Georgetown, Texas Real Estate Blog      Your Host: Edward Lui

With the type of real estate market we’re in right now, many of us are looking for GREAT DEALS…buying opportunities that come around just once in a lifetime.

And if we can’t find the great deals, we think we can create them with a wonderful thing called the “lowball offer.”  Now, technically there is no real definition of what constitutes a lowball offer, except that it’s low ofcourse.  In the market that I’m used to working in (Greater Austin), anything more than 10% off a reasonable list price is considered a lowball offer.  I say “reasonable list price” because there are plenty of agents who list their homes way to high, just to get the listing, and an offer of 10% off list price would actually put the home at market value!

Well, the question that you have to ask is:  Is it worthwhile for a buyer to pursue this strategy for their next home or investment?

I received an email from a client regarding this very thing and I wanted to share my response with my readers:

I know this sounds bad…but given the market conditions and how many houses seem to be going up I want to buy something for what I consider a steal…I am sure there may be buyers in front of me but I figure what the heck I might as well try. We really are happy renting as we will be moving in 2 years for sure into Austin and will turn it into a rental property or sell it. I guess I would be willing to lob bids in on properties in the $125k area for sellers that are desperate. Tell me if I am wrong but, from what I have read, I think that should be doable if I am patient, and like I said I am buying for the bargain, not b/c we particularly need or want a house in Gtown. Your thoughts are appreciated! – JW

Dear JW –

Hmmm, you bring up some interesting points.

You’re not the only one wanting to snag a steal…I do too…in any market!  However, there is a reason why I, as a guy involved full time in real estate, have never gotten a good as a deal as you’re wanting to get through the lowball method even though I own 5 homes:

1.  I’m not savvy enough
2.  I don’t have the patience
3.  I haven’t been in the right place at the right time
4.  I never offered anything that lowball and it got accepted.

I’d say it is a combination of maybe all 4 of those reasons to some degree.  However, my goal is to own homes, not make offers, so eventually I need to be able to use the resources I have (time, money, patience, savviness – i know i didn’t spell that right), however limited they may be, and buy something.  Not because I need to, but because I want to.  For me, it’s better to own 5 pretty good deals, then 1 super great deal.

I don’t know how productive it would be for me to make the 50 offers for you just to get 1 accepted…..especially if I’m not willing to do it for myself! That is a full time job…and I already have one.  In my early (read: desperate) years of real estate when I had time to twiddle my thumbs, I helped a lady do this and we made a good handful of offers….in the end, all I did was spend my time and money and she never bought a home. I told myself that in the future I would never do that again.  If somebody insisted that I represent them on making lowball offers on a multitude of properties, I could only justify it from a business standpoint if I charged my client for every offer made.

If you’re trying to get a home for $125K and it’s worth $150k, why would the owner lose $25k to you when they can just lower the asking price to $135k (10% below market value!) and still sell it quickly and for $10k over what you’re offering?  What you’re trying to do can and has been done….but I haven’t personally been able to be successful with it.  Believe me, I’ve tried.

BOTTOM LINE: Value is not determined by how much of a discount you can get off a home.  To many lowballers think that if they can get a huge discount off the home, they can brag to their friend’s “I’m da man!” yet really have no idea of the true value of what they bought.  I would much rather determine the value of a home and purchase it at a great price rather then feel the need to have to lowball everything in sight.  I guess what I’m saying is that you don’t have to lowball (offer a ridiculously low amount) a home in order to get a great deal.  Real estate investing is determined by the end result…how many homes you own is more important than how many offers you’ve made. Case in point:

On the market today is a home on 1125 Boxwood Loop in the city of Georgetown, Texas.  It’s listed for $157,500 and is 1953 SF.  If you are an investor or homeowner, I can help you own this home for probably around $150,000.  Is that a lowball offer?  No.  Is it a great price?  Well, let’s just say that it will be the second cheapest home to sell in Georgetown Village since January of 2005 (according to the MLS).  I’d say that’s a great deal!  Interested?  Call me before I buy it for myself.

Here’s a cute home in my neighborhood that has 4 bedrooms and is listed at $175,000.

The architecture has the same characteristics of those downtown historic homes like big front porches, large dormer windows and siding/stone exterior. However, you don’t have to worry about updating the plumbing or leveling the foundation because, unlike those old historic homes, this one is built in 2004.  I like these homes in Georgetown Village because it combines the best of both worlds:  Old home look without the old home maintenance.

Here are the  pictures:

Video of home can be found here:

More information on the home can be found here:

Rosedale-flyer

rosedale_survey

rosedale_disclosure

Looking for information on Georgetown Texas Homes For Sale? Visit my website or call me anytime!! Want the latest updates on Georgetown Texas Real Estate, news and latest developments? Sign up for the blog by clicking the link below:

After I bought my Green Builders home, I also purchased some of their company stock.  It’s an expensive way to force me to pay attention to any financial news regarding the builder.  Same thing for my gym membership.  If I don’t pay, I just won’t exercise.

Today I ran across an article that gave me reason to sell all of my shares:

Green Builders gets delisting notice
January 29, 2009 6:14 PM ET

from bizjournals.com

Green Builders Inc. could be removed from the stock exchange its been trading on if it doesn’t regain compliance with listing rules.

The company said it will explore all of its options and has not made a decision whether or not it will submit a plan to continue to trade on the exchange. For now Green Builders continues to trade on the exchange.

Ouch, so what does that mean for the builder?  Hopefully that won’t affect their ability to operate in Georgetown Village.  I would think that the only thing that changes is their ability to raise money through their shareholders.  However, I’m no financial guru.  It’s an obvious fact that the stronger the financials of a builder, the more likely they’ll stick around and net losses in two of its three most recent fiscal quarters doesn’t sound very promising.  It would probably be harder for the company to borrow money and So what’s your prediction?  Do you think they’ll stay or go?

Home sales are excellent in Georgetown, Texas! We’re breaking new records and we just can’t keep up with the demand! Buy now or rent forever…local shortage of homes!

Ok, not really, but I just thought you’d like to hear something positive in the news these days…and maybe, just maybe those headlines will be true for Georgetown one day.

Here’s a headline you can believe in:

FREE KID-FRIENDLY ENTERTAINMENT:

Balloon Twister, Face Painter,Refreshments, and Gift Card Give-Aways at Georgetown Village Tour of Homes -

Sunday, October 19th from 2-5PM

Since the “ace in the hole” for Georgetown Village is the Exemplary Village Elementary School, I thought it would be very fitting to have a kid-friendly event that would be different then the typical, boring open house. This tour of homes will feature homes by local builders: Origin Homes, Cobblestone Homes, Green Builders as well as larger builders: Lennar, Perry and David Weekley. It will be a one-of-a-kind opportunity to check out 6 different builders in one of the most talked-about communities in Georgetown.

Hope to see you there! Check out the map: gtv-edwardlui-handout

Want the latest updates on Georgetown Texas Real Estate, news and latest developments? Sign up for the blog by clicking the link below and don’t forget to comment on my blog, I love reader interaction!

You hear a lot about how Georgetown, Texas is such a great place to live for people who work in Austin. But what about 30 minutes in the other direction North? Well, that would land you right in Temple and the entire Killeen/Ft. Hood area. Don’t be scared off by the picture on the left…that would be more like your commute to Austin, then Temple. You see, if you’re heading north, there rarely is any traffic! Heading south into Austin, well, that’s another story.

I have recently had an influx of clients who are working in Temple/Ft. Hood/Killeen and one thing that is important to all of them is the drive time. So here’s a little research I put together thanks to the power of Google maps.

These calculations were done to the entrance of the neighborhood to the Hwy 195 exit 268. You’ll want to add another minute or two to get to the actual home.

These are all close to 10 minutes or less:

Shady Oaks = 4.1 Miles                          (6 Minutes)
Berry Creek/Logan Plateau = 4.5 Miles   (8 Minutes)
Falls of San Gabriel = 5.8 Miles              (9 Minutes)
Georgetown Village = 5.4 Miles              (9 Minutes)
Historic Georgetown Square = 5.4 Miles (9 Minutes)
River Chase = 6.7 Miles                           (9 Minutes)
Wood Ranch = 7.5 Miles                          (11 Minutes)

These are all 15-20 minutes:

Fountainwood Estates = 8.4 Miles              (14 Minutes)
Cimarron Hills = 11.9 Miles                        (15 Minutes)
Woodland Park = 9.1 Miles                          (15 Minutes)
Teravista = 12.2 Miles                                 (15 Minutes)
Mayfield Ranch = 13.7 Miles                       (15 Minutes)
Gabriels Overlook = 12.6 Miles                   (16 Minutes)
Behrens Ranch/Walsh Ranch 14.1 Miles      (16 Minutes)
Escalera Ranch = 12 Miles                           (17 Minutes)

From the Hwy 195 exit 268 to Temple exit 301 is 33.8 miles or 30 minutes. So you can get to Temple from any of these neighborhoods in 36 – 47 minutes one way. If you drive faster you can probably deduct another minute or two. Driving like a Grandma? Well, add another 5 minutes. Anyways, you get the point.

I’d be interested in some actual results! Do you live in one of these neighborhoods and work in Temple? How accurate are these times? Post your results!

Don’t worry, I’m not talking about this Big Lots,

I’m talking about THIS:

That’s right, .25 acres of beautiful irrigated grass that backs up to a panoramic view of the woods. It’s hard to find a lot like this in Georgetown Village. The lot has a nice slope towards the back of it, which would be ideal for building an in-ground pool with a negative edge that gently slips off into the horizon. You can best get this view from the back patio, living room and kitchen:

The kitchen is connected to the living room through a space that’s perfect for a large breakfast table and all of the counters and art niches have granite counters. Wood floors are in the kitchen, great room, study, dining room and hallways and the owners have used top quality plantation shutters, honeycomb shades and blinds in all of the windows. There are also granite countertops in the hallway “Tech center.”

One of the unique features of this home is that it is over 2400 SF and has 3 bedrooms and 3 full baths. The owners designed the floorplan to give this home two master suites so that you can have maximum flexibility:

There are also many great energy saving features in this home: Radiant barrier paint in the attic, Low-E windows, ceiling fans and a very efficient 13 seer air conditioning unit. The home also has 10 foot ceilings, an oversized garage and a front and rear covered porch. If you’ve been wishing homes had bigger yards in this neighborhood, you can stop wishing and check this home out for yourself. The price is $269,900 and it is also available for a lease or lease purchase for $1600/month for the first year.

Sellers Disclosure: sellersdisclosure

Survey: survey

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Craftsman-style home by Green Builders in Georgetown Texas

A few weeks ago, I helped one of my favorite clients, Rod and Carol, purchase a home by Green Builders in my neighborhood Georgetown Village. This was very special for me because it now meant that I have sold every major builder that has been built in this neighborhood! That would include Perry Homes, Bowen Homes and Origin Homes; which are the current builders, and also some past builders like David Weekley, Lennar and Morrison. That seems like a lot of builders for a small neighborhood of around 500 homes like Georgetown Village, but as we move forward, it seems as though only Green Builders and Perry Homes will be doing the bulk of the building.

After I showed the home to Rod and Carol I jokingly told them that I liked the floorplan so much that if they didn’t buy it, I would! The funny thing is, soon after they closed on the home, a contract on this home (pictured above) fell through and it came back on the market. It was the same exact floorplan as the one I had sold to Rod and Carol! So after a few days of negotiation, I am now the future owner of a Green Builders home! The beauty of this is that it’s just 5 houses down on my same street…so no moving truck needed:)

My wife is pretty excited because we gain an extra bedroom and lots more space. It may not look very large, but it’s 2400 SF and has 4 bedrooms, a gameroom, a study and a large studio above the garage which adds an additional 400 SF.

This studio is the main reason we’re moving. I’ve been blessed to be able to work from home, but the downside is that it’s hard to focus and concentrate with 3 kids running around in the home! Now, I can bring clients to my office without having to do the “5 minute house clean-up”, I can better focus on my work, and I’ll be better able to STAY AWAY from work when I’m with the family. I mean, what good is it to work from home yet not gain any additional quality time with the family?

So, here’s to HIGHER quality family time and LOWER energy bills!

If you have an experience with Green Builders please share them with me on this post! This blog is boring without any outside feedback and what you have to contribute can help somebody else!

Check out my home video for the tour:

123 Village Park Drive: Classic David Weekly with acres of wooded parkland for a front yard…maintenance-free.

A Georgetown Village Classic: Ideally located in the heart of the neighborhood. You don’t have to cross one major street to get to a wooded park, an exemplary Village elementary school or the Village playscape and pool. If one or all of those amenities appeal to you, this ideal location will give you the peace of mind and convenience most homeowners only dream of.

The home’s all-brick construction with a front porch, dormer windows and an alley-accessed garage bring out the charm in this David Weekly home. The classic design and architecture makes this home stand apart from your typical box-shaped two story and, like Mary Poppin’s bag, you will be amazed at how well 2900+ SF will fit in here.

Interior Pictures (Click to enlarge):

If you have ever visited a park and wished you could just take your home and stick it right in the middle of it, this is probably as close as it gets. Imagine drinking your morning coffee on the front porch and listening to the sound of chirping birds and rustling leaves of giant oak trees.

Located within this park is an enormous playscape underneath a canopy of trees with nearby picnic tables and built-in grilling stations. There is also an in-ground heated pool that is a stone’s throw away from the playscape. If you’re looking for a more intimate setting, the backyard on this home is just perfect for a small dinner party with friends or neighbors. All of the cutting, trimming and edging on this home is maintained through the HOA. Go ahead, sell your lawn equipment on Craigslist. You won’t need it anymore, and if you’re like most Texans, you could probably use more space in your garage anyways. The time you save maintaining the yard, can now be spent enjoying it. Enjoy the large park in front of you too, because all of that is meticulously maintained by the city.

There are 4 bedrooms, 2 upstairs and 2 downstairs. This allows the next owner the flexibility of having a guest room or in-law suite on the first floor. There is also a bonus room on the first floor that you can convert into a gym, home office or media room. Upstairs are two additional bedrooms that are adjacent to an over-sized game room.

The great thing about this home is that there is 2900+ SF and no wasted space here.  Even the laundry area  is refined to a closet so that you can just wash clothes, dry them and put them away.  Instead of having a place to accumulate “stuff” it’s in a closet to help keep your life simple.  Another example of great space-saving design is the attic space.  The gameroom has several doors that lead into some very useful attic storage. While you’re checking out the attic storage, don’t forget to look at the roof, there’s a radiant barrier there that helps to keep the inside of the home cooler so you’re not paying those outrageous Texas air-conditioning bills.

There’s a tricky balance between being close to daily conveniences and being too close! I mean who wants to live behind a CVS Pharmacy? This home achieves the perfect harmony: Located on one of the quietest streets with the best views and still walking distance to everything. Interested in viewing this home?

Contact Edward at 512-554-9594

Hooray for the little guys! Well, I guess they’re not that little if they’re on the American stock exchange. However, Green Builders is not somebody you hear about all that frequently, yet they just got recognized by the National Association of Home Builders for being the “2008 Single Family Affordable Home of the Year” at the National Green Building Awards. Nice to know that you don’t have to pay an arm and a leg to have something environmentally friendly eh?

Congratulations to their President and CEO, Clark Wilson, and the whole Green Builders crew. To learn more about Green Builders or to visit their homes in Georgetown or the Greater Austin area, give me a call. We’ll car pool and make it an earth friendly day as we shop for earth friendly homes. They’re literally building 2 homes down from where I live in Georgetown Village!

Full article is below:

Green Builders, Inc. Honored at NAHB National Green Building Awards

Green Builders wins award for Single Family Affordable Home of the Year

Austin, TX—May 12, 2008–Who says it’s not easy being green? Just ask the folks at Green Builders, Inc. (AMEX:GBH), a leading large-scale community developer of sustainable homes in the Austin, Texas area, who have been selected as the 2008 Single Family Affordable Home of the Year at the National Green Building Awards held by the National Association of Home Builders (NAHB).

Now in its 10th year, the National Green Building Awards recognizes individuals, companies and organizations for excellence in residential green design, construction practices and for green building programs and advocacy efforts. Competition for this award was particularly intense, but Green Builders stood out amongst the nominees for their continued innovation and advancement in the field of environmentally sustainable home building, a hot topic throughout the housing market.

“We were thrilled to be nominated. We are even more thrilled that we won. I think that this award speaks to how important environmentally sustainable home building has become nationwide. We look at this as not just a win for our company, but a win for the green movement and those in our industry who truly care about the efficient use of natural resources when building homes, “stated Clark Wilson, President and CEO of Green Builders, Inc.

Green Builders, Inc. incorporates energy efficiency, water and resource conservation, the use of sustainable and/or recycled materials, and indoor air quality control – all of which are considered when evaluating a green home. In addition, Green Builders’ homes are built to the stringent Green Building Standards set by NAHB.

Green Builders’ energy efficient and green, sustainable homes are priced from the $180,000s to $600,000s and available throughout the Austin area.
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About Green Builders, Inc.
Green Builders, Inc. (AMEX: GBH) combines the equal necessities of progress and preservation by building homes that tread lightly on the earth. Our success is measured by continued sales in a growing number of sustainable communities, which we believe to be vital to a sustainable planet. With respect for the world’s resources and for the needs of our clients, we create healthy, beautiful, long-lasting homes that people, and the earth, can afford. To learn more visit, www.greenbuildersinc.com.

I am a real estate agent. Let’s face it, when it comes to nest egg options, I doubt my broker has a 401k prepared for me. Therefore, I’m also a real estate investor. I buy homes and hold them for the long term. But what happens when these two roles collide? What should I do if, during the course of listing a home, I tell myself, “Gee, this is the exact type of home I’m looking for!” (Note: I really don’t use the word “Gee” in real life.)

Real World Situation

I just got off the phone with a nice young lady in my neighborhood, Georgetown Village, and was following up after a listing presentation I gave a few weeks ago. I was just about to finish the phone conversation when she made a comment that went something like this:

Some of my neighbors mentioned that you might not have my best interest in mind. They said that homes are selling in the $100/SF range and you list yours lower to maintain your statistics and sell your homes quicker (Note: My career average is 35 days). They also felt that there might have been a conflict of interest since you bought our neighbor’s home at a low price when you listed it, thus lowering values in our neighborhood.

I told her that it was a great question…and an honest one at that. I really respect the fact that she had the guts to confront me with this situation and give me an opportunity to respond. Whether I get this listing or not…thanks for doing the right thing! I encouraged her to call the individuals I bought the home from and get their first-hand testimonial when working with me. They would be the ones who could tell her whether I was being straight-forward and whether I tried to “pressure” them in any way. (Now I need to find their phone number!) In the meanwhile, I decided to dive deeper into the statistics of how much homes sold for in Georgetown Village….and how much I paid for my own listing.

Real World Numbers

The home I bought was built by Lennar and was 1603 SF. It was built in 2002 and although it didn’t have any significant upgrades, it was in very good condition. I paid $153,000 which comes out to $95.45/SF.

Since January of 2006, there were 10 resales that sold in the MLS that were built by Lennar and in the 1600 SF range (1603 SF – 1674 SF) and not ONE sold for $100/SF or higher. Do you want to know what the average $/SF was? $92.56/SF.

But wait, it gets better! In that same time period, there were two homes that sold in the MLS that were BRAND SPANKIN’ NEW! These homes were decked out with stainless steel appliances and upgraded hardware throughout the home…or rather, they didn’t have any ugly gold fixtures! Guess what the average $/SF was for these homes? $94.54/SF.

Yes, you read that correctly: I paid more $/SF for my home than the average comparable home that has sold in Georgetown Village for the past two years! In fact, I paid more $/SF for my home than two homes that were 5 years newer, had stainless steel appliances and were never lived in! Man, I need to quit letting my clients rip me off!

The Bottom Line: My integrity is worth far more than any investment home. Although I am self-employed, I do have a boss…he’s God. Ripping off a client is the last thing I want to do, because I am accountable for what I do and my actions reflect on the truthfulness of who I believe in. Here are a few important points to think about:

1. Did I really buy this home at a “great” price? It’s funny, but true: the home I bought was NEVER posted in the MLS and this is the FIRST time I have published it’s purchase price. So, how do people know how much (or how little) I paid for it? Neighborhood gossip is the last place to get accurate real estate information. Kudos to the lady who came straight to the source rather then rely on second-hand assumptions!

2. It seems like everybody is a real estate expert…except the real estate agents themselves! Read my most recent Georgetown Village case study to get the real scoop on what is selling for $100/SF or higher. $/SF is a good measurement for value, but if used out of context, and without supporting data, can be a dangerous and misleading catch-phrase. Get the facts! Only comparable homes that have recently sold determine the value of your house. If a real estate agent is determining the value of your home with something that hasn’t sold…run away….run away fast…..and hey, if you can multi-task , run away fast and call my number!

3. The seller is in control. It’s not just a good business practice, it’s also the law. Don’t you just hate pushy real estate agents that strong-arm you into making decisions you’re not comfortable making? Well, I do too. That’s why I always encourage my buyer AND sellers to make their own decisions when coming to a price. It’s my job to equip them with the data and inform them of pros and cons…it’s not my job to tell them what price to offer or list their home at. If you’re ever faced with a real estate agent that winks too much and has a gold tooth….or is using a high-pressured sales tactic on you, drop him like a ton of bricks.

In 2007, my homes stayed on the market for an average of 45 days (it was a tough year) versus the Georgetown average of 148 days. Don’t be fooled by real estate agents that “buy the listing” by offering to list your home for an inflated price. If a home takes 148 days to get an offer, trust me, it’s inflated…and around the 60 day mark, they’ll be coming to you for a price reduction that will mysteriously fall into my original recommended price range. So you decide: Sell it for market price now…or make some extra mortgage payments, deal with 20 extra showing appointments, and sell it for market price later.

So what do you think? Should I continue investing in my own neighborhood? Should homes be listed higher than market value so there is “room to negotiate?” Has a real estate agent ever bought your home? What was your experience? Please comment on my blog! Your comments are very much appreciated and keeps the conversation interesting!