Tag: austin

3 Popular and Affordable Home Improvements to Add Value in 2021

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Home improvement projects were all the rage during quarantine as more and more people spent time indoors. But the trend isn’t stopping yet. Many are taking advantage of the savings from lockdown and improving their home’s comfort. Discover Home Loans survey revealed that 58% of people are planning home improvement projects this year. 83% of those said a more comfortable home was their primary motivator. Here are the most popular and affordable home renovation trends for comfort this year. 

Bathroom Improvements

According to a HomeAdvisor survey, a bathroom remodel is the most popular planned renovation this year. The bathroom is a place we spent a lot of time in, so it must be comfortable, efficient, and practical. Modern toilets, faucets, and showerheads are aesthetically pleasing and also help conserve water and lower costs. 

The average bathroom remodel cost last year was $13,401, according to HomeAdvisor’s True Cost Report. While this may seem like a lot, this is more economical than a kitchen renovation that costs an average of $35,000. 

Interior Painting

HomeAdvisor reported that interior painting was the most popular project and the second most planned project this year. This project has an average cost of $2,007, which is the best inexpensive upgrade that significantly impacts the home. 

If you’re painting to sell your home, it’s best to choose neutral colors. Neutrals will work with any style and help the buyer visualize their furniture in your home. 

New Flooring

This popular and affordable project is the third most planned renovation project this year. It has an average cost of $4,680. Replacing old and worn carpet, tile, or wood will increase the home’s comfort and add a unique design feature. This is beneficial since it makes the home more attractive if you’re selling. 

If you need help choosing materials or what high return on investment projects to implement, contact me! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

 

What Fees Are In Closing Costs When Buying Property

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While everyone is most familiar with saving for a down payment when buying property, closing costs are almost just as expensive! Closing costs are the thousands of dollars spent on closing the deal when you purchase assets. They will vary depending on loans, taxes, and fees, but it is equal to about 1 to 4% of your property’s value. I’ll break down some of the fees included in closing costs. 

Loan Origination Fee

The loan origination fee is what lenders charge to set up a loan. This fee will cover courier fees, underwriting fees, appraisal costs, administrative fees, and more. While it will depend on the lender, it will be close to 0.5-1% of the loan amount.

Application Fee

The application fee will cover your application process for a loan, the cost of running a credit report, and additional administrative fees. Again, it will depend on the lender, but it typically ranges from $300-$500. 

Mortgage Broker Fee 

Closing costs are how brokers make their money. This is why it’s crucial to research brokerages when first looking for a lender. It will vary depending on the brokerage you choose but expect it to be between 0.5% and 2.75% of your property’s purchase price. 

Loan Fee

If you have a loan with the Federal Housing Administration, they will charge a premium of 1.75% of the loan amount. 

Property Tax

Property taxes pay for schools, road construction, fire and police departments, and local services. These are included in closing costs, and it can be as little as $500 to as high as $8,000, based on the area and the property. 

Homeowner’s Insurance

Just like buying a car, sometimes lenders will require homeowner’s insurance before closing. Depending on your coverage and premium, it can range from $800 to $1,200.

Title Search Fee

A property title search will uncover all available information about a property and is commonly performed during the closing process. Typically, the title search fee will be between $75-$200 but will fluctuate depending on your property’s value and the company you work with. 

Title Insurance

Title insurance will help you from a financial loss if there are issues in the title, and it can happen at any time during the buying process. It usually costs between a couple of hundred dollars to $2,000. 

 

If you need helping with the costs of buying property this year, contact us so we can get started! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

6 Kitchen Design Trends from New Products Coming in 2021

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Whether you’re selling, buying, or looking for ways to increase your ROI on a property, these new products this year will influence kitchen design. These products come from the virtual 2021 Kitchen & Bath Industry Show. Here are the ten kitchen design trends and the products that affect them. 

Engineered Countertops and Backsplashes

1. Light-colored marble looks

Light colors are in because they give a sense of cleanliness and optimism compared to dark colors. And this desire is sticking this year, which is why you’ll see many new collections focused on warm, welcoming whites with marble looks dominating. 

2. Concrete and other worn looks

In new engineered-surface collections, concrete-look and other worm styles showed up frequently. Inspiration for one collection was taken from industrial-style dwellings found in New York, Detroit, and London. 

Faucets

3. Touchless

Touchless appliances are taking off since people are now more than ever about how germs spread from surface to surface. Many faucet manufacturers are adapting and integrating a touchless option as a standard in their new lines. Some are even making it available in older styles. 

One style by Kohler is a voice-activated faucet. It can sync with Amazon Alexa, Google Home, or Apple HomeKit devices and can be controlled by voice commands. Most styles need a wave of a hand to activate the faucet. For those with voice commands, you can set up preferences in an app for temperature and the amount, and the faucet will fulfill the demand. 

4. Two-tone finishes

To find harmony in dark and light, two-tone finishes were the balancing solution. Many products balance rough and smooth textures, matte and polished finishes, and warm and cool tones. This trend doesn’t just apply to faucets either. Many appliances are also following a similar finish. 

Rohl’s new line of kitchen faucets allows for mixing and matching four finished for the spout, four finishes for the inner knob, and six finished for the outer ring for the knob. Several other companies now offer the stylish matte black and brass tow-tone combination. 

Appliances

5. Slim appliances

Several manufactures released a new line intended for small homes and apartments, rental properties, and empty nesters or retirees who have downsized. Miele’s new dishwasher offers a quick wash-and-dry option that only takes 58 minutes. Thor introduced a 24-inch-wide gas range oven and stove. Fisher & Paykel’s released a new 24-inch refrigerator with a bottom-mount freezer as a skinny solution. 

Cabinet Storage

6. Drawer and cabinet organizers

People have utilized inserts, rollouts, pullouts, and dedicated dividers in their drawers and cabinets, and manufacturers have noticed. Hardware Resources created a pullout with a magnetic knife storage insert. Wellborn Cabinet utilizes the pull-down option, allowing users to bring items in upper cabinets down to a reachable level. You grip the handle and pull for the shelves to swing out and down for access. 

 

If you need help implementing these technologies and products in your home or want advice on how it will impact your home value, contact me so we can get started! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

 

Important Factors to Consider When Buying a Foreclosed Home

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Foreclosures are often the investors’ go-to’s when they’re seeking a bargain-priced home or wanting to flip a house. And while they’re a solid option, foreclosed homes are very different from traditional resale homes. Let’s take a look at some of the important factors to consider when buying a foreclosed home.

The Dangers of Foreclosed Homes

While foreclosed homes can save you money, they come with baggage. Most foreclosures were not cared for properly and will require some work before becoming livable or sellable. This is common with vacant and abandoned homes, which makes up almost all foreclosed homes since the pandemic began. 

Foreclosures are sold “as-is,” meaning that the owner of the property will not perform any repairs on the property. Another challenge could be the legality tied up into the property. Sometimes foreclosure properties have liens or judgments filed against them. This is a claim for the home due to unpaid taxes, repair bills, and more. When that’s the case, you’ll need to pay these off before buying the house. 

How To Get A Good Deal

If you find a foreclosure property that catches your eye, here’s what you need to do next.

1. Get Pre-Approved for a Mortgage

Unless you have an all-cash offer for the seller, getting pre-approved is a crucial first step. All cash offers are appealing because they usually mean a quick close. 

A loan pre-approval letter shows the seller you’re qualified, prepared, and are a safe bet to follow through on the deal. As your real estate agent, I have a list of reputable lenders, and I’m happy to share that information with you.

2. Research

You’ll need to research the home and the area. You can investigate the house through property records found at the county clerk’s office, and you may be able to avoid paying for liens placed against the property. You’ll also want to look for any improvements to the home, its ownership and sales history, and its assessed value with the county.

3. Get a Home Inspection

A home inspection will help you better understand the property and its flaws. As your real estate agent, I can also help with evaluating the property. 

Once you have more information about the property, work backward to come up with an offer price. The rule of thumb for home flippers is purchase and repair costs should not exceed 70% of the home’s expected after-repair value. 

 

This is just the tip of the iceberg, and there are many more important factors to consider when purchasing a foreclosed home. Contact us today, and we’ll happily guide you through the process: (512) 721-1094 or dbrown@talkpropertymanagement.com.

 

4 Timely Home Design Trends for Rental Property in 2021

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If 2021 is the year you become an investor, or if you’re already one and looking for ways to increase ROI on your investment, these four home designs should factor into your portfolio decisions in 2021. With the pandemic, people are spending significantly more time at home, and this influences home layout preferences and needs. Here are some home design trends you should look for in your next rental property.

Separated Spaces for Multigen

Open floor plans are not as popular if multiple people are sharing the same living space. Homeowners are looking for areas to do work, place video calls, exercise, and learn remotely, and you can’t do that all in one room. Think of the chaos! This is especially true with the rise in multigenerational families sharing a home, where each individual needs space and privacy for themselves. 

Wood-grain Elements in the Kitchen

Increased time spent indoors is influencing home materials. Homeowners are craving the outdoors indoors, and this includes materials that are organic and natural. This home design ties interior elements to nature and can be accomplished by adding wood-grain cabinets and wood countertops. 

Outdoor Solitude

The backyard has become a break room of sorts for adults and children, so homeowners are looking for entertainment. The items that gained popularity during the pandemic are fireplaces, fire pits, patios and decks, screened-in porches, and outdoor kitchens. While an outdoor kitchen can be expensive, it can be as economical as adding an outdoor refrigerators and dining areas to your rental property. 

Smarter Bathrooms 

Touchless appliances and self-cleaning appliances gained traction last year in smart technology. Motion sensors for lighting and smart temperature control for bathroom floors are some ideas that can increase ROI.

 

Contact us today to begin your investor journey. If you need help deciding what home designs increase your rental property’s ROI, reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

10 Tips for Finding A Reliable Home Contractor

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A contractor is a crucial member of your investment team, so you have to make sure they’re the best and most qualified for the job. You need someone capable of keeping projects on budget and schedule. A good and reliable contractor will make your investments successful, and when a property is successful, you’ll see more money.

So here are ten tips to help you find a reliable contractor. 

1. Use a reliable source.

Ask real estate agents (hey, that’s me!) and other investors about their experiences with their contractor. This is the first source you should go to. Since they have had one on one experiences with the contractor, they’ll be able to go into specific details about the contractor and the job. Employees at hardware stores could be a source of knowledge as well. 

If you don’t have those networking connections, Angie’s List and Checkbook are reliable online services. Always check the Better Business Bureau website to ensure they’re legit and to see their score. It will show their customer reviews, customer complaints, BBB rating, and BBB accreditation. It will show you how long they’ve been accredited and an overview of the BBB rating. 

Online reviews are not replacing checking for references. Suppose there are many negative reviews over a long period. In that case, that should be a red flag but not one singular negative review.

2. Interview several contractors

Once you think you found a good match, interview them! You should interview at least five and ask lots of questions. You need someone with a specific skillset for investments. If a contractor only specializes in the kitchen or bathroom, then don’t ask them for a quote about anything outside their expertise. It’s a lot of work, so you need someone familiar with the investing process. From this interview, you’ll also be able to see the contractor’s approach, budget, timeline, and relationship with other contractors in the area.

3. Ask for references

To narrow down the choices after an interview, ask for references from previous clients. You’ll want to ask questions about how the contractor handled changes, the budget and timeline, and how they treated the job site. These are crucial answers you need before giving them your business. 

4. Ask for a formal bid or estimate.

ALWAYS review an estimate of the project’s cost before signing an agreement with a contractor. If you’re still choosing between a few, a bid could be a way to narrow it down. If you’re comparing offers, make sure each one includes the same materials and tasks, so it’s a fair comparison. In addition to the budget and timeline, talk with them about materials and possible subcontractors who might be brought on.

Acknowledge that plans change and repairs could be needed on the go, so be realistic with the bid as well. You could ask for a price with two or three scenarios and play around with what needs to be added and doesn’t. Be a smart investor and expect to spend 15% more than estimated to cover unexpected costs. 

If the price doesn’t work in your budget, you need to focus on the service they provide and then find a fair priced contractor in that subset. Cheap does not always mean a good contractor and vice versa. 

5. Verify their license.

Check that your contractor is legit and has the proper license from our local and state governments. Ask to see their license to make sure it is up to date or request a copy. 

6. Do a background check.

Again, check the BBB website for complaints and violations. Suppose your contractor doesn’t disclose legal issues before signing. In that case, you’re within your rights to ask or do the research yourself in our local court records and the Texas disciplinary board. Better to be safe than sorry, right?

7. Search for subcontractors.

Research what companies or service providers like electricians, plumbers, or carpenters your home contractor uses. Learn about this before to know more about the other vendors who will complete the project and the team.

8. Ask about insurance and permits BEFORE.

Nearly all renovating projects require a permit. So, a contractor will need to secure the proper permits, licensing, and insurance before taking a tool to anything. Find out which permits Austin, and the state of Texas require and check with your contractor. If you work without a permit, you’re violating local ordinances, and you are liable for the consequences if caught. Consequences range from fines to not having the work be inspected by the city once completed, which will cause problems when you want to sell. 

While acquiring a permit can slow down your project and be a pain, the correct permit will have your contractor following the law. A permit also confirms that a city official will inspect it to ensure it is up to code once the project is completed. It’s pretty standard for a project to start months after an agreement, too since contractors have consistent work and need to finish their current projects. 

For insurance, you’ll need to know what is covered by your homeowner’s insurance and what is covered by the contractor’s insurance. I recommend getting a copy of the contractor’s insurance policy. 

9. Draw up a contract.

Now that you have chosen a contractor, create a contract that covers the project’s details like budget, timeline, detailed list of building materials, and all subcontractors’ duties. The contract should also include ground rules like the hours for the contractor to work on the property, what kind of notice you’ll get, what bathroom workers will use, where they’ll park, and what will be cleaned up at the end of the workday. 

If something comes up during the project, ask to sign an addendum and see a new project estimate that includes new work, materials, and cost. 

10. Be smart with payment.

Naturally, contractors ask for an upfront payment that will go to their total fee before beginning work. The most common advice is not to pay more than 10% of the price for an extensive renovation project. But smaller upgrades with custom work could require a 30 to 50% upfront payment. 

Only pay the rest of the fee once the project is completed. The price should be clearly outlined in your contract. The schedule should be updated each time a problem arises or a new repair is needed.

These are my tips to help you build your investing team. But it’s essential to be realistic as well, so you’re not a “nightmare” customer for them. After all, it’s just one person or team, and they can only do so much. If you follow my tips, you should find one superhuman to help you real your investing goals! If you need a real estate agent on your investing team, I’m here to help (512) 721-1094 or dbrown@talkpropertymanagement.com. 

Photo by Milivoj Kuhar on Unsplash

How TALK Property Management Can Help Investors Reach Their Real Estate Goals for 2020

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A new decade means new opportunities and new investments to be made. 2020 is the year you can make a big change and see huge results. It’s never too late to add some simple additions to your New Year’s resolutions and set achievable real estate goals to set you up for the next decade. We’re here to help keep you on track and set you up for success!

1. Expand Your Horizons

Just as the times change, so do trends in the market. Investing in real estate allows you to learn so much about a variety of topics and makes you a well-rounded person, but it’s never too late to expand your vision and learn something new. Ask questions about a real estate investment type you’ve never tried, research short-term rentals, or dig into where the next up-and-coming neighborhood will be. If you need help researching, don’t hesitate to give TALK Property Management a call.

2. Focus on Time Management

The more investment properties you have, the larger your scope of responsibilities to take care of your tenants and maintain the property. As your portfolio and the number of properties you invest in grows, it becomes more and more important to build a team you trust to help you spend your time wisely. With TALK Property Management, we help you take care of all the day-to-day duties of owning a property and come with a great team you can always rely on.

3. Stay Informed

You never want to lose touch on how your properties are doing, what the current tax exemptions are, or any coming changes that could affect you. When you partner with TALK Property Management, we always keep you in the loop, and we’re never more than one phone call away to answer all of your questions.

If you’re curious about the services we offer to help anyone investing in real estate, check out our About Us page. We’re here to make sure your real estate investment is a success, so let’s get 2020 started off on the right foot! Give us a call at 512-721-1094.

A Look Back at Austin’s Construction Projects Throughout the 2010s

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Since 2010, there have been a ton of new projects and developments springing up throughout the city. With the start of a new decade almost upon us, we thought we’d take a look back at some of the buildings that weren’t around to add to our skyline just a few years ago.

The Austonian
From 2010 – 2018, this was Austin’s tallest building. The Austonian was the true start to showing how important and lucrative high rise residential buildings can be in Downtown Austin. The skyline wouldn’t be the same without the 683 feet condominium tower.

The Independent
In 2019, the Austonian was usurped in height by the Independent, standing at 690 feet, the building became the tallest in Austin and the tallest all-residential building in the United States west of the Mississippi River. The unique design is always brought up in architecture talks for its Jenga-like look.

Robert B. Rowling Hall
The University of Texas campus is beautiful and has a huge impact on the city year after year, but the new graduate business facility is an even bigger fixture. The 497,500 square-foot building connects to the AT&T Conference Center and Hotel.

Northshore
The 424-foot building has 38 stories, 439 apartments, and is a quintessential mixed-use development. The building comes with a private lounge, pool, concierge, and a variety of great amenities.

70 Rainey
The last ten years have brought particular change to the Rainey District. The tallest of the new towers to the historic Rainey Street is 70 Rainey, and it’s sure to be one of many luxury buildings to connect Rainey to the rest of Downtown.

The last decade has brought a variety of changes, and we know the next ten years can really evolve the city dynamic and skyline even more. If you ever have questions about where we see Austin going and what the changes can bring for your investment properties, don’t hesitate to reach out to TALK Property Management at (512) 721-1094.

5 Real Estate Investment Property Red Flags

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There are a lot of excellent investment properties out there, and while there are some factors that make a property great, there are also some red flags that may help you narrow down which ones you should avoid altogether.

  1. Is the floor plan functional?
    If a home is listed as a four-bedroom home, you want to make sure that all four bedrooms are adequately sized. If one bedroom is particularly small or awkwardly shaped, it may be hard for you to find tenants for that space. You’ll also want to consider the number of bathrooms. It’s unlikely that you’ll find tenants ok with sharing a four-bedroom home with only one bathroom.
  2. What neighborhood and school district does the home fall in?
    No matter how beautiful the home, if it’s in a bad neighborhood or zoned for a school district that doesn’t have a great reputation, you’re going to have a hard time finding tenants. Is the area in a high flood zone, close to loud businesses? These are all factors you’ll want to look into.
  3. Are there structural issues and damage to the property?
    Pay attention to if a property has uneven floors, cracks on exterior walls, etc., as this can be a sign that there are bigger problems with the structural integrity of the home, which can be costly to fix. You should also be looking for roof leaks and checking under countertops and sinks in the bathroom and kitchen for signs of water damage and mold, as this can be another sign that there are major repairs that need to be made.
  4. Have you been asked to waive your right to inspect the property?
    We can’t stress this enough. If a seller asks a potential buyer to waive their right to inspect and back out of the deal if they don’t like what they see, turn tail and run. This is a huge sign that something isn’t right with the property. It’s common for a seller to sell a property as is without making any repairs, but it’s not common to ask a buyer to lock into a deal without an inspection.
  5. Are you being met with resistance to see the inside of the property?
    If you’re having trouble nailing down a date and time to see a property or are even being kept from checking out the whole property, it’s a big sign that the seller is hiding something. The golden rule to live by: Never buy an investment property without seeing 100% of what you’re getting into and after receiving an inspection that gives you an idea of what the property will need maintenance-wise.

If you still have questions on investment properties, don’t hesitate to reach out! We’re more than happy to share some of the knowledge, tips, and tricks we’ve picked up over the years to make sure you make and maintain a great investment.

The Domain is Going to New Heights!

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It is said Domain Tower 2 will be 24 stories and have 330,000 square feet of office space. This second tower is a continuation of the plans to make The Domain Austin’s second “downtown” hub. As huge technology companies are seeing a need for larger space in close proximity to amenities they can offer to employees, construction companies are meeting those demands by expanding The Domain.

Overall, The Domain is about 300 acres of land split amongst a variety of offices, retail spaces, and residences. There are more projects coming soon, including a 20-story, 345,000 square-foot Domain Tower 3, and a proposed 22-story Domain Tower 4. The plan to continue development of The Domain includes a 15 phase plan, and Domain Tower 2 is just one step in the overall goal of bringing 3 million square feet of class A office space, 2,500 multifamily units, 50,000-square feet of restaurants, and a hotel to the area.

While no one has yet signed on to take over the office spaces in Domain Tower 2, there’s no doubt there will be a variety of companies interested due to its great location and competitive markets. The demand is strong and only continues to grow in this area. If you’re curious about how the area in North Austin has changed with the expansion of The Domain, give our team a call. We’re happy to give you a glimpse into how the area has changed and how it will continue to do so in the coming years.