Friday, March 28, 2008

Looking for a Hill Country Realtor? Reasons why you should choose GMAC Real Estate Fredericksburg

By Greg Oehler, Broker/Owner of GMAC Real Estate Fredericksburg

This post is from GMAC Real Estate Fredericksburg's real estate blog The Burg. To read more Fredericksburg real estate news, analysis & insight, visit The Burg online.


I like Fredericksburg! I like the people, the visitors, the quality of life, the sense of pride in the community, and our historical legacy. I was born and raised here and have lived here most of my life.

I feel like my office is an integral part of the community. All of my agents are from here or the surrounding Hill Country, and we know the area pretty well. Given that background, here are some reasons why I believe you should come to GMAC Real Estate Fredericksburg for your real estate needs.

We know the local real estate market

You may hear that from a lot of Realtors who have a computer and pay their MLS dues. But our home-grown agents do not just tell you what you want to hear, they tell you the facts.

Some sellers just want their ego stroked when they get ready to put a property on the market, and we can do that if you like. But, we are still going to tell you the market facts—like what similar properties are actually selling for—and then you can make an intelligent decision to sell or buy.


We price your property fairly

GMAC Real Estate Fredericksburg

Our agents look at what has sold recently relying most heavily on “Sold” comparables as our best source of integrity in the numbers. We also look at competing listings to understand how well the subject property would do with those currently on the market.

If two properties are priced the same but one has more features and benefits, the market will usually beat a path to that one first. We do not try to win listings by “buying the listings,” that is, telling the seller a high price just to sound good. We see that often times when a listing has been “bought” it leads to unpleasant feelings between the seller and the Realtor.

No one has a crystal ball and no two homes are exactly alike, so there can be room for error; however, we do our best to give sellers a realistic price range.

Higher than realistic List Prices can also lead to a problematic situation we call “following the market down.” We see people marking their price down, then down again and again over a long time. They are so afraid of leaving a nickel on the table that they lose sight of thousands of dollars of holding costs. Ultimately, they might have come away after the sale with more money if they would have sold immediately at a lower price.


We market your property

Our multi-faceted marketing strategy places your property in front of as many buyers as reasonably possible! We do this through the MLS (multiple listing service), the Internet, the local newspaper, regional magazines, and our storefront window on Main Street where dozens of people walk past on the way to downtown Fredericksburg shopping every day.

Almost any Realtor can put your property on the MLS, right? Yes, but be careful. Some sellers have their property on the MLS with misinformation such as incorrect directions, poor quality listing photos, and in some cases on expensive properties in excess of one million dollars, only on or two photos!

In other cases we have seen the listing categorized incorrectly so other Realtors have a difficult time trying to locate it. We cannot make the market pay more than they will bear, but we can get you properly positioned in the marketplace to take advantage of what market is there.

We know how to get your property exposed to thousands of people using several popular websites including Trulia, Zillow, Oodle, Yahoo! Real Estate, and several more. It seems that as much as 80% of the market begins their search for property online, so it is important to be in front of them.


We have the experience to guide you through the entire sale process

GMAC Real Estate Fredericksburg will strive to sell your property

We have been a fixture in Fredericksburg real estate for 14 years. Several of us have been licensed since the 1970s. While we still learn things about real estate every day, we have seen quite a few sales in our experience. We know what to expect in the buying and selling process and can offer you the benefit of that experience. Outside experience that can help you:

  • I have an extensive background in real estate finance. I know both sides of the lender’s table. I also have had a lot of experience with commercial and large acreage properties. View Greg’s bio and contact information
  • Willie has extensive experience in accounting. He also has had extensive experience in commercial and residential properties. View Willie’s bio and contact information
  • Dock has had extensive experience in ranching and acreage properties. Dock has also owned other businesses and can offer his expertise in several of those. View Dock’s bio and contact information
  • Sheila was a math teacher in Austin. You can count on Sheila for the number side of your transaction. View Sheila’s bio and contact information
  • Don’s background was in coaching and real estate. He has helped clients by “coaching” them to stage the home a little better for showing and having them do the repairs to better position the home. View Don’s bio and contact information


We are part of the community

Agents in our shop have been members of, or belong to, various civic groups and churches, including the following:

  • Good Samaritan Center for the underprivileged in need of medical care
  • Local hospital boards and foundations
  • Various City and County governments’ boards/committees
  • Various School Board committees
  • Various churches, church leadership organizations, and youth leaders
  • Local soccer organization for children
  • Art and photography clubs
  • Various historical organizations
  • Leadership Gillespie County
  • Leadership positions in our local real estate board, including two past presidents
  • Leadership role in Texas Association of Realtors Region 7
  • Leadership in the county Economic Development committee
  • Chamber of Commerce members in Fredericksburg & Stonewall


Keep reading our blog

We will continue to keep you updated on the market conditions in Fredericksburg on this blog, so keep checking back with us periodically. If you want, you can subscribe to our email updates, which will send you an email whenever we have a new blog post.


Put us to the test

We want your business and we have the experience and the capability to properly position your property in the marketplace. The Realtor who simply tells you what you want to hear is not necessarily your friend. Make them show you the facts, or just come to GMAC Real Estate Fredericksburg and get them straight away. Contact one of our skilled agents about how we can help you today. We can sell your property!


Read Greg's agent bio.

Greg can be reached by cell at (830) 456-3622, at the office at (830) 997-6123, or by email at Greg@fbgliving.com


To read more articles like this, visit
The Burg at www.TheBurgBlog.net

Tuesday, March 25, 2008

The number of homes for sale in Fredericksburg is on the rise, making it a great time for buyers!

By Greg Oehler, Broker/Owner of GMAC Real Estate Fredericksburg

This post is from GMAC Real Estate Fredericksburg's real estate blog The Burg. To read more Fredericksburg real estate news, analysis & insight, visit The Burg online.


As I mentioned previously, I like shiny pennies! There are shiny pennies in Fredericksburg residential properties, too. I think it is a good time to buy, and some of these homes are very reasonably priced. I spent more time gleaning the market for those shiny pennies again and I want to summarize what I found in our local market.


155 Homes for sale in the city limits of Fredericksburg (on 3/21)
$343,917 Average LIST price of all the homes available in Fredericksburg
63 New listings since the beginning of 2008
27 Residential properties SOLD since beginning of 2008
$121.26/SF Avg price/SF of those SOLD year-to-date
41 Active listings priced at $200,000 and less
$161,444 Avg LIST price of the homes under $200,000
$6,619,000+ Total dollar amount of inventory of houses under $200,000
13 Lucky listings priced from $60/SF to $118/SF
4 Homes that fall into my shiny penny list


The homes that fall into my shiny penny list are good homes priced from $60 to $115 / SF which I consider to be reasonably priced and waiting for someone who wants to make a good buy. Some need a little work, but you could very likely live in any of them just as they are, or do a little updating and still be in them for a reasonable cost. Contact me if you'd like to get more information on these four 'shiny penny' homes. Or search for shiny pennies yourself on the Fredericksburg Multiple Listing Service.

Sales in Fredericksburg during the last half of 2007

There were 82 homes sold to date for an average of 13 - 14 sold per month and at an average price of $146.10 per SF. Here is what makes my shiny pennies shine:

  • $146.10/sf = Avg Sales Price / SF of homes sold in last 6 months of 2007
  • $121.26/sf = Avg Sales Price / SF of homes sold YTD thru 3/21/2008
  • $60 - $115/sf= Avg List Price of my 4 shiny penny homes!

See what I mean? It really is a good time to buy the right home! There is a decent inventory of homes under $120/SF and interest rates have once again been reduced. During the last half of 2007, we averaged 13+ homes sold per month. So far this year, we are averaging about 10 homes sold per month. Our market is becoming bloated because we are getting more than twice the number of new listings as we are selling during the same time period (63 new listings YTD, 27 sales YTD).

Absorption Rate in 2008

Based on our current absorption rate, approximately 10 sales/month, Fredericksburg has in excess of a 15 + month supply of residential listings. This situation can change rather quickly, but it sure makes for a great season for Buyers on the hunt. The first quarter of the year is usually the slowest part of our selling cycle. There are some anxious sellers in the market and the interest rates are very attractive.

IT’S A GREAT TIME TO BUY!!


As I mentioned, this list can change at any time as Sellers change their prices, sell or withdraw their property, or as new listings become available at better prices.


Read
Greg's agent bio.

Greg can be reached by cell at (830) 456-3622, at the office at (830) 997-6123, or by email at Greg@fbgliving.com


To read more articles like this, visit
The Burg at www.TheBurgBlog.net


Wednesday, March 19, 2008

New location - Paragon Property Group



Paragon Property Group is pleased to announce their new location at 200 Main Street in Marble Falls.

Sue Ellett and her Team, Ginger McGill-Sofia, Jaime Ulmer, Carol Uranga and Natalee Pertile, have opened a "Mega-Agent" office due to their Top Producer Status in the Keller Williams Lake Travis/Highland Lakes Market Center.

Every agent on the Team is a Certified Luxury Home Marketing Specialist which, according to Sue, makes them uniquely qualified & gives them an edge in the market for both Buyers & Sellers, regardless of price point. "Our commitment to continuing education and superior marketing reflects our desire to provide our Clients with an exceptional real estate experience.'

You can contact the Group at 830-693-5400 or online at www.ParagonPropertyGroup.com.

Tuesday, March 18, 2008

2008 shaping up to be great year for buyers in Fredericksburg

by Greg Oehler

One thing about the Fredericksburg real estate market, it is constantly changing! I checked our MLS (multiple listing service) for Gillespie County and found the following points of interest:

  • We have some 800 + Active Listings, that is, inventory for sale not encumbered with a contract. This spans all types of real estate, not just residential.
  • We have some 260+/- Active Residential Listings with prices ranging from $33,500 to $3,200,000. The Average List Price is $474,846.

  • We are towards the end of our slowest part of the annual selling cycle. Since January 1, there have been some 146 +/- new listings. Five (5) have gone Under Contract with or without contingencies.
  • While this period is generally regarded as the slower time of the year for us, the number of new listings is outpacing the number of sales.
  • In the last 90 days (11/27/07 to 2/27/08), some 66 +/- listings have expired (an average of 22/month).
  • According to our local appraisal district, the number of sales transactions peaked in 2005 and 2006. While there were fewer sales in 2007, the average sales price per square foot of livable area was almost $167/SF, a more than $39/SF increase over 2006.

Given this data, 2008 is shaping up to be a great year for buyers in our area! We are identifying “shiny pennies” now. That is, wonderful buying opportunities for those interested in moving to Fredericksburg. Contact us or contact one of our agents to find you a "shiny penny!"

Keep checking back with us for more market updates! The easiest way to do this would be by subscribing to our feed. You can subscribe for updates to come to your news reader or to your inbox.

Is it the best or worst of times for Fredericksburg real estate?

by Willie Gold

When I look at the real estate market today, I am somewhat reminded of Charles Dickens’ opening line in his book, A Tale of Two Cities, “It was the best of times, it was the worst of times.”

This, however, needs to be tempered somewhat, it isn’t the ‘best’ or ‘worst’ of times, but it’s not too bad here in Fredericksburg, especially if you are a buyer, a patient buyer, and to some extent if you are a patient seller you should also be ok.

What is happening in today’s real estate market is similar to the real estate meltdown of the 1980s when home and land prices fell, and foreclosures dominated the landscape.
I was in real estate in Houston at the time and I saw home and land prices, driven by hype and speculation, go up to heights that everyone seemed to know would not be sustainable, but continued forward nonetheless. And sure enough like a house of cards, it all came tumbling down.

There are some out there today that will try to paint a rosy picture about our present market here in Fredericksburg. But they can use all the smoke and mirror tricks they want, it doesn’t change the fact that we are in a down market here, it may be mild, but it’s down nonetheless.
Consider the Dow Jones Index at 11,893, down 2387 points since November 2007 where it had a yearly high of 14,280, and the number of home sales in San Antonio down 17.3% for 2007 as compared to 2006 (1).

Nationwide, the current inventory of homes is such that it would take 9.9 months to exhaust, the longest period in 26 years (2). These facts will have an effect on our local market.
Recently the Gillespie County Board of Realtors was provided with sales figures put together by David Oehler, the chief appraiser in the county. He had a number of charts showing details of real estate activity in the county, some going back to 1986. Two of the charts were especially interesting.




One chart (the chart above labeled "GCAD Warranty Deeds") showed the number of warranty deeds (a measure of real estate transactions) filed at the courthouse in 2007 dropped to 886 as compared to a peak of 1,253 in 2006, a decline of 30%. This was at a time when the average price per square foot of home sales rose from $127.52/sqft in 2006 to $166.66 in 2007, an increase of 30% (3) (Refer to the chart below labeled "Average FISD Home Sales Price per Square Foot.")






See a correlation here? It may not necessarily be linear but there is, in my opinion, a real cause and effect linkage between the two. Also, in information provided by Brian Jordan with the City of Fredericksburg, he advised that the number of home building permits declined in 2007 to 58 from 102 in 2006.

What should I do if I want to buy or sell in Fredericksburg today?

Buying? Be patient. In my opinion, I don’t think we will see prices fall to the extent they did in the 1980’s. But you need to watch for prices that are based on real value. Compare asking prices with recent sales, not 6+ months back. Don’t wait for everything to go into foreclosure; I don’t think it will happen here in Fredericksburg. There will be some foreclosures, but the best thing to happen will be a marketplace with fairly priced homes and land.
Shop wisely and check out recent sales. Don’t wait around too long, you will be depriving yourself of a home to live in and enjoy, which should be your main purpose for buying a home, not solely as an investment, although it will serve that purpose also.

Selling? Don’t be tempted by tales of high prices. This is the ‘Theory of Rising Expectations’ you read about in Economics 101. Know the facts. A fair market price is based on sales, not what you would like to get, or what your neighbor is asking, it doesn’t work that way, especially in a buyer’s market.
Most buyers are smart and apply what we refer to as the “Rule of Comparative Selection” summed up by the saying ‘getting the most bang for your buck’. Follow well qualified advice in determining a fair market price for your home. Don’t wait around too long for prices to rebound.

Based on the figures provided by David Oehler - mentioned above - the average price per square foot of homes in Fredericksburg in 1986 was $43.42/sqft. Adjusting for an average 4% inflation rate, I estimated that it took 10 years to get back to that price. It was 1996 before the average price reached $64.63, or an adjusted price of $44.59 (3). So if you have owned your home for over 3 years, you probably have a good margin of profit in it.
Contact me at (830) 997-6123 or by email, I would be happy to discuss your needs, no charge, no obligations.

Willie Gold is associate broker at GMAC Real Estate Fredericksburg. Click here to read his agent bio.