RRR Austin

Tuesday, September 26, 2006

Too Good to be TRUE! Fraud in Real Estate

Unfortunately there are many people out there in the world who do nothing but prey on other's weaknesses. Almost everyone has a hard time "Working by the sweat of their brow", and therefore this "weakness" ends up being targeted all the time, to almost everyone, by just about anybody.

In real estate there are always "Get Rich Quick Schemes" whether it be in your city or if it be in another city, we're always hearing about this "great" idea!

Many of the traps and pitfalls people run into now adays are dealing with Mortgage Fraud. Many people out there are "high risk" according to a bank, but mortgage officers will try to get the person to "fudge" a little on how much money they make or how long they've worked or where they've lived in the past so they can get them the loan. Time after time, we've seen these cases end up in foreclosure, showing that the original bank qualification was "dead on".

In today's market, wherever there is hot real estate activity, such as that in Austin this past year, many real estate agents will travel or advertise to other areas such as California or Arizona and let them know that they can buy them a house that'd be great for investment. These investors beleive them and their numbers and let the agent buy them homes. Then they decide they want to sell the home and find out that there isn't any equity in the home! Youch!!

If the agent is a REALTOR(r), then there are some things that can be done, but if they aren't the investor is "stuck" in many cases. I'm always leery of someone telling me that I can build a house and sell it for an exhorbanant amount of money right after it's completed. I know of some markets that have done that in the recent past, but Austin is not one of them. Austin has a good steady growth, not an explosion.

There are many good deals out there where someone can make a lot of money, but in most cases we should ask ourselves, "If this is sooo good, why aren't they doing it? Why are they trying to sell it to me?"

Austin in Top for Best Pet Friendly Cities

AAA (Automobile Association of America) just came out with their top 10 best pet cities for TRAVELERS. So I wondered which cities are ranked as best pet cities for people who actually live there.


Austin is ranked in the TOP 10 for both catagories (Best Pet cities for Travel and to LIVE)

According to DOGFRIENDLY.COM, these are the top 10

1.Vancouver, British Columbia, Canada-

2.San Francisco, CA

3.Chicago, IL

4.Boston, MA

5.Austin, TX

6.Seattle, WA

7.New York, NY

8.Long Beach (LA area), CA

9.St. Louis, MO

10.Northern Virginia (DC area), Virginia

Here is the AAA list:

  • No. 1: Houston
  • No. 2: San Antonio
  • No. 3: Austin
  • No. 4: Albuquerque, N.M.
  • No. 5: Phoenix
  • No. 6: Dallas
  • No. 7: New York
  • No. 8: Orlando, Fla.
  • No. 9: Nashville, Tenn.
  • No. 10: Tucson, Ariz
OOO, look at all those TX towns!!!!!

Clean Energy News for Texas! AUSTIN LEADS

Quick! Buy a Hybrid Car fill the Tank with gas and drive out to TEXAS on 1 Tank. When you get to Texas fill it up again so you can make it through the state...when they say "great" state of Texas, that means BIG!!

Then find an energy efficient house (preferably in Austin, call Robert Rees Realty, the 3 R's of Real Estate, where every transaction should start with us) then call TRAVELER's INSURANCE to get a discount on your car insurance!

That's right, according the Austin Business Journal, " Travelers, an automotive insurance company owned by the St. Paul Travelers Cos. Inc., said Monday that the firm will reduce premiums 10 percent for Texas drivers that buy hybrid vehicles."

The City of San Antonio has a one-year pilot program that allows hybrid owners to park for free at parking meters!

Austin has a "Drive Clean-Park Free" program gives residents there a $100 pre-paid parking card to park at any of the city's 3,700 meters.

Cleaner energy in general is the talk of the town in Austin. Austin has a program where you can trade out your toilet for a more efficient toilet, they have discount programs for rain collecting systems, there is a tax cut on Energy Efficient Homes (there's a federal one as well), Willie Nelson's Biodeisel stations are popping up throughout Texas and Austin has a 2-3 stations (under a different brand).

***RRR works with a home building company that builds homes out of FOAM WALLS & Double low "E" windows to provide up to 70% more efficiency than "stick built" homes!***

There are wind programs going up, solar homes, and now even Hydrogen Homes being built in the area!

Tax breaks, insurance breaks, high oil prices, and American's desire to break all ties with the Middle East are driving the Clean Energy Market to hurry up with the technology, hopefully their i's are dotted and t's are crossed!

Friday, September 22, 2006

Investor's Already Pouring into Austin, Here's another group...

An LA development firm just bought 20 apartment complexes in downtown Austin. The plan on fixing them up to help them perform better.

The key outlook for OTHER investors to learn from here stems from what one executive from the purchasing company said. "We look for markets that are improving, that are turning around from an event that happened previously that had negatively affected the market," the executive says. "We see Austin coming back and we're definitely bullish on that market.

Taking a look at previous posts, you can see that trend is backed by additional jobs, angel investors, and better infrastructure.

Don't be fooled however, there is still plenty to buy up in the Austin Area... just beware of Texas' high property tax particularly when looking at Single Family Dwellings. The Property Tax could negate any Cashflow potential, or even prove a negative cashflow situation.

Just factor that in when looking at the market in TX.

Austin's Appreciation by MLS Area

Aug-06
MLS Area Appreciation YTD
FC 58%
OT 41%
WE 29%
5 28%
8W 22%
BU 20%
5E 20%
LC 18%
W 18%
CC 15%
RN 14%
4 14%
1A 13%
6 13%
2N 13%
1B 12%
2 12%
8E 11%
7 11%
SW 11%
JA 10%
10 10%
TC 10%
LS 10%
1N 10%
3 10%
3E 9%
N 8%
HH 8%
GT 8%
HW 7%
LN 7%
BA 7%
BL 7%
11 7%
NW 6%
RR 6%
SC 6%
WW 6%
HS 6%
BW 6%
PF 5%
LL 5%
SV 5%
CL 5%
HD 4%
LH 3%
HU 3%
MA 3%
SE 2%
NE 1%
EL 0%
GP 0%
9 -0.049019608

Thursday, September 21, 2006

Austin's Job's Grow by 51,000 since 2003

Opportunity Austin is an economic developement that was to bring 72000 jobs to the local area. Since the end of 2003 they have been key in bringing in 51000 jobs thus far.

They were instrumental in getting 76 companies have relocated to the region only 24 short of their goal in half the time!

Some of that job growth was "recovery growth" being that between 2000 and 2003, the region lost 3.7 percent of its work force, or 25,000 jobs.

Even with the loss of that workforce Austin continued to have a lower unemployement rate than most major markets and the national avg.

A large part of that job loss was due to Austin's lack of Job Diversification. When Tech busted, so did Austin's work force.

This time around, diversification is the strategy. Healthcare has already grown significantly, engineering fields such as bio-medical and wholesale trade are some of the key businesses that have started or relocated to the Central Texas Area.

Plus, I think job growth is always easier when you have WINNING TEAMS!! Go Horns!

Steady job growth is good for Real Estate...better than hype even...at least for the longrun.

Lakeway Resort Gets another BOOST!

New condo units near Lakeway Resort planned

From the Austin Business Journal on Wednesday...

It was reported that Behringer Harvard sold nearly six acres that are part of its Lakeway Resort and Spa west of Austin.

The developer plans to construct 70 condominium units on the property. Owners of the new condominiums will be offered an opportunity to partner with Lakeway Resort and Spa to offer their units as additional lodging accommodations for Lakeway guests.

Behringer adds that the sale and planned redevelopment associated with the hotel property is "another step in our plan to make Lakeway Resort and Spa again one of the Southwest's preeminent resort destinations and corporate conference centers."


Lakeway, an already popular suburb town of Austin, has one of nicest Spa Resorts around, being recognized locally as well as nationally. This new developement will implement a style of living that will be very "resort" like in itself. The developers are taking the modern trend of "Hotel Condos" to a resort level here in the Austin Area. More than adding growth to the area, it provides a diverse standard of living.

Austin Area's Healthcare GROWING

Just as I've reported in past blogs, Central Texas is determined to increase the healthcare industry in this area. Central Texas' healthcare industry leaders contributed $8.8 billion to the local economy, leading to new opportunities and the need to expand the industry, according to a recent report.

The primary medical sector directly accounted for 5.7 percent of the area's job base last year. The national average, the report says, is 7.1 percent. If Austin would match that number, the report says the city would create an additional $2.3 billion in output, $820 million in earnings and 22,175 new jobs.

New Hospitals are planned or being constructed as we speak in Cedar Park and Round Rock. Round Rock particularly has a large focus on Healthcare Development. With a new Scott & White Health Clinic already under way and plans for a Seton Medical Ctr amongst other plans, these will coexist wonderfully with the Texas State Satellite Campus that is already teaching pre-med type classes and the proposed nursing school within the same area.

More jobs mean more homes. Austin's still kicking!

Wednesday, September 20, 2006

Austin's Toll Roads to Open Nov 1st, a year ahead of schedule

Austin's new toll roads will open to traffic on Nov. 1 -- a year ahead of schedule, according to the Texas Department of Transportation and under budget!

Austin has traditionally had unusually high traffic congestion for a city of its size, and the 40 plus miles of extra road way will surely create some relief. In the past, there was a lot of opposition to adding roads in an effort to maintain the same ecosphere for the environment, as well as to keep Austin having a "small town" feel to it.

Unfortunately for everyone wishing any of these two ideals, Austin became more than just a college town that got heavy traffic only during State Congression Sessions. Primarily due to the emmergence of the technology industry and DELL's headquarters, jobs and business began to sprout, bringing in more people than the city could handle.

A few years ago Austin began building roads, not to prepare for growth, but to catch up from the growth that already occured. Toll Roads have been a HUGE debate as some don't want to pay for traveling on a road, but either way, everyone will be welcoming the optional routes once they open. Overall, Austin will still be a little behind the growth, but this is a big step to decrease the major traffic congestion.

Bio-medical fields expanding in Austin, shown by new implant

Many of the new investments for Venture Capital Firms within the Austin area have been and are within the Bio-Medical Field. A year ago Austin didn't really have any kind of Bio-Medical influence, which was one of the economic sectors that worried economists. However, there have been many new business pouring into the area and Venture Capitalists have been there to help them get started.

According to the Austin Business Journal, "A surgeon at the Central Texas Spine Institute implanted into the first human in the country a new cervical disc that promises to enhance spine movement.

The disc, called NeoDisc, is made by NuVasive Inc. (Nasdaq: NUVA) in San Diego. Orthopedic surgeon Dr. Randall Dryer implanted the device Sept. 15 at the Austin clinic."

Admittingly, I don't know much about this product, but I do know a LOT of people with back problems, and this product sounds like it could mean a lot of money for this company, which would mean more jobs, which would mean more real estate needs!

Which is what it's all about...well at least to m

Tuesday, September 19, 2006

DRIPPING SPRINGS is ready now! 55 Acre Shopping Ctr APPROVED!!

Near the intersection of RR 12 and US 290 close to the center of town, a 400,000 sqft shopping ctr is proposed with potential tenants such as Home Depot and HEB coming to the area.

Dripping Springs is a beautifully area southwest of Austin about 15-20 minutes. It has been rapidly growing in popularity due to the beautiful scenery, remote quiet area, yet relatively easy drive to Austin. The lots are a little larger in the area and compared to other areas of Austin, you can own more home for the money in this small but growing area. One of the disadvantages up to this time has been the drive time for well, just about everything. From grocery shopping to clothes, you have had to drive almost back to Austin!

The interest and growth of Dripping Springs will only increase a lot more with the addition of some needed retail!

Why does Austin/San Antonio keep Appreciating while the rest of the County Suffers?

In my opinion, JOB GROWTH.

A couple of years ago, Venture Capital Money spent in the Austin/San Antonio areas significantly declined. The upside to that decline was that the firms were spending the majority of their time raising additional funds.

The result is that the past year or so, they've been spending it. A few years ago, the thing that attracted many many people to Austin was it's low unemployment rate compared to the rest of the country. Sure Austinites thought they were going through a terrible recession, and sure Real Estate didn't appreciate (and in some areas depreciated 1%), but the outlook with such low unemployment didn't cause the Central Texas Economy to suffer to badly.

According to the Texas Workforce Commission, the August unemployment rate for the Austin-Round Rock area totaled 4.2 percent, a small dip from the July 2006 rate of 4.4 percent. This rate is also lower than the August 2005 unemployment rate of 4.3 percent. The unadjusted unemployment rate for the San Antonio area fell to 4.8 percent last month -- down from 5.3 percent in July, according to Alamo WorkSource. In fact, also according to the Texas Workforce Commission, since July 2003, Texas as a whole has added more than 651,000 jobs!

What's really exciting for Austin is that these jobs are no longer primarily "Tech" jobs. They are jobs in retail, building, engineering, health care and the sciences.

I look at Real Estate Growth like a company. If there is a lot of hype and excitement and potential, yet no fundamentals of cash reserves, solid business structure & contracts, then their stock eventually plummets when the hype ends. Yet a company with sound business structure may not receive a lot of hype but slowly, steadily, grows over the years. In my opinion, jobs are the structure that slowly & steadily grows real estate, more so than sunshine, beaches, and water (although those may bring the jobs).

So when I get investor's asking me why they should invest in Austin/San Antonio areas, I tell them that we have a good job market.

DRIPPING SPRINGS is ready now! 55 Acre Shopping Ctr APPROVED!!

Near the intersection of RR 12 and US 290 close to the center of town, a 400,000 sqft shopping ctr is proposed with potential tenants such as Home Depot and HEB coming to the area.

Dripping Springs is a beautifully area southwest of Austin about 15-20 minutes. It has been rapidly growing in popularity due to the beautiful scenery, remote quiet area, yet relatively easy drive to Austin. The lots are a little larger in the area and compared to other areas of Austin, you can own more home for the money in this small but growing area. One of the disadvantages up to this time has been the drive time for well, just about everything. From grocery shopping to clothes, you have had to drive almost back to Austin!

The interest and growth of Dripping Springs will only increase a lot more with the addition of some needed retail!

What are you paying a REALTOR(r) for?


Selling or buying a house is very time consuming. As much of an annoyance it is now it was terrible in the pre-internet days. Although REALTORs have more effective tools to find or market properties via the internet, there are still plenty of effective tools available to the public to find properties. So why pay a REALTOR?
When buying a home, it's important to have representation by a professional to be sure your interests are being covered. REALTORS are required to take a minimum of 15 hours of continued education every year on top of the educational requirements they met just to receive their licenses. These education requirements range from topics such as Real Estate Law, Appraisals, Marketing, Operating a Business, Real Estate Investing, Contracts, Laws of Agency (meaning they represent clients interests not their own, Home Staging and many other topics. They keep up with tax assessments, changes in zoning, ordinances and events that could change the market. They walk through dozens of homes a week, and get to know what is "normal" for a neighborhood and what is not. As many homes as an individual looks at online, you don't really get a feel for the property like walking through them. Realtors may also recommend special services such as Home Warranty Companies, Inspectors, or Repairmen. Associations most people don't have a familiarity with. Finally, if the seller hired a REALTOR to sell their home, that agent is legally and contracturally obligated to serve the best interests of their client, not yours the buyer. So anything you tell the agent may damage your interests in the sell. In nearly all cases a buyer's agent commission is included in the price of the home, whether you have one or not. And in nearly all cases, the price won't drop any more than it normally would just because you don't have a buyers agent.
As for sellers, the list is a little longer. Agents that represent buyers is fairly new, only within the past 20 years has this practice been establishing itself, which came about because of the concern that buyers were not being represented by educated professionals and seller's were, therefore creating an unfair advantage to the seller. Selling agent began years and years ago, when people found it difficult to sell their home while working out in the fields or the manufacturing plant for 80 hours per week. Selling a home today still takes a lot of time and effort, so much so that it's nearly a full time job for some areas. Once again, a seller is paying the agent because of they are professionals. Yet with sellers, you may or may not be paying your listing agent to do the following things as well:
1)Their knowledge & experience 2)Their marketing efforts 3)To handle the paperwork and make sure your interests are being handled.
There are 3 basic types of listing agent in today's market:
1)The conventional full - service REALTOR This is the agent (agency) that charges 6-7% of sales price and should be assisting with proper pricing of the home, staging the home to sell, marketing the property, showing the property and representing your interests during negotiations.
2)The discount brokerage This is the agency that charges a low one-time fee or low commission rates of 1-4%. These agencies usually will still usually assist in home pricing, but full marketing efforts will be limited to less expensive forms of advertising, such as placing on the MLS and possibly other free internet services and/or small local papers. Some will assist with negotiations yet others will not.
3)Real Estate Auctions This is still a fairly new approach to selling a home. In this situation an agent/auctioneer will aggressively market a home for weeks all leading up to the auction date. They require the funds to market the property up front from the seller, then will charge 8-12% or more on top of the auction price to the buyer which will cover commissions. If the home is sold before or after auction, then the commissions come out of the proceeds of the sale to the seller, just as the first 2 examples.
The benefits/negatives to each: 1)Conventional: Should be getting well rounded marketing paid for by the agent up front, low up front risk, getting professional representation and assistance/Agent may not market the property, hoping a buyers agent will stumble upon it.
2)Discount: In fast appreciating market where you don't have to advertise as much to sell a home, you could save some money. If you want to spend the money to market the property, you may still get REALTOR exposure for less price/If you don't market the property, who is doing it? May not receive needed amount of education from a professional.
3)Home should sell within 30 days with a solid buyer and contract./You pay for the marketing expenses up front, then pay up to 12% commission. If in a hot market, home may sell higher in same amount of time, for no out of pocket risk & at lesser commissions.
As you can see, there are many ways that you may benefit from a REALTOR, but as with any business, there are some who work hard and do what they say and there are others that don't.

Lago Vista on Pins & Needles with Growth

I have 2 clients that were looking to sell their homes in Lago Vista but just informed me they would rather wait. I asked them both "why" and of course they had a Great Reason!

The REASON: Ground just broke for a large Grocery Store!

The IMPACT: Lago Vista is located on the North End of Lake Travis (advertised as the cleanest and largest lake in central TX) and primarily has been populated by retirees because of it's driving distance to Austin. YOu have to go around the lake. By boat it's just a matter of minutes to be within lots of fun stuff, but you need a car on the other side of the lake! However, despite the drive to "fun stuff" and major places of employment, land in Lago Vista has steadily appreciated. Afterall you are minutes within the lake, golf courses and views abound in this hilly countryside area. The biggest deterant for growth has been lack of grocery shopping, even more so than the drive to "fun stuff" and major places of employment has been. Afterall, there are 3 golf courses, 1 country club with tennis courts, lots of hiking, biking and of course boating.

Now with Super "S" breaking ground, citizens in the area are excited for the growth and subsequent appreciation values that are sure to come!

Now if legislatures could some how circumvent environmentalists so they could build a bridge, have a ferry or some other transportation alternative in order to link the North Side of the lake with the South Side, well, who knows!

IKEA to OPEN Sooner than expected in Round Rock

According to an Article in the Austin American-Statesman Sept 8, 2006:

Round Rock's IKEA could open much sooner than planned.

The store, on University Boulevard, is on track to open in November instead of next spring as originally planned.

The 250,000-square-foot store is expected to open in time for holiday shopping.

The store will employ nearly 300 Central Texans. It is the third store in the state.

The Swedish retail giant has more than 235 stores in 34 countries, including 28 in the U.S

The importance of this to the North Austin suburb town of Round Rock, TX is significant, but not all by itself. Round Rock was put on the map in recent years because if it's enormous population boom mostly due to Michael Dell locating his company in the once quiet city. (That would be the Michael Dell of Dell Computers, just in case you don't live in America)

Now on the North side of Round Rock are some very intrigueing investment opportunities for long term property investors or commercial investors. It all started with a Master Planned Community called Teravista, (teravista.com) that had a beautiful golf course built almost before the first house was built. Homes in this lovely neighborhood, priced in the mid 100s up to 400K, have drawn so much attention that earlier in the spring each builder implemented a major price hike over the course of just a few months. (Major meaning $20-$30K) Only 1/4 of the developement is complete and new home builders are excited about the new roads being cut in for the new phases. On the back end of the property sits a large chunk of Multi-Family Zoned property waiting to be picked up by the right buyer, which will add even more diversified housing in this little area of town.

Last year the first major business opened across the street from this development, The TEXAS STATE UNIVERSITY satellite campus. A month ago was the grand opening of the Brand New PRIME OUTLET CENTER. A new shopping experience that allows those on the North End of Austin to save a trip to San Marcos for their discount shopping. As the article stated above, IKEA is to open soon, which is located across the street from the Prime Outlets. Next to the Prime Outlets is a new Medical Center run by Scott & White a very popular private health care provider in Central Texas. There are plans for additional satellite campuses to open up next to Texas State which will offer Medical Training Programs, soon making this a shopping/medical mecha for the Round Rock/Austin Area.

On top of this a city funded Waterpark just opened up at the beginning of the summer not to far from this area of building commotion. Not to be too cliche, but drop the young kids off at the waterpark, the older kids off to college classes, drop mom off to shop, dad can go golfing, then pick everyone up and go to the Scott & White Health Center to RECOVER!

What does this mean for real estate investors? First of all there is plenty land around this area still for sale for commercial or residential use. Although, the new home builders in the neighborhood raised their prices already this year, it would still be a reasonable investment for someone to buy a house in there now, whether to live or rent out. With all the growth and planned growth going on here, it's going to be a hot place to live for many years to come!

House Settling because of qoute, "Limestone Shift"...WAIT! Who's Qouting?

Here in TX or at least Central Texas there are a lot of foundation problems in residential homes. It's really not that uncommon, at least for REALTORS, to walk into homes that have cracks in the sheetrock, or sheetrock seams not holding. Just the other night on the news it was reported that a local Foundation Repair company had appx 800 jobs per month during this past summer!

I used to build homes in another state known for it's Rocky Ground yet we never seemed to have building problems like this. I asked around when I first moved to Austin and was told that the ground is basically Limestone with just 4 inches of topsoil and that the Limestone Shifts therefore causing the home to move and crack, blah, blah, blah.

The aforementioned Foundation Repair company mentioned a probable explanation for foundation cracks and such is the dry ground around the foundation shrinks and causes the home to settle.

Not that neither of these two explanations aren't accurate, but they don't tell the whole picture. I've always thought it to be strange that many of these "cracks" in walls are more and more showing up in newer homes. Built within a couple of years!

I just talked to a homeowner that had cracks appearing in his bathroom, so he contacted the builder per the warranty. Through extensive research and repair they found that there was a 10 inch gap between the concrete slab of the home and the ground it was supposed to be sitting on! 10 inches!!!

The way many homes in this area are built is the builder brings in truckloads of sand to build up the home. This may be for numerous reasons, meant for another blog. This sand is then leveled and the plumbing cut into it, then the concrete poured onto it. For those not familiar with building, or geophysicists, an important step is missing in this process. The sand brought in many times is not compacted, also called tamped, to be firm. It's just as if you level some sand on the beach then pour some concrete over it. If any moisture gets in the sand, it will compact, much like the firm sand right on the surf. For homes this moisture could come from the cement itself or from ground moisture rising from below, either way if the sand hasn't been tamped, it will have a natural "tamping" of sorts over time via moisture.

What had happened in the above example was just that. This prominent builder puts up so many homes that certain steps get taken out of the process, very important steps! We could just call this step the "Limestone Tamping Step"!

Just wanted to leave this note for buyers to be ware. Get Agent representation from an agent that knows building and doesn't represent the builder. Not all builders are bad, just be ware.............

Color blind? Your buyers may not be!

When an investor looks to buy a house, they are looking to see what they'll need to do in order to sell it quickly. They are trying to determine what costs the least amount of money but will appeal to most buyers. After all, the more buyers the home appeals to, the higher percentage you'll have of selling it quickly.

The first thing I always assumed before even walking in a home was that I'd probably have to paint it. Whenever I walked into a home and saw any colors on the walls, my assumption became knowledge.

A REALTOR I know told me of a glorious mansion in the hills of an area overlooking a Lake that sat on the market for almost 2 years. Most of that time it was vacant. The sellers went through quite a few REALTORS assuming it was the REALTORS fault it was not selling. Why not assume that? This house was custom built, and they hired DISNEY animators to come in a paint the whole house. Beautiful gorgeous murals on nearly every wall. The kids rooms were a kid's dream room. The hallways were fantastic.

They held open houses periodically to get more exposure and many agents would take their clients to the home just so they could see the elaborate paintings...yet no sale.

Finally fed up, the sellers called numerous agents in the area to come preview their home on the same day...an Open House for REALTORS per say. At the end of the walk through, they asked each REALTOR why they thought the home hadn't sold. They wanted to know what they should do to sell the home.

After a little thought from each of them, they all announced to paint the walls. The sellers were furious. What do you mean paint these walls!? Do you know how much it cost us? These are amazing! Few people in the world have walls painted so elaborately! But still they insisted...paint the walls.

The owners finally conceded and sold the home within a couple of months.

For some blue is gorgeous and tranquil for others it means "crazy". For some, green is elegant, for others it's "puke". For some red is vibrant and lifegiving to others it's "scary".

Yet for all, nuetral colors don't say anything. They usually don't produce moods or feelings. They are just walls. From my experiences I take clients through homes with colors and they just can't picture the walls painted a color they like. They just dislike the room and therefore the house. Yet I take them to a house with nuetral walls, and they comment, "Oh, I could paint these to make them look nicer." And they buy the home!

Crazy, I know, but that's how our brains work. Why cater your home only to those with creative minds who can see past the color. Cater your home to sell by ridding it of colors and sticking to nuetrals. Yes, paint is cheap, so instead of telling the buyers to paint it, you should.

One last note....White is not a nuetral color. It has the similar yet not as drastic of an effect as colors. People don't like to live in Hospitals and white walls give off a "hospital feel".

But what do I know, I'm just an investor/REALTOR! - Robert Rees

Color blind? Your buyers may not be!

When an investor looks to buy a house, they are looking to see what they'll need to do in order to sell it quickly. They are trying to determine what costs the least amount of money but will appeal to most buyers. After all, the more buyers the home appeals to, the higher percentage you'll have of selling it quickly.

The first thing I always assumed before even walking in a home was that I'd probably have to paint it. Whenever I walked into a home and saw any colors on the walls, my assumption became knowledge.

A REALTOR I know told me of a glorious mansion in the hills of an area overlooking a Lake that sat on the market for almost 2 years. Most of that time it was vacant. The sellers went through quite a few REALTORS assuming it was the REALTORS fault it was not selling. Why not assume that? This house was custom built, and they hired DISNEY animators to come in a paint the whole house. Beautiful gorgeous murals on nearly every wall. The kids rooms were a kid's dream room. The hallways were fantastic.

They held open houses periodically to get more exposure and many agents would take their clients to the home just so they could see the elaborate paintings...yet no sale.

Finally fed up, the sellers called numerous agents in the area to come preview their home on the same day...an Open House for REALTORS per say. At the end of the walk through, they asked each REALTOR why they thought the home hadn't sold. They wanted to know what they should do to sell the home.

After a little thought from each of them, they all announced to paint the walls. The sellers were furious. What do you mean paint these walls!? Do you know how much it cost us? These are amazing! Few people in the world have walls painted so elaborately! But still they insisted...paint the walls.

The owners finally conceded and sold the home within a couple of months.

For some blue is gorgeous and tranquil for others it means "crazy". For some, green is elegant, for others it's "puke". For some red is vibrant and lifegiving to others it's "scary".

Yet for all, nuetral colors don't say anything. They usually don't produce moods or feelings. They are just walls. From my experiences I take clients through homes with colors and they just can't picture the walls painted a color they like. They just dislike the room and therefore the house. Yet I take them to a house with nuetral walls, and they comment, "Oh, I could paint these to make them look nicer." And they buy the home!

Crazy, I know, but that's how our brains work. Why cater your home only to those with creative minds who can see past the color. Cater your home to sell by ridding it of colors and sticking to nuetrals. Yes, paint is cheap, so instead of telling the buyers to paint it, you should.

One last note....White is not a nuetral color. It has the similar yet not as drastic of an effect as colors. People don't like to live in Hospitals and white walls give off a "hospital feel".

But what do I know, I'm just an investor/REALTOR! - Robert Rees

NEW BLOG

The immediate posts to this one were from another BLOG we were running, but in making some changes that would allow more of our Agents to provide information, we needed to create an Entirely New Blog...This Blog Also has syndication if you would like to keep up with Austin. Just click on the

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