The recession is over and it's a good time to buy real estate.

So writes Michael Murphy of MarketWatch here. He makes a compelling case, offering up three reasons:
1) Distressed sellers;
2) Lack of competition; and
3) Lowest rates ever

However, the debate is predicated on the market hitting the bottom in your local market.

I don't think Austin, TX has reached the bottom yet. Which markets have reached bottom?

Distressed Properties - Deal or Disaster?

I had a conversation recently that made me think this topic might interest many of you: Buying a distressed property as a primary residence or investment property. The news is pretty ugly and bank repos are increasing, yet confusion concerning these types of sales is common, namely in three areas:

1) Distressed properties are always a value;
2) Distressed properties should be avoided at all costs;
3) Short sales and foreclosures are the same thing.

The rules are simple, distressed or not: Determine what you want from a property before narrowing down options. The goal is to have the property meet your needs, not the reverse. After this, it’s really two steps: 1) Learn the fair market value of the property and 2) hire an expert to estimate repair and upgrade costs. Know what you’re getting into, don’t force a fit.

The most common distressed properties are foreclosures and short sales. What‘s the difference? Foreclosure occurs when the lender takes the home from the owner for failure to pay the mortgage. A short sale occurs when the owner is attempting to sell the home for less than the mortgage and sales costs combined. The lender must accept the lower amount to complete a sale.

Short sales require patience, with decisions made over 3-6 months on average. Also, some owners inflate the price of a short sale in order to reduce their financial liability. Foreclosures work like most sales – one decision maker, like a bank. Often, a bank will accept about 90% of the listed price if not in a multiple offer situation. As days tick by, banks are much more aggressive with price reductions. Something to keep in mind.

Need more information? Give me a call.

Referrals! Please, if you know someone who is interested in buying or selling a home, call – (512) 459-3400 – or email me today. I’m never too busy for your referrals.

www.crowehomes.com

www.twitter.com/crowehomes

Austin's Greatest Hits

If you visit Austin, there are many great things to do. As with most cities, food is a big deal. I've put together a quick list of some favorite places. Need links? Contact me and I will pass along.

Top Austin sites

• Finish a Don Juan Taco at Juan in a Million
• Order the Migas at Cisco's
• Enjoy Tacos at Guero's
• Eat at any Maudie's
• Walk up the stairs at Mt. Bonnell
• Walk or run Lady Bird Lake trail on a nice day
• Attend the Zilker Park Kite Festival
• Walk 6^th Street on a weekend night
• Attend a show at the Paramount Theater on Congress
• Enjoy a drink and the view at the Stephen F. Austin balcony bar
• Tour the Texas capitol building
• Watch the sunset from Oasis Restaurant on Lake Travis
• Get your music and food fix at Threadgills
• Hit the Alamo Drafthouse for movie + food/drinks
• Visit Ginny's Little Longhorn on a Sunday (ask a local "why?")
• Buy music at Waterloo Records
• Shop (or walk the aisles of) Central Market and/or Whole Foods
• Watch a show at the Continental Club
• Eat lunch at the Trailer Park
• Drive to Lockhart for BBQ (pick a place, all are great - Chisholm Trail, Kreuz's, Smitty's, Black's)
• Hike/bike the Greenbelt