughout the year. These events include dog festivals, charity walks, costume contests, and adoption drives. It’s a great way for dogs and their owners to socialize and have fun together.
  • Take a look at a list of upcoming Austin dog-friendly events
• Pet-Friendly Housing Options: Austin offers a range of pet-friendly housing options, including apartments, condos, and rental homes that welcome pets. Some communities even have specific amenities for pets, such as dog parks or pet washing stations.
• Dog-Friendly Culture: Austin’s overall culture and community are known for being welcoming and inclusive, extending to dogs as well. Many Austinites are proud pet owners and are generally friendly and accommodating toward dogs.

Of course some individual establishments have their own specific rules and restrictions regarding dogs, so it’s always a good idea to check beforehand. Additionally, responsible pet ownership, such as picking up after your dog and following leash laws, is crucial to maintain Austin’s dog-friendly reputation and ensure a positive experience for everyone.

To find a dog friendly lease or a dog-friendly neighborhood to live in with lots of dog parks, walking areas and dog-friendly outing areas, send us a message at hi@keepaustinweirdhomes.com and happy to help.

Akins High School was established in 2000. Since its founding, the school has evolved into a comprehensive high school that offers a wide range of academic programs and activities.

It is located in far south Austin, and has 6 learning communities: Arts & Humanities, Business & Leadership, Green Tech, New Tech, Social Services and T-STEM.

The school’s namesake, Dr. W. Charles Akins, helped his school and students to value diversity and to aim for high goals.

Academically, Akins High School offers a rigorous curriculum that prepares students for higher education and future career paths. The school offers a variety of Advanced Placement (AP) and honors courses, allowing students to challenge themselves academically and earn college credits. Additionally, Akins High School provides career and technical education programs, equipping students with practical skills and knowledge for various industries.

Extracurricular activities play a vital role in the Akins High School experience. The school has a strong athletics program, with teams competing in various sports and achieving notable accomplishments. The fine arts programs, including music, drama, and visual arts, offer students opportunities for creative expression and artistic development. A wide array of clubs and organizations cater to diverse interests, allowing students to explore their passions and build leadership skills.

Akins High School is committed to supporting students’ holistic well-being. The school provides comprehensive counseling and guidance services to help students navigate academic, social, and personal challenges. Special education programs and support services are available to ensure that every student receives the assistance they need to succeed. College and career readiness initiatives help students explore post-secondary options and plan for their future.

Beyond the campus, Akins High School actively engages with the surrounding community. The school collaborates with local organizations and businesses to provide students with real-world learning experiences and opportunities for community service. Akins High School values community involvement and encourages students to be active contributors to society.

Throughout its history, Akins High School has produced numerous success stories and notable alumni who have made significant contributions to various fields. The school takes pride in celebrating the achievements of its students, past and present, and continues to nurture their potential.

Looking ahead, Akins High School is dedicated to ongoing improvement and innovation. The school has plans for future projects and initiatives that aim to enhance the learning environment and provide students with the best possible educational experiences. Akins High School remains committed to preparing students for success in their academic, professional, and personal lives.