/RealtyLine_Mar_10

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Upcoming Events:

Score Big on the Green at the Annual TREPAC Golf Tournament

J

oin the Austin Board of REALTORS® (ABoR) on May 3

ticket to the awards dinner for $20.

for the annual Texas Real Estate Political Action Commit-

The tournament will begin with check-in and practice at 11

tee (TREPAC) golf tournament at the Avery Ranch Golf

a.m., followed by a shotgun start at 1 p.m. Advertising opportu-

Club located at 10500 Avery Club Drive, Austin, TX 78717. With

nities ranging from $200 to $1,000 are also available.

a registration fee of only $99 per player, this event is a great way

Last year’s tournament successfully raised more than $12,000

to show your support for TREPAC while enjoying a round of golf.

for TREPAC. Don’t miss your opportunity to participate in this

Registration for the tournament is now underway. Each reg-

year’s event by registering today. Registration forms can be found

istration fee includes 18 holes of golf, lunch, golf cart, entry to the

online at http://www.abor.com/events/golf.cfm.

awards dinner and two drink tickets. Late registration for the

For more information and questions, contact Christina Ortiz

tournament begins Apr. 26 and concludes Apr. 30. The late regis-

in ABoR’s Government Affairs Department by phone at 454-7636,

tration fee is $110 per player. If golf isn’t your sport, purchase a

ext. 1501 or by e-mail at government@abor.com. [RL]

March 17 NAHREP Monthly Luncheon Cool River Cafe - 11 a.m. March 18 WCAoR Luncheon Wingate Hotel/Conference Ctr. - 11:30 a.m. March 24 8th Annual St. Patti’s Day Golf Tournament Forest Creek Golf Club - 11:30 a.m. Power Luncheon with Sente Mortgage 901 S. Mopac, Bldg. IV, Suite 125 - Noon HBA Monthly Builder/Associate Mixer Architectural Granite and Marble - 5 p.m. AYREP’s Bowling and Networking Happy Hour The Highball Bowling - 6 to 7:45 p.m. March 25 WCR Monthly Luncheon ABoR Auditorium - 11 a.m. March 27 WCAoR: Every Drop Counts Blood Drive 123. E. Old Settler’s Blvd. - 11 a.m.

—Associates—

In Progress March 2010 • Vol. 14 • Issue 11

enjoyable. entertaining. It’s all about you.

New Home Trends Reported; View Them On HBA’s Tour By Linda McNabb

Austin Division, says their clients are seeking outdoor space,

water-saving toilets use an average of 39,000 fewer gallons of

more bathrooms upstairs and larger kitchens. Buyers must also

water annually for a family of four. That's enough for a lifetime

uyers who are looking for smaller homes and possi-

be looking for storage, as Kearns says she sees many are seeking

of drinking water for three people, said Shane Judd, senior mar-

bly lower prices should be pleased this year. Mem-

three-car

bers of the National Association of Home Builders

garages, a

(NAHB) who were polled at the International Builders Show

feature

say they will do one or the other, maybe both, in 2010.

once found

B

“Austin buyers today are looking for a well-designed,

only

in

energy efficient home,” says Colette Fitzgerald of KB

higher-end

Home. “In the past, large square footage was important,

homes.

but now buyers are looking for well-designed usable space,

Perhaps

Homebuyer Trends in 2010 Items “more likely” to be found in new homes in 2010

items homebuyers will “least likely” find in new homes this year

keting manager of water conservation for Kohler. As for aesthet-

1. walk-in closeT in masTer bedroom

1. ouTdoor kiTcHen

ics, stainless steel

2. separaTe laundry room

2. ouTdoor fireplace

is still a very pop-

3. insulaTed fronT door

3. sun room

4. greaT room

4. buTler’s panTry

ular option for appliances,

and

with some flex-space included that can be used for what-

the biggest

ever their specific needs are (i.e. office, media room, game

influence

5. low-e windows

5. media room

are mostly neutral

room, nursery, formal dining room, etc.).”

comes from

6. linen closeT

6. desk in kiTcHen

colors.

Builders were given a list of 40 features and asked which

utility costs.

ones they were likely to include in new homes this year, and it

"Builders

quickly became clear what is hot. Luckily, it appears to reflect what local buyers desire as well. “The must haves are open great rooms with the kitchen

floors and walls “Darker

‘espresso’ colored

7. programmable THermosTaT

7. Two-sTory foyer

will focus

8. energy-efficienT appliances and ligHTing

8. 8-fT ceiling on firsT floor

hot item now,”

heavily on

9. separaTe sHower and Tub in masTer baTHroom

9. mulTiple sHower Heads in masTer

Fitzgerald

10. bigger baTHrooms

“Also darker, dis-

energy-sav-

10. nine-fooT ceilings on firsT floor

says

open to the family room, energy efficient features, and separate

ing

tub and shower in the master bathroom,” Fitzgerald says.

tures," says Rose Quint, assistant vice president for NAHB's

flooring is very popular.” Drees Custom Homes is seeing a

Survey Research Economics and Housing Policy Group.

trend toward darker walls as well, Kearns says.

Nancy Kearns, sales manager of Drees Custom Homes

fea-

cabinets are a very

tressed

"Things we thought were consumer

P. O. Box 81366 Austin, Texas 78708-1366

Presorted Standard U.S. Postage PAID Austin, Texas Paid Permit #715

necessities—such

Buyers are expressing a preference for no carpet, or carpet

as

only in the bedrooms. “It gets too difficult to maintain in the

granite countertops in the

high traffic areas,” Fitzgerald says. “Plus many people have

kitchen or home offices—are not

pets and/or allergies, which causes them to prefer no carpet.”

on the list."

Fitzgerald says she thinks formal living rooms are the fea-

Also on the chopping block

ture that will be gone in the next decade. “Our culture has

this year are energy-guzzlers

evolved and there is not much of a need for formal living rooms

like the high-ceiling entryways.

anymore,” she says. “It is typically wasted space.”

Builders hope nine-foot ceilings will give the buyer a feeling of more square footage, which has been reduced.

You can visit us online 24/7 at www.realtylineonline.com

wood

Exterior trends include lots of style and design appeal, with mixed materials such as stucco and stone or brick. One of the best places to check out the latest trends is the New Home Tour sponsored by the Home Builders Association

Buyers will be looking for

of Greater Austin from 10 a.m. until 6 p.m. on Apr. 10-11 and

ways to save money in bath-

Apr. 17-18 at scattered sites throughout West and Northwest

rooms as well. For example,

Austin. For more information, visit www.hbaaustin.com. [RL]


2

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March 2010

realty line of austin

All photographs, press releases and article submissions can be e-mailed to: realtyline@austin.rr.com

Seth Thompson and Anthony Chambers, both of ZIP Realty, enjoy some karaoke at the second annual Mardi Gras happy hour that AYREP hosted at Common Interest on Burnet Road.

Realty Line of Austin is published monthly by Caxton Publications, Inc.© as a non-subscription publication for the more than 8,000 members of the Austin Board of REALTORS® (ABoR), the more than 1,100 members of the Williamson County Association of REALTORS (WCAoR) and the Home Builders Association (HBA) of Greater Austin. Caxton Publications, Inc.© dba Realty Line of Austin is an active member of the Austin Board of REALTORS®, the Williamson County Association of REALTORS® and is a honorary member of WCR. Caxton Publications, Inc.© dba Realty Line of Austin is not responsible for opinions or facts expressed by non-staff writers or for errors and any by-products in advertising or editorial copy. REALTOR® is a registered trademark. The word REALTOR® sometimes appears in this publication without the registered trademark symbol (®), for the purpose of saving space. Wherever the word REALTOR® appears in this publication, the registered trademark should be assumed.

Denise Moody of Gracy Title and Nancy Russell of Wells Fargo Home Mortgage join Carrie York and Pat Dukett, both of Austin Real Pros, at the annual forecast presented by Gracy Title.

Doren L. Carver

PUBLISher

Tawanna K. Carver

MANAgINg edITOr Linda McNabb

CONTrIBUTINg edITOr/WrITer/PhOTOgrAPher COLUMNISTS

John Horton, ABoR Chairman Steve Zbranek, HBA President J. Rene Ward, WCAoR President Susanna Boyer, WCR President John McClellan, Supreme Lending Latra Szal, Gracy Title

P. O. Box 81366, Austin, Texas 78708 Office: (512) 821-1900 www.realtylineonline.com

A PUBLICATION OF CAXTON PUBLICATIONS, INC.©

Janet “Monopoly Man” Widmer, center, of WR Starkey Mortgage, recognizes top referral agents for mortgage lending at the Keller Williams Realty Round Rock office awards luncheon. The top referral agents included Diane Waters, left, and Kim Whitlock, both of Keller Williams Realty.

President’s Crescent award winners honored at the JB Goodwin REALTORS awards celebration are Stuart Sutton, Erhard Sudermann, Adrian Grabe, Ashley Vavasour, Sandy Nelson, Lynda Conway, Leisa Ormsbee and Kim Perez.

Do You Know Why FHA Financing Is So Great? I can answer all your questions about the benefits “I do! of financing your new home with an FHA Loan. ”

— Ann McKinley, your FHA Expert

For Personalized Service, Call Me Today!

(512) 331-7292 NMLS #200305

annmc@austin.rr.com www.austinhomeloans.info 8800 Business Park Drive, Suite 200 Austin, Texas 78759


March 2010

realty line of austin

Austin Board of REALTORS®

Chairman’s Column John Horton

n

www.realtylineonline.com

income Property Course in April

and yield. This course will help you garner a

Gain valuable knowledge and the neces-

2010 Chairman

sary tools for success in the real estate business by signing up for one of the many

HiT THE GREEN AT THE ANNuAL ABOR TREPAC GOLf TOuRNAMENT

relevant courses on real estate offered by the ABoR Academy. This spring, a new Sales Skills Workshop course will debut at ABoR, along with the updated Income Property Analysis course. As real estate professionals, we know a va-

D

ust off your golf clubs and show

email at government@abor.com.

your support for the Texas Real

better understanding of the various methods of valuation, including price per square foot or unit, gross rent multiplier, equity rate of return, internal rate of return and the cash rate of return. Enhance your REALTOR® knowledge by attending these and the many other courses offered at the ABoR Academy. Register today at www.Abor.com/Education.

riety of skills are imperative to a real estate

forbes Ranks Austin as One of the

sale. Knowing what these skills are and how

Best Housing Markets

to utilize them can aid in the success of a

NAR Launches HouseLogic.com

Estate Political Action Commit-

3

transaction. Set for Apr. 29, the fast-paced

A recent report by Forbes magazine has

tee (TREPAC) by registering for ABoR’s an-

In February, the National Association of

Sales Skills Workshop will teach students

drawn attention to the top 10 housing mar-

nual golf tournament on May 3 at the Avery

REALTORS® (NAR) officially launched

about handling objections, effective negotia-

kets in America. To determine who made the

Ranch Golf Club located at 10500 Avery Club

www.HouseLogic.com, a new Web site that

tion communication, the sales and listing

list, Forbes looked at the factors that influ-

Drive in northwest Austin. Registration is

contains valuable resources for both con-

process, overpriced listings and the triangle

ence the appeal of each housing market, in-

only $99 per player and includes 18 holes of

sumers and REALTORS®. HouseLogic pro-

of sales success. Not only will you gain valu-

cluding price appreciation, affordability of

golf, lunch and a ticket to the awards dinner.

vides consumers with information on a

able expertise in real estate sales, you will also

homes and the number of foreclosures.

Late registration will run Apr. 26-30 with a

variety of topics, including home improve-

earn nine hours of mandatory continuing ed-

Austin was ranked 10th on the list, joined by

registration fee of $110 per player. Individual

ment and maintenance, the housing market,

ucation (MCE) credit by taking this $99

Dallas and Houston who ranked ninth and

tickets are available for the awards dinner for

taxes and finances.

course.

third, respectively. The report noted the sta-

$20 and offer a great way for those who aren’t

In addition to providing consumers with

Have you struggled with how to accu-

bility of the job market in all three Texas

interested in golfing to show their support for

a wealth of information, HouseLogic also

rately define, discuss and calculate the differ-

towns as an attribute that contributes to the

provides free content for REALTORS®

ent methods of valuation for a property? If

strength of their housing markets. Reports

through the REALTOR® Content Resource

your answer is yes, sign up for the Income

such as this one help further attest to the sta-

(RCR). With this tool, REALTORS® have ac-

Property Analysis course on Apr. 28 to learn

bility of the housing market in Austin and

cess to top-notch content written by profes-

about the 16 factors that contribute to value

across the state of Texas. [RL]

TREPAC. Advertising opportunities ranging from $200 to $1,000 are also available. Last year’s golf tournament raised more than $12,000 for TREPAC. Help make this year’s event a success by registering today. Registration forms can be downloaded at www.abor.com/events/golf.cfm. For more information, contact Christina Ortiz in ABoR’s Government Affairs Department by phone at 454-7636, ext. 1501 or by

sional writers for use in marketing efforts, including on Web sites, blogs and newsletters. To learn more about HouseLogic and to sign

up

for

RCR,

visit

Subscribe to our Calendar of Events

www.realtylineonline.com

www.houselogic.com/members/. ABoR Academy Offers Sales Workshop,

Tired of searching through endless pages of a website to find exactly what you are looking for?

Check out our NEW SITE! New look with easy to access information Calendar of events and classes Office Of fice directory with maps and staf stafff Industry related resources and tools

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www.FirstAmAustin.com www .FirstAmAustin.com For more information or locations contact your Business Development Representative:

Laurie Laurie Nunnallee Nunnallee

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Northwest N o r t h w e s t Hills H i l l s Branch B r a n c h | 512.422.3721 512.422.3721

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Lakeway L a k e w a y Branch B r a n c h | 512.638.6611 512.638.6611

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www.FirstAmAustin.com www.FirstAmAustin.com


4

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realty line of austin

March 2010

Angie Fernandes and Shelly Davis, both of Keller Williams Realty, walk around the Treaty Oak Homes model in the south Austin community with sales representative Johnny Mynhier, who pointed out all the standard features that are available to buyers.

Gracy Title’s Michelle Piperi directs Sherri Williams of Keller Williams Realty where to signed in at the annual forecast. Over 300 real estate industry professionals were eager to hear what is in store for Austin real estate in the months ahead.

The Judy Copple Group takes home many awards, including one for the number one group at the Keller Williams Realty Round Rock awards celebration. Gene Arant accepts the Eagle Award, voted on by his peers, and other awards for production including top closed volume team, top gross commission team and top listing volume team at the Keller Williams Realty Lake Travis awards ceremony.


March 2010

realty line of austin

www.realtylineonline.com

5


6

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realty line of austin

March 2010

Craig Smyser, left, and Bill Morris, both of RE/MAX Capital City, introduce themselves to Ann McKinley of Network Funding at the recent CRS luncheon. Ann was a lunch sponsor.

The grand champions of the ABoR TREPAC Chili Cookoff are Nick Nowak, Jason Nuval, Lori Bolton and Joe Cummings, all of Central Metro Realty.

Mark Hairston, right, of Mortgage IQ, shows Jerry Moore with the United States Department of Agriculture (USDA), his quick IQ checklist at the first annual Mortgage IQ Expo 2010.


March 2010

realty line of austin

Williamson County Assoc. of REALTORS®

7

President’s Column

like, trust and REMEMBER. The National

more memorable, interesting and eye-catch-

J. Rene Ward

Association of REALTORS (NAR) 2007 pro-

ing. Ask yourself: Does it break through all

file said only 62% of buyers used their REAL-

the clutter? Does the headline stop traffic,

TOR again. What happened to the other

does the design cause the reader to pause, is

38%? I would suggest to you that they didn’t

it easy to read, is there a call to action?

n

2010 President

A MESSAGE fROM YOuR ASSOCiATiON PRESiDENT

T

www.realtylineonline.com

he first quarter of 2010 is drawing

month’s premier session provided a wealth of

to a close and now is a good time

information to agents starting their new ca-

to assess how your business plan

reer. Stacey Rider and Sonia Guardado,

is developing. Are you on target to meet your

WCAoR Rookies of the Year for 2008 and

goals? Is your plan helping you react to the

2009, respectfully, generously shared what

changes in the market? The leadership team

made them successful in their first year.

remember their REALTOR. How often have

• Volunteer! Being involved with non-prof-

you had a friend or relative call to say they

its is a great way to give you exposure and

just purchased a home? You think—didn’t

meet potential clients. Most of the time all it

they know I’m a REALTOR? Yes, but they

costs is your time and expertise. Attending

didn’t remember. It’s not their job to remem-

charity events is another easy way to network.

ber, it’s our job to help people remember us.

Find something you are passionate about and

People remember memorable experiences.

meet like-minded professionals. You never

Think about the last salesperson you met,

know who you will be rubbing elbows with!

that went above the call of duty, gave more

• Say “Thank You.” In our busy world,

than you expected, treated you in a way that

sometimes thank you is over looked. But

made you feel special, anticipated your need,

when a sincere thank you arrives, we enjoy

and solved your problem in record time. Did

it. Pick a card that's eye-catching and artistic.

you get their name? Would you do business

Put it in a brightly colored envelope. A good-

with them again?

looking card is more likely to hang around

at the Williamson County Association of RE-

What inspired me in this session was how

ALTORS is excited about the things going on

REALTORS masterfully compete and cooper-

In Tom Peters’ book, “The Pursuit of

your client's desk or be displayed on a tack

at our association.

ate. In what other industry would two profes-

WOW,” he said, to succeed, individuals and

board and not immediately thrown away as

We have a lot of new members that have

sionals give a detailed plan to their competition

organizations must stand out from the grow-

other advertising. Handwritten cards are

chosen to join, for which we are truly grate-

on how they can be successful, how to build a

ing crowd of lookalikes; in his words, "Being

best, as are hand addressed and stamped en-

ful. We are visiting offices to get a pulse on

brand, where to go for products, and provide

average has never had much appeal. Better

velopes. Details like this tell your clients you

our members wants and needs. We are invit-

Web sites and services that worked for them?

fail with flair in pursuit of something great."

care and you create a memorable moment.

ing industry experts to each board of direc-

They ended the session by giving out their

tors meeting to help us build a stronger

phone numbers, saying “if there is anything I

association. Members are discovering the re-

can do to help you be successful, please call. I’m

• Review your marketing. Regardless of

wards of volunteering and are engaged in

busy, but not too busy to help you.” I’m sure

your budget, you can make your advertising

committees, events and fundraising.

this giving spirit has contributed to their real es-

The association has initiated a number of

tate success as well. They are creating a memo-

new programs and committees this year. One

rable, lasting experience for this year’s Rookies.

exciting new event from our education com-

We have all heard the saying, “people buy

mittee is the Rookie Club, chaired by Sonia

from people they know, like and trust.” And

Guardado. It is designed for agents that have

while that is true, let me add one more

been in the business for 24 months or less. Last

thought—they buy from people they know,

So what are you doing to stand out? Below are three ideas to help you:

There are a lot of other ways to stand out. Send me your best idea to wcaor@wcaor.org and we’ll post it on the WCAoR Web site at www.wcaor.org. [RL]

Subscribe to our Calendar of Events Today.

www.realtyline online .com.

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March 2010

realty line of austin

Laura Larcom, Jeanne Ann Klein and Rick Klein, all of Keller Williams Realty, place in the top five for top gross commission group and top closed volume group. They were recognized at the Keller Williams Realty Round Rock awards luncheon.

Attending the CTCAR luncheon to get more information about how appraisal reform will affect the real estate industry was Brian Pitman of Independence Title and Jim Greenwood of Austin Telco.

Susan Brown is greeted by Doris Stout and Kristina Gold, both of Drees Custom Homes, when she arrives to the model home grand opening in Steiner Ranch’s Santaluz section. Carol Baker, vice president of membership, HBA, and Colby Leigh of Service Tech have some fun at the Fat Tuesday themed mixer for builders and associates.

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realty line of austin

www.realtylineonline.com

New model homes debuting March 25, 11am - 1pm. RSVP to ecook@newlandcommunities.com. Plus receive $500 and a 5% broker co-op for any new home you sell between now and May 31.*

Lisa is your best selling point. Kids love her. Mothers fight over her. She even cleans the house before they return home. Meet the world’s greatest babysitter.

When your clients learn the never ending stories of Falcon Pointe, it becomes more of a matter of “How soon can we move?” Let us help you make the next sale an easy one. Find more stories and the perfect home for your clients at falcon-pointe.com.

Homes in Pflugerville from the $150s • 1,516 - 3,919 sq. ft. Centerra Homes • D.R. Horton • Lennar • Meritage Homes

Newland Communities is a privately owned company that creates residential and urban mixed-use communities in 14 states from coast-to-coast. We believe it is our responsibility to create enduring, healthier communities for people to live life in ways that matter most to them. www.newlandcommunities.com

*Must have client sign a new home contract in Falcon Pointe between March 15, 2010 – May 31, 2010, and close escrow by December 31, 2010, to be eligible for the 5% broker co-op and $500 VISA gift card. 5% broker co-op and $500 VISA gift card paid upon verification of eligibility and, closing and funding of the new home. Contact a Falcon Pointe sales office to obtain a copy of the Terms & Conditions. This is not intended to be an offer to sell or a solicitation of offers to buy real estate in Falcon Pointe to residents of Connecticut, Hawaii, Idaho, Illinois, New York, New Jersey, and Oregon, or in any other jurisdiction where prohibited by law. Homes within the Falcon Pointe community are constructed and sold by builders not affiliated with Newland Communities or Newland Communities’ affiliated companies. Prices, specifications and details are subject to change without notice. © 2010 Newland Communities. All rights reserved.

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www.realtylineonline.com

Real Estate

March 2010

realty line of austin

News & Notes

Burnam and Trantham join Leahy & Associates at Cornerstone Mortgage Company With more than 8 years of experience in mortgage lending, John W. Burnam, Jr., recently

Better Homes Realty opens first office in Austin Better Homes Realty (www.bhrtexas.com) Texas opened its first office in Texas in February with a model of operation that allows agents to keep a majority of their commissions, and provides agents with an opportunity to participate in a patented company revenue sharing program.

joined Leahy & Associates at Cornerstone Mortgage Company as a Loan Officer. A graduate

The initial office of Better Homes Realty, Texas will serve Houston, Galveston and

of Texas Christian University, Burnam is also the president of the local Business Network In-

Austin. Better Homes Realty, headquartered in Las Vegas, NV, has been a trusted name

ternational chapter. As a Loan Officer, it is Burnam’s job to educate and help clients with their

since 1964.

home purchases and to assist with planning for the future with refinances and up-to-date

The Texas growth strategy will focus on the new “hybrid agent,” the experienced agent

mortgage guidance. “John is committed to offering the best possible service to his clients,”

who believes in customer service principals, and who uses traditional business funda-

said Branch Manager Ryan Leahy. “He works diligently to find solutions to each client’s in-

mentals coupled with cutting edge technology supplied by the broker. The office model

dividual needs, and makes it his personal mission to over-deliver.”

offers a unique combination for agents to prosper with both the attractive commission

A frustrating experience refinancing his own home loan led Sam Trantham to the mortgage

split and the revenue share opportunity.

industry and to recently join Leahy &Associates as a Senior Loan Officer. “I believe that when

“We see home sellers putting pressure on the listing commissions, which in turn pushes

you put the client’s needs first in the decision-making process, everything else will fall into

pressure inward on the brokerage. Agents have become intent on keeping more of their

place,” Trantham said. “My personal slogan has always been working for your best interest.”

income so they can invest more in their personal marketing. This model allows them to

Sam has worked in the financial and mortgage industries for many years, and has an expert

do that,” stated Roger Sturgell, a 33-year real estate veteran and former Chairman of the

understanding of how best to help his clients plan for their future.

Austin Board of REALTORS.

Trantham and Leahy also host a Sunday afternoon radio show, Mortgage Savvy, on Talk

Sturgell was inspired to make the new model a success after watching the changes in

Radio 1370 AM. Mortgage Savvy focuses on mortgage lending education through a lively

the industry, "Partly due to technology, but also because of the dynamic of the “work at

exchange between local experts and listeners of how mortgage lending affects real estate buy-

home” agent who is able to take advantage of that technology to provide more information

ing decisions. The show airs Sundays from 1 to 2 p.m.

and better service to his or her clients."

WCR to award Educational Scholarships The Women's Council of REALTORS® (WCR), Austin Chapter, is committed to pro-

Coldwell Banker United, REALTORS announces Million Dollar Club agents

viding educational opportunities for its members. Each year in March, five $200 scholar-

The Westlake office of Coldwell Banker United, REALTORS is proud to announce its

ships are awarded to individuals who are members of the Austin Board of REALTORS®,

Million Dollar a Month Club for January 2010. They are Jana Birdwell, Brian Fahey, Ali Gars-

the Williamson County Association of REALTORS® or National members of the WCR

son, Barbara Gremillion, Tosca Gruber, Eve Kush and Pat Vincent.

Austin Chapter who have contributed to the success of the organization. You must have

Subscribe to Realty Line’s Online Calendar of Events at w w w. r e a l t y l i n e o n l i n e . c o m

renewed your membership prior to the Mar. 25 luncheon. The awarding of these scholarships is just one of the many member benefits provided by the Austin Chapter of WCR. The deadline for submitting applications is Mar. 18. Contact Jeanne Butterfield at jeanne@austinhomes4sale.com

Austin Area Market Update from your friends at Gracy Title

Top T op 10 Selling Areas 2010 YTD Area PF RRW RRE CLN HH NW GTW CLS LS 10S

# Sold 116 109 102 99 96 96 95 89 81 55

Volume $18,497,155 $26,611,375 $18,152,091 $18,202,813 $15,823,401 $15,575,896 $24,197,715 $20,883,972 $34,887,221 $9,830,931

T Top op 10 Selling Zip Codes 2010 YTD Zip Code 78660 78613 78641 78681 78664 78750 78748 78745 78633 78665

# Sold 103 101 85 85 60 60 58 54 52 51

Volume $16,523,508 $22,124,929 $17,028,351 $19,695,678 $9,569,927 $8,239,483 $10,944,559 $9,412,704 $11,104,829 $9,962,414

Top T op 10 Median Price by Area Area

Median Sold Price

8E

$640,000

1B

$495,000

8W

$470,000

RN

$355,000

LS

$339,000

1A

$325,000

W

$319,500

4

$310,750

HD

$304,000

7

$295,500 Based on information from the Austin Board of REALTORS® (alternatively, from ACTRIS) for the month indicated on the header. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. All data is provided ‘AS ,6¶ DQG ZLWK DOO IDXOWV 'DWD PDLQWDLQHG E\ WKH %RDUG RU $&75,6 PD\ QRW UHÀHFW all real estate activity in the market. Copyright 2010 Austin Central Texas Realty Information Services, Inc.

www.gracytitle.com


March 2010

Realty Line of Austin

www.realtylineonline.com

11


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www.realtylineonline.com

realty line of austin

March 2010

SHOW OUR NEW HOMES AND YOU’LL HAVE SOMETHING TO SHOW FOR IT.

Kay DaSilva of Avalar Austin, CRS president Fred Norton and Avis Wukasch of Keller Williams Realty are pleased with the number of attendees at the Westwood Country Club for the CRS meeting.

Scott Fehr of Keller Williams Realty, Jean Rude of First American Title, Russ Eitel of Keller Williams Realty, and Melinda Carroll of First American Title thank Leigh Ann McCoy of Mission Mortgage for sponsoring the economic forecast at the Lakeway Activity Center.

Now, each time you register a new, qualified prospect at the Steiner Ranch Welcome Center, you will receive a $20 Gift Card to Nordstrom. The more you show, the more you collect! And the best part of all, these cards never expire. Call or visit the Welcome Center for details and start eyeing that new pair of shoes! Showing your clients new construction in Steiner Ranch is always in style.

Cindy Dietz and Wendy Feeley, both of MileStone Community Builders, welcome broker Arnold Tijerina to the grand opening of Paradiso Villas, and to Austin. He just relocated from San Antonio.

Homes from the $250’s to $3+ million Welcome Center: 512-266-5833 or 800-783-4640 For more information, visit www.steinerranch.com

Builders: Taylor Morrison, Drees Custom Homes, Highland Homes, Monterey Homes, Sendero Homes, Partners In Building Custom Homes: Affinity Homes, Randy Rollo Homes, Echelon Homes. Information contained within this advertisement is correct at the time of publication and subject to change. In order to receive gift card, Realtor must accompany prospect into the Welcome Center on first visit.

A fundraiser was held for Lynsey Thurman, center, as she is in desperate need of a life-saving kidney transplant. Lynsey is the daughter of Coldwell Banker United agents Ed and Becky Thurman. All donations will be used for transplant related expenses. To donate, visit www.COTAforLynseyT.com.


March 2010

realty line of austin

HBA of Greater Austin

President’s Column Steve Zbranek

n

2009-10 President

n Builders to Advance REALTOR

Commissions on new home construction in the 2011 Parade of Homes TourTM

W

ith all of the chatter on the

rough economy this year, many buyers are thinking

they can get a great value in buying a house that is distressed. They may be looking for a house that the builder has had to hold too

interior design trends are all on display at

13

ucts, and builders discounting all of their costs.

For a REALTOR®, participation in the Pa-

When it is all complete, the cost of these homes

rade of Homes™ should also be a source of

is going to be substantially under—not just

pride, and more importantly, future referrals.

other new homes; but price competitive with

ATTENTiON REALTORS: YOuR BuYERS COuLD BuiLD CuSTOM fOR 2011 PARADE Of HOMES WiTH HuGE DiSCOuNTS AND uPGRADES

www.realtylineonline.com

so called “distressed” properties.

The choice for today’s buyers is clear, do they want a home where someone else did all

This is a great opportunity for REAL-

of the selections, carried the interest, let the

TORS® in this area to bring potential cus-

house sit idle, and had the warranty period

tomers to large lots with trees near City Park

clock tick? Or, do they want a brand new

and Lake Austin. To sweeten the deal, many

house with their own floor plan and selections,

of the builders have already agreed to advance

fresh landscaping, upgrades, and the value

REALTOR® commissions so that you can get

that comes with having been one of the pre-

paid much earlier in the building process.

mier houses in Austin constructed in 2011?

It is a common occurrence for a home

A custom home sale in Green Shores is good

Rough Hollow Lakeway has already been

owner to call the HBA office to inquire about

for the HBA, it is good for the builder, it is good

chosen for 2010. The HBA is currently work-

a past Parade of Homes™. There should be

for the buyer and it is great for the REALTOR®.

ing with the developer of Green Shores to

no doubt that a home that has been in a past

kick off the Parade of Homes™ for 2011.

Parade of Homes™ retains prestige for life.

each and every event.

For information, you can contact me or Harry Savio at the HBA at 454-5588. [RL]

However, with the current crunch in the financial markets, to make a 2011 Parade of Homes™ possible, builders need buyers in advance. Simply put, banks are not loaning money for homes that are not pre-sold. Even

long or that the bank has taken back. What I

though inventory levels are dropping dra-

always ask is, “Why would you do that

matically, and construction costs are escalat-

when you can have exactly the house you

ing; conventional lenders shy away from

want, with the exact floor plan, and precise

unsold housing stock right now. And while

exterior you want built to your specifications

2011 seems far off to most of us, the time to

for the same cost or even less?”

get construction started is drawing very near.

Each year, the Home Builders Association

The good news for potential buyers is our

(HBA) of Greater Austin presents the presti-

developer and builders are willing to pass

gious Parade of Homes™ where dream

along their discounts in order to showcase

homes become reality. The tour showcases

houses in the 2011 Parade of Homes™. A buyer

some of the best our regional builder mem-

will be able to purchase a home customized for

bers have to offer. Exquisite architectural

them, with a lot discount, upgrades that the

trends, the latest in home technologies and

HBA members donate to advertise their prod-

8303 Mopac, Suite A-201 - Austin, Texas Texas 78759 512.592.5400 - unitedlendingusa.com

These 100% Club members accept their awards at the Stanberry & Associates awards breakfast. Seated: Janet Wise, Jennifer Long and Kristi Hayes. Standing: Cathy Coneway, Annie Bright, Ann Daughety, Mark Clausen, Carolyn Parobek, Jeff Stewart and Rick Schulte.


14

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Help your remodel customers maximize their renovation dollars Recognized as the nation's #1 originator of renovation financing, our renovation loan options may provide your customers financing power to remodel, repair, improve and bring out the most in their home. • Fixer-uppers, rehabs, and properties in any condition are eligible • Provide your customers a loan amount that is based on the completed value of the home after improvements with our Purchase & RenovateSM program • Qualified customers can transform a “beforeâ€? with a loan based on the upgraded “afterâ€? • We can lend up to 110% of the after-improved value To learn how your buyers may benefit from renovation financing, call today!

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W W W . R E A LT Y L I N E O N L I N E . C O M

March 2010


March 2010

realty line of austin

Associates In Progress

Advertiser Profile

www.realtylineonline.com

15

seeing business evolve over several generations. “Many of our

By Linda McNabb

referrals come from real estate agents we have done business

SWBC MOrTgAge

with, and now their children are in real estate. It is priceless to know that our clients trust us to

S

not only do business with them, WBC is a recognized leader in the

but to also do business with

going out of business.”

their children.”

financial services industry. Char-

The ability to grow into a respected

lie Amato and Gary Dudley,

leader in the industry while still offering

A home economics major

grade school friends who met again in col-

friendly, personal service also sets SWBC

who switched to real estate

lege, began the company in 1976 to pro-

apart. The employees at SWBC are top-

upon graduation because of the

vide insurance and financial services to

quality, with a solid education, and a

possible income opportunities,

lending institutions. Today, SWBC is a di-

strong work ethic. One of the things often

Komm says she still enjoys the

versified financial services company pro-

noted about SWBC’s employees is their

business because it is always

viding

insurance,

outstanding customer service and team

changing. “There is nothing

mortgage, and investment services to fi-

spirit that comes from working for years in

about this industry that stays

nancial institutions, businesses, and indi-

the industry.

the same,” she says. “It is either

a

wide

range

of

viduals. With offices across the country, it has more than 1,400 employees.

“Experience. Period. Is really the only thing that counts in this market,” Komm

expanding or shrinking. It gets in your blood.”

Vice President Linda Komm says she

says. “It is a shrinking market and you have

SWBC Mortgage Corporation is a full

has seen much growth just in the few years

to keep up with the changes. You have to

service mortgage banking company with a

she has been with the company, which is

know what you can and cannot do.”

Linda Komm Vice President - Austin

wide array of products and services, in-

Headquartered in San Antonio, SWBC be-

starting its eighth year in Austin. “Since I

Because SWBC is well known for qual-

cluding: in-house underwriting, closing,

lieves in giving back to people and commu-

came here in 2002 we have gone from just

ity work, most of the company’s business

and funding; aggressively priced portfolio

nities in which its staff lives and works. In

three branches to 34 branches nationally,”

is generated by referrals and apparently

jumbo loans; and an extensive menu of

addition to sponsoring hundreds of sporting,

she says. “Now three of them are right

they are plentiful. Komm says the three

government

including

nonprofit, civic, and leadership events,

here in Austin.”

Austin branches generated $150 million

USDA, FHA, VA, and TX VET loans.

SWBC has been instrumental in developing

loan

products

She says one factor that contributes to the

last year. “You can’t generate that much

SWBC Mortgage also offers traditional

Credit Unions for Kids, a grass-roots pro-

company’s growth is that the parent com-

production in this market unless you have

agency loan products, such as conforming

gram comprised of credit unions that raises

pany is an insurance and financial services

a good solid base and expertise in your

fixed-rate mortgages with multiple op-

money for the Children’s Miracle Network.

company. “We have always operated on a

staff,” Komm says. “In this market, you

tions. All of SWBC's programs are de-

SWBC is also a partner in Junior Achieve-

conservative basis and did not get caught in

need to come to someone who can get the

signed to help borrowers select a loan

ment, United Way, and the March of Dimes.

the mortgage meltdown. That enabled us to

transaction closed.”

program suited to help their personal fi-

For more information, visit SWBC's Web

nancial plan.

site at www.swbc.com. [RL]

buy companies that were shifting down or

Komm says it is particularly rewarding

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16

www.realtylineonline.com

realty line of austin

March 2010

Realty Line’s Tawanna Carver congratulates Tish Darey, who along with her husband, Jeff, was honored at the JB Goodwin REALTORS awards breakfast for achieveing more than $10 million in production in 2009.

Peg Braxton and Diana Mitchell, seated, and Danyle Cupp, Krista Kins and Barbara Preston, all of the Peg Braxton Group, are the overall winners in group categories at the Keller Williams Realty Lake Travis awards ceremony, taking awards for Top GCI, Top Closed Volume and Units Taken Listing Volume.

Garrett Martin of MileStone Community Builders welcomes Matthew Brunty of New Home Locators to the company’s grand opening of Paradiso Villas on Parmer Lane.


March 2010

realty line of austin

Women’s Council of REALTORS®

President’s Column Susanna Boyer

n

2010 President

A MESSAGE fROM YOuR CHAPTER PRESiDENT

honor of our Texas state President Deborah

the Top 50 Influential Bloggers, the Top 12

Spangler moderate our Rookie Panel. This

Women in Blogging, and won the Inman In-

panel was highly anticipated and our audi-

novator Award. She will present Social

ence was totally engrossed in everything

Media—“Truly simplified for the real estate

they had to say. They discussed how, even in

community.”

a down market, and being new in the busi-

A REALTOR Variety Show is in the plan-

ness, they still closed millions of dollars in

ning stages. If you or a REALTOR you know

transactions. They shared personal triumphs and defeats. Our panel members were ABoR Rookie of the Year Anna Marie Garcia of Aralyn & Company Real Estate; WCAoR

F

17

www.realtylineonline.com

would

like

to

share

their

talents/acts/singing/dancing and be eligible for prizes, please send an e-mail to susanna@susannaboyer.com. More informa-

ebruary has come and gone, and if

Reynolds from our El Paso Del Norte chapter

Rookie of the Year Sonia Guardado of JB

you missed the Texas Association of

and last, but certainly not least, was our very

Goodwin REALTORS; Top Producing Rookie

REALTORS®-Women’s Council of

own Avis Wukasch being awarded the “En-

Teresa Roberson of Coldwell Banker United

REALTORS® Winter meeting in Austin, you

trepreneur of the Year.” Congratulations to all

REALTORS; Top Producing Rookie Tim Heyl

truly missed out on some wonderful free ed-

of these fabulous volunteer leaders.

of Keller Williams Realty; and AYREP Presi-

renew is Mar. 31. Have you renewed for 2010?

tion coming soon. We

are

nearing

the

end

of

our

Retention/Recruiting contest. Deadline to

ucation, industry updates and some good old-

Following the luncheon, WCR sponsored

dent Sumina Bhatti of Keller Williams Realty.

If not, please give Susan Brown, vice president

fashioned fun. Friday was filled with

a very informative discussion with a panel of

Our next meeting will be held on Thurs-

of Membership, a call and she can help you

committee meetings where many WCR mem-

leaders in Texas real estate (TREC Adminis-

day, Mar. 25, at 11 a.m. at the ABoR audito-

renew online. If you would like to join, Susan

bers met, reviewed their individual commit-

trator Douglas Oldmixon, HBA Greater

rium. Our speaker will be Lani Rosales. Lani

can help you do that too. Our contact infor-

tee charges and set action plans into motion.

Austin President Steve Zbranek, Texas Mort-

won the Texas Social Media Award as named

mation can be found on the Austin Chapter’s

On Friday night, the WCR Texas chapter

gage Bankers Association President-elect Scott

by the Austin American-Statesman, named in

Web site at www.AustinWCR.org. [RL}

sponsored the 3rd Annual Celebrity Waiter

Norman, NAR Appraisal Committee Member

Dinner, and with the help of trustees and

Candace Cooke, and 20-year real estate vet-

other dignitaries from around the state, in

eran Helen Edwards) led by TREC Commis-

Mardi Gras costume, raised over $13,000 for

sioner and TAR past chairman Avis Wukasch.

TREPAC. We got an early start on Saturday

The discussion was very timely with “The

with our Governing Board meeting and after

new realities of real estate in Texas.”

that business was taken care of, we went into

As you explore opportunities to build

our WCR Awards Luncheon where some

your business, we would like to invite you to

pretty special people were recognized for the

network with some of the most experienced

accomplishments for 2009. Texas state “Affil-

and successful REALTORS and affiliates in

iate of the Year” was presented to Connie Par-

the industry and attend the upcoming

sons, a member of the Houston chapter. The

Women's Council of REALTORS Business

“Member of the Year” was awarded to Carol

Resource Meetings. In February, we had the

Available

on inventory homes at Cypress Creek Townhomes!

Bill Stanberry, far right, presents listing agents Damon Doss, Laura Nye, Carolyn Parobek, Ann Daughety and Terese Peabody with awards at the company’s awards breakfast.

6% COMMISSION

23 Homes 30 day closings

Affordable LOW-MAINTENANCE LIFESTYLE, LAWNCARE INCLUDED

Comfortable PRIVATE COMMUNITY POOL & WALKING PATHS

Enjoyable SHOP, DINE & PLAY nearby

Garden Homes from the $150’s 512-215-3424 11400 West Parmer Lane, Cedar Park

Townhomes from the $130’s 512-215-5220 1900 Little Elm Trail, Cedar Park Take 183A North to the Brushy Creek/ Cypress Creek Exit. Turn left at light & travel 1.7 miles on Cypress Creek Rd., then left on Juliette Way & left on Little Elm Trail. Cypress Creek Townhomes are just ahead on the right.

From Hwy 183/Toll Road 183A, head East on Brushy Creek Road, turn left on Parmer Lane. Paradiso Villas is 1/4 mile on the right.

6% commission is only available on homes closing within 30 days at MileStone Community Builders’ Cypress Creek Townhomes project. Other inventory and to be built homes (including those at Paradiso Villas) may qualify for 4% commission. Limited time offer available on new contracts only on select inventory homes; cannot be combined with other offers. Realtor must accompany buyer on initial visit to community. Homes subject to prior sale. All incentives and commission programs may be changed or canceled at any time without notice. Additional restrictions may apply; see sales consultant for details.

www.MyMileStone.com


18

www.realtylineonline.com

March 2010

realty line of austin

Instructor Bill Evans of Austin Real Pros keeps the subject entertaining during a recent property management class.

Carolina Aceituno and Kim Whitlock, seated, join T. Trevino, Donna Webster, Debbie Fontenette, Karen Halsema and Don Dungan at the Dell Diamond for the Keller Williams Realty Round Rock awards ceremony, where they were honored as top individuals for 2009.

HBA Executive Officer Harry Savio welcomes Gena Hammonds, left, of Austin Title, and Penny Green of Willow Bend Mortgage to the builder/associate happy hour at Harway Supply. TREPAC chair Susan Horton, center, gives a thumbs up to Joy Herring and Marie Dang Schwartz, both of Realty Executives, and their entry at ABoR’s TREPAC Chili Cookoff.

Looking to hang your hat elsewhere? Supreme Lending of Austin is looking for well-qualified Mortgage Professionals. Supreme Lending has all the tools that you will need to be successful in today’s changing market place. On-site Underwriting and Processing If you want to join a winning team and find out more information about this opportunity, call 512-279-1150 or e-mail John.McClellan@SupremeLending.com

Listen to the radio show “The real estate Zone” every Sunday 11 to Noon on News radio 590 KLBJ and 99.7 FM FhA • VA • Conventional • USdA


March 2010

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March 2010

realty line of austin

Lisa Altamirano, right, of Gracy Title welcomes invited guest Cathi Boortz of Pohl, Braasch and Associates to the annual forecast hosted by Gracy Title.

Terry Godbold of RPM Reliable Property Management serves up some good ol’ fashioned chili to Sandy Dochen and Carol Dochen, both of Carol Dochen REALTORS at ABoR’s Chili Cookoff which has become an anticipated event. Pleased that everyone is having a fantastic time is ABoR’s Governmental Affairs Director Earl Hairston, far back, center. Danette Tidwell of Time Warner Cable gets ready to bowl a strike as her family looks on from behind at North American Title’s second annual Bowling & Beer tournament.

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March 2010

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Mark Hairston of Mortgage IQ starts the first ever Expo 2010 by introducing a host of speakers who were on hand to empower REALTORS with new solutions and strategies.

Enjoying a light lunch at the Drees Custom Homes model grand opening are REALTORS Kris Aitala, broker, and Cindy Dennis of Quigley Team Realty. Take your clients soon to see everything Drees Custom Homes has to offer in Steiner Ranch’s Santaluz section.

Bette Cook, back row, pink shirt, of North American Title gathers a team from Amelia Bullock REALTORS to show off all the fun they had at the company’s second annual bowling and beer tournament. Mary Hickey and Amber Hart, both of Keller Williams Realty Lake Travis, are recognized for being in the top listing volume by individual category at the awards breakfast. Mary ranks first and Amber ranks second in their category.

Ellen’s Staging Tip: Yes, you can! Cleaning a fiberglass tub or shower floor is a challenge. The icky, dirty residue is almost impossible to clean. Here is the process that turns a “no way” response to “Yes, I can” action!

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Associates In Progress

Advertiser Profile By Linda McNabb

www.realtylineonline.com

23

floors, garden tubs, arched openings,

“When we save money, we pass those

vaulted ceilings, media rooms, game

savings on to your clients. For example,

rooms, and attached two-car garages. Located on Little Elm Trail, just off Cypress Creek Boulevard between Lakeline Boulevard and Hwy 183, Cypress Creek Townhomes offers the benefits of home owner-

MileStone Community Builders, LLC

s h i p

Park Medical Center.

has entered the market in two new

“We are delighted to have found

c o m -

Cedar Park communities, with plans for

such exceptional sites in such a vibrant,

b i n e d

aggressive growth throughout Metro

growing

with

Austin. Founders Garrett Martin and

MileStone’s president and CEO. “We

l

Jimmy Dimanoff have built their com-

believe our product fills a tremendous

mainte-

Choice

pany the same way they build their

need for low-maintenance living at a

nance

dles combine

homes: with experience, honesty, an eye

very affordable price point.”

community,”

says

Martin,

o

a w

the MileStone Bun-

Paradiso Villas

Located off Parmer Lane between 620 and 1431

lifestyle,

the most de-

for detail, and a dedication to outstand-

Located on West Parmer Lane adja-

provid-

sirable

ing value. REALTORS can be sure that

cent to the acclaimed Brushy Creek

ing time

tions, making them available to every

when they turn over the keys to their

Park, Paradiso Villas offers a low-main-

to enjoy nearby shopping, dining, and

buyer at an affordable price.”

client, they’re handing over years of

tenance lifestyle, providing time to

entertainment. Also located in LISD,

Garrett and Jimmy are both focused

hard work, dedication, and an un-

enjoy nearby nature trails, cycling, ca-

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on providing a better home buying ex-

matched commitment to quality.

noeing, shopping, dining, entertain-

nity pool, expertly maintained lawns,

perience, from start to finish. They

ment,

the

and all exterior home maintenance pro-

make and stand by their commitments

bined 30 years of real estate experience,

award-winning Leander Independent

vided by the homeowner ’s association.

not only throughout the process, but

ensuring that they choose the very best

School District (LISD), Paradiso Villas

Affordably priced from the $130s, Cy-

throughout the many MileStones in a

locations for each community. That is

includes a private community pool and

press Creek townhomes range in size

client’s life. Thanks to MileStone, get-

evident in their two communities that

expertly manicured outdoor spaces.

from 1,282 sq ft to 1,939 sq ft, and in-

ting more no longer means paying

recently had grand opening celebra-

One and two story garden homes range

clude attached garages, lofts and tile

more. And that’s a MileStone REAL-

tions, which are Paradiso Villas and Cy-

in size from 1,203 sq ft to over 2,000 sq

entryways along with numerous other

TORS and their prospective home buy-

press Creek Townhomes. Both are

ft, with prices starting in the $150s.

distinctive features.

ers can count on.

found in prime locations in Cedar Park,

With beautiful stone and brick exteri-

“As REALTORS get to know Mile-

For additional information about

offering easy access to major highways

ors, these architecturally distinctive

Stone, they will notice that we do

these communities, visit www.MyMile-

and employers such as Dell and Cedar

homes include granite countertops, tile

things a little differently,” Martin says.

Stone.com.

Their background includes a com-

and

more.

Located

in

op-


24

www.realtylineonline.com

Realty Line of Austin

March 2010

Don Harvey, Terese Peabody, Bill Flood, Kathy Fulton and Sharon Rosshirt accept Presidents Club awards at the Stanberry & Associates company awards celebration held at the Phillips Events Center.

Laura Brown congratulates Jessica Bruehl for being the top closed volume winner. It was announce at the Keller Williams Realty Lake Travis awards breakfast.

Janis Arteaga of Mortgage IQ welcomes Jim Schlegel of Avalar 360 Realty to the first annual Mortgage IQ Expo held recently at The Commons Conference Center.


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Experts Speak Out

March 2010

realty line of austin

Commentary John McClellan

n

Supreme Lending

uidity. Investors stopped buying MBS, which

ing have already done so, which will lead to

cut off the flow of new money with which to

a large decrease in the number of refinance

fund new loans.

transactions for the year and, once again, re-

We know that the Fed is exiting its buying

TWO PREDiCTiONS fOR THE fuTuRE MORTGAGE RATE MOVEMENT— iS iT TiME TO “RiP THE BAND-AiD” Off?

I

have been talking a great deal lately

yield side, thereby raising mortgage rates.

about the Fed’s exit from its program

So, what does all this mean? Is it a truly

of buying mortgage-backed securities

black-and-white issue? Will rates jump one

(MBS). Over the last 13 months the Fed has

to two points in response to the Fed’s exit?

spent more than one trillion dollars—that’s

Well, let’s look at it from an alternative per-

$1,000,000,000,000—to buy these securities in

spective. Yes, it is true that rates will increase

order to drive up their price, thereby artifi-

with the Fed’s exit; however, we may see or-

cially keeping interest rates low. This pro-

ganic market forces keeping those rates in

gram has succeeded in keeping mortgage

check.

side and that demand should fall for MBS; but, if the Mortgage Bankers Association is correct that mortgage applications (closings) are going to be down for 2010, doesn’t it stand to reason that the supply of MBS for

duce the supply of MBS for purchase. The Fed is going to exit its program for buying mortgage-backed securities; and, as soon as this happens, we will see rates increase. However, once all the government in-

purchase will also fall? If supply falls in step

centives are gone from the market, we may

with or right behind the fall in demand, we

see a rebound in mortgage rates to the lower

may not see such a huge increase in rates as

side as supply comes into balance with de-

first blush would have us think.

mand. There are a couple of wild cards, how-

Now, let’s throw into the mix some of the

ever, that could derail my theory: (1) The Fed

other government incentives and look at the

has left the window open to getting back into

resulting timeline. Here is the way I see it

the market by making provisions that it may

panning out over the next 12 months: Because the homebuyer tax credit is set to expire this year on Jun. 30, I believe that anyone who is thinking of buying a home in the next

from time to time as the market warrants purchase more MBS to keep the market stabilized. (2) (This may be the biggest threat.)

12 months will use this window of opportu-

With the midterm elections this November

rates in a tight spread between 4.5 percent

The Mortgage Bankers Association has

nity to close before the tax credit expires. This

and as the bad news on the housing front

and 5.25 percent. The classic supply-and-de-

predicted that mortgage applications will be

means that any transactions that would nor-

reaches the media, the administration may

mand formula is to drive higher demand for

down 40 percent for 2010. If we understand

mally happen in the later part of the summer

create some other non-organic incentive to

anything and the price will go up. (Price and

the purpose of MBS, we will have a better

and early part of the fall will move forward

help spur housing once again.

yield are the inverse of each other, which is

understanding of what may happen in the

into late spring and early summer. Basically,

how mortgage rates are determined.)

next 12 to 18 months to keep mortgage rates

In this humble loan originator’s opinion,

we will be borrowing against future sales,

low.

it is time to “yank the Band-Aid off” and let

which means that demand between now and

Since the Fed is the biggest buyer of these

the market take care of itself. The longer the

securities, it constitutes a majority of demand

The purpose of MBS is to help refund the

for them. However, by the end of March the

market: Banks close on home loans with

Fed will exit this program, leaving the de-

available cash, convert these loans into MBS,

What does this mean for the second half

mand to organic buyers in the market. If the

and sell them to investors, thereby re-fund-

of the year? In my opinion, it means a huge

classic law of supply and demand holds true,

ing their coffers so that they can fund more

decrease in demand for housing and a de-

to, at the least, keep volatility both low and

we should see the price of these securities fall

home loans. In fact, one of the main problems

crease in the supply of available MBS for pur-

non-threatening. This is the question: Will

when the Fed exits and demand falls. This

that mortgage banks had at the onset of the

chase by investors. On a relevant note, most

they or won’t they?

fall in price will result in an increase on the

Great Mortgage Meltdown was a lack of liq-

homeowners who could qualify for refinanc-

Jun. 30 will be inflated and that demand in the fall will be down.

government tries to control the economy, the longer our healing time will be. As we can see, there are already fundamentals in place

Time will tell . . . [RL}


March 2010

realty line of austin

www.realtylineonline.com

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March 2010

4TH ANNU ANNUAL AL B BARTON ARTON CREEK TOUR OF HOMES Tour will feature 6 multi-million dollar homes including pocket listings.

Wendy Feeley of MileStone Community Builders gives Kevin Karos of RE/MAX Capital City a personal tour of the model at Paradiso Villas during the community grand opening.

Thursday, April 8, 2010 11:30 a.m - 2:00 p.m. Catered by Alfred’s Tickets: $15 Door Prizes

Mary Lindenberg,, Keller Williams Realty, 8210 Chalk Knoll Drive Lisa Foster & Susan Doyle, Doyle, Avalon Realty, 4800 Mirador Dee Shultz,, Keller Williams Realty, 2700 Maravillas Cove 5WUCP )TKHſVJ, Amelia Bullock Realtors, 8027 Chalk Knoll Drive David Pimentel,, Susan Anderson Properties, 8837 Chalk Knoll Drive Eve Kush,, Coldwell Banker United Realtors, 8637 Navidad

Priya Ram, Susan Jones, Peggy Sue Fuller and Link Fuller find a spot to have breakfast and support their fellow agents at the JB Goodwin REALTORS awards ceremony.

THANK YOU SPONSORS: PARTNERPROGRAM P ARTNERPRO OGRAM

John Squires of Keller Williams Realty and Donna Simmons of Gracy Title find there is standing room only at the annual Gracy Title forecast.

Tickets can be purchased online www.abor.com or Contact one of ABOR’s “Friends of the Foundation” All proceeds from this event will benefit the ABoR Foundation 501 3(c), a charitable organization that distributes scholarships, promotes real estate-related research and serves the community.

Susan Carter and Terri Romere take home the award for number one team at the Keller Williams Realty Round Rock awards banquet.


March 2010

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www.realtylineonline.com

e Best  the Best in 2009 Company awards

Congratulations to the “Stuart Sutton Team” on being named the “Company Sales and Listing Team of the Year.” Kevin McCauley and Stuart Sutton accept the Gold Platter award from J.B. Goodwin, right, at the company awards breakfast.

Leisa Ormsbee was named the “Company Listing Agent of the Year.” She was also recognized as the “Sales Agent of the Year” in the Williamson County office.

Northwest office

Curle Premier Team “Sales Team of the Year”

Turner Team “Listing Team of the Year”

Janet Dean “Sales Agent of the Year”

Robin Curle and Terry Hoff

Bettye Turner and Lynda Conway

with JB Goodwin and Buddy Schilling

Westlake office

The “A” Team “Sales Team of the Year”

The Bishop Team “Listing Team of the Year”

Adrian Grabe and Aubrey Shaw proudly show off the “Sales Team of the Year” award they received from JB Goodwin at the awards breakfast.

Jennifer Korba presents Linda Bishop with the “Listing Team of the Year” award at the annual awards breakfast. Not pictured: Matt Harris.

Dylan Everett “Sales Agent of the Year” and “Listing Agent of the Year”

Williamson County office

Leslie & Monte Gawthorp “Sales Team of the Year”

Norma Mantz Team “Listing Team of the Year”

Karen McGrath “Listing Agent of the Year”

Chris Sachs presents Norma Mantz with the Silver Platter award.

Gay Puckett was named the “Company Sales Agent of the Year” and she was also the “Listing Agent of the Year” in the Northwest office.

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March 2010

realty line of austin

AYREP’s Shannon Powers of ZIP Realty, second from left, welcomes Susan Spence, left, and Becky Hopkins and Amy Kobza, both of Austin Title, to the AYREP happy hour at the Common Interest.

Nelda Rodriguez and Thomas Cantalini, both of Century 21 First Place Realty, keep up with the changes in the mortgage industry by attending Expo 2010 hosted by Mortgage IQ.

The Keller Williams Realty Round Rock agents and staff pass go and have fun Monopoly-style at the awards banquet were they recognized top agents.

Kent Riddle of JB Goodwin REALTORS still makes it to the top of his class at the company’s 2009 awards breakfast.

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Experts Speak Out

Commentary

31

A: If the borrower requests an enhanced

loan program charges, such as VA, FHA,

owner‘s title insurance policy or an endorse-

Rural Housing Service, or state bond loan

ment to an owner‘s title insurance policy

programs. Processing or administrative

after the loan originator issues the GFE, the

services are part of “our origination charge”

fREquENTLY ASkED quESTiONS

loan originator may choose to treat such a

and may not be separately itemized. The

request by the borrower as a changed cir-

HUD-1 instructions for the 800 series ex-

cumstance. The loan originator may then

plain which fees go on which lines.

choose to provide a revised GFE to the bor-

Proper disclosure of the GFE up front has

PArT 1 OF 2

rower to disclose the increased charges. If

become a critical component of getting buy-

the increased charges do not exceed toler-

ers to closing on time. Last minute issues

ances, the loan originator may opt not to

with disclosure can lead to upset and con-

issue a revised GFE.

fused buyers. As long as the loan officers ac-

Latra Szal

W

www.realtylineonline.com

ith the new Settlement Statements and Good Faith Esti-

n

Gracy title

is this shown on the HUD-1? A: If the seller is paying for a service that

Q: What fees are to be recorded in the 800 series of the HUD-1, beginning on Line 804?

curately disclose on their Good Faith Estimates, closing delays should not occur.

mates in full force now, there

was on the GFE, such as Owner‘s title insur-

are still many questions about how to prop-

ance, the charge remains in the borrower‘s

A: When the loan originator selects the

As a tip to REALTORS, it is a good idea to

erly disclose buyer costs. Often it takes time

column on the HUD-1. A credit from the

settlement service provider, fees for third

contact the buyer’s lender the week before

to resolve these issues, which can delay

seller to the borrower to offset the charge

party settlement services that are required

closing to make sure all of the proper disclo-

closings. Below, please see the top five Fre-

should be listed on the first page of the

by the loan originator are recorded in the

sures have been made to the buyer. Not only

quently Asked Questions that have been

HUD-1 in Lines 204-209 and Lines 506-509,

800 series beginning on Line 804. These

does this help take care of the new GFE re-

asked of our escrow associates since we

respectively.

third party services and fees most often in-

quirements, it also helps make sure that the

began to use the new forms. Thankfully,

Q: If an attorney prepares loan documents

clude appraisals, credit reports, flood

Truth-In-Lending law does not create any is-

HUD has answered these questions and

for a lender, where does that charge go on the

searches, tax service, and governmental

sues for closing. [RL]

their exact answers are shown below.

HUD-1?

Q: Do loan originators have to provide a price for Owner‘s title insurance on the GFE?

A: Loan document preparation done on behalf of the loan originator is a processing

A: Loan originators must provide an es-

and administrative service in the origina-

timate of the charge for an Owner‘s title in-

tion of a loan and is included in the charge

surance policy in Block 5, (Owner‘s title

on Line 801 of the HUD-1, and may not be

insurance) on the GFE on all purchase trans-

separately

actions. For non-purchase transactions, the

3500.8(b)(1).

loan originator may enter _NA or _Not Applicable in this Block.

itemized.

See

24

CFR

§

Find out what’s happening in real estate. Visit our Calendar of Events page on our Web site.

Q: If a borrower was quoted a basic owner‘s title insurance policy, but requests an enhanced

Q: What if at closing the seller is paying for

owner‘s title insurance policy or an endorsement

a settlement service that was listed on the GFE,

to the owner‘s title insurance policy, should the

such as the Owner‘s title insurance policy? How

loan originator issue a revised GFE?

www.realtylineonline.com.


32

www.realtylineonline.com

realty line of austin

March 2010

Johnny Mynhier, far right, of Treaty Oak Homes gives an in-depth tour from the inside to the outside to agents who attended the recent REALTOR lunch at the south Austin community, Central Park.

Stephanie Powell, center, of Champions School of Real Estate, greets Jana McCool and Les Sherman, both of RE/MAX Austin Associates, as she arrives at the CRS meeting.

Susan Hershey and Pat Zahasky, both of Keller Williams Realty, and Candy Buzan of PrimeLending line up on Boardwalk at the Monopoly-themed awards banquet where top Keller Williams Realty agents were recognized for their achievements.

ABoR chairman-elect Judith Bundschuh congratulates Sandy Bednar of Distinct Austin Properties for earning the people’s choice award for the third year in a row at the ABoR Chili Cookoff, a TREPAC fundraiser.

Tommy Nelms of United Lending, Byron “Buddy” Schilling of JB Goodwin REALTORS, David McMillan of United Lending and J.B. Goodwin of JB Goodwin REALTORS congratulate all the winners at the annual JB Goodwin REALTORS awards breakfast after the conclusion of the awards announcements.

Phyllis Avery of First American Title, Brad Fulks of Capital City Sotheby’s International Realty, Tony Holt of Zbranek Custom Homes and Melinda Carroll of First American Title get the low down on the Lakeway housing market at a recent economic forecast. Gutter Girls Tiesa Hollaway and Bette Cook, both of North American Title, await their turn to bowl at the company’s second annual bowling and beer tournament.


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