The Gibbs Team

512-431-2403

Mary Lynne Gibbs

By

RRS: TIMES HAVE CHANGED, AND SO HAVE HOUSING PRICES!

By Mary Lynne Gibbs • 2018 Director

It was May 23, 1973, when my parents closed on their home and our family moved back to Austin. The final sales price was $34,582.75. Wow, how times have changed since my teenage years.
  Fast forward to May 2018, when the Austin Board of Realtors reported the median price of a home in our city at $389,000, a figure fewer and fewer can afford.
   Recently I attended a mid-year economic forecast with speaker David Tandy, president of Texas National Title, who stated that if home prices continue to increase at 5 to 7 percent per year, combined with our population growth, then affordability challenges will continue, and rentals will grow.
     As REALTORS we all are feeling this impact and realize that more and more of our first-time home buyers are seeking housing on the outskirts of Austin due to affordability. The challenge for them is often whether to accept a longer commute into work or trade off with less square footage closer in.    
   Affordability also is taking a hit due to interest rates, which had been historically low but are now rising. Communicating this shift with our buyer prospects may encourage them to act more quickly to enable them to benefit from homeownership sooner rather than later.
   While native Austinites who have witnessed home prices skyrocket may feel as though housing affordability is diminishing, Austin is reasonable when compared to the national market. According to PayScale, our city is 3 percent below the national average cost of living and the cost of housing is 15 percent below the national average.  
   “In many other large cities, the cost of housing is well above the national average, regardless of the overall cost of living,” according to PayScale. “It’s no wonder that Austin is one of the most popular cities in Texas.”
 So while home prices have risen astronomically over the past 45 years, smile and realize it could be worse!

By

RRS: TAKE GREAT CARE WHEN SELLING DIVORCED LISTINGS

By Mary Lynne Gibbs • 2018 Director

Closings are typically the time to celebrate and are often topped off with champagne. This is not always the case when couples are divorcing. Our fiduciary duties as professionals are to put our clients at ease; making sure to treat both spouses or soon to be ex-spouses equally. Remain neutral, avoid giving relationship advice, remember you are not a marriage counselor, but have a willingness to listen.

The closing may be the final act in dividing assets in a settlement agreement. Separating marital assets should be left in the hands of your clients and their attorneys. Remember REALTORS shall not engage in activities that constitute the unauthorized practice of law as per the Code of Ethics. Obtaining a copy of their divorce decree, open communication with their attorneys and the title company will help ensure a smooth transaction. Utilizing your title resources for a preliminary closing disclosure or estimated net sheet when taking the listing will allow transparency and prevent surprises at closing. Ask your clients how they would like to be communicated with and copy both on all correspondence. A “paper trail” is always a good habit so nothing gets lost in translation.

Divorcing couples with children can be the hardest. Paying extra special attention to them will brighten their day. They of course did not wish for these changes in their lives. Will both parties be able to purchase or only able to lease? Is there damaged credit? Housing may be smaller and less affordable based on one person’s income. All these things are to be taken into consideration.  

The house was once filled with memories, dreams and traditions; the adjustment to change can be very emotional. One spouse may have moved on in another relationship and the other one remaining in the house may have a lot of anger festering with additional responsibilities such as having the house on the market and keeping it show ready. Some tips to help with the sale may be to incentivize the seller with offering housekeeping services paid by the party that is ready to get the house sold or offering financial gain for a good showing.  

Scheduling separate signings at closing may be best for some and less stressful. Divorcing couple representation can be twice as much work and double communication yet certainly worthwhile. 

By

RRS: TINY HOMES APPEAL TO BUYERS IN ALL GENERATIONS

By Mary Lynne Gibbs • 2018 Director

When my daughter Kelly shared her interest with me to own a tiny house, I thought, “what was she thinking?” Why would someone have that desire and was this a fad? She explained how these homes are more environmentally friendly and offer a simplified lifestyle. As I began to educate myself about this whole tiny home craze, I decided to do some research on this concept and discovered there were several factors that folks take into consideration when looking at this as their best housing option. Footprints, efficiency and affordability are top on the list of benefits to buyers. Having a smaller footprint will in fact allow one to be more conscious in acquiring items that are not necessary and become more efficient in living a minimal lifestyle. Keeping in mind the size of the space will lead to lower utility bills when it comes to heating and cooling which will give way to freeing up financial assets. Investing in a home versus renting is always a smart option and a small house will give an affordable pride of homeownership.

Thinking this is just a generational thing? Think again. As I developed conversations with other fellow REALTORS, I discovered it was a desire of folks from every generation. A colleague shared with me this photo of what she described as a “Granny Flat.” It is a small French 17th Century stone cottage. She targets tiny houses as a part of her marketing plan on social media.
Tiny House Hunters on HGTV have several episodes that offer a wide variety of styles from contemporary to rustic. They also show the value of being mobile with an ability to move easily.

Mobile Loaves & Fishes’ Community First Village has a 27-acre master-planned community for transforming and supporting our homeless men and women. They provide 140 micro homes to their residents offering a hand up as they transition back into society. What an impactful cause and generous concept.

Texas has been ranked at the top of the “Best Places to Build A Tiny House” list. Austin specifically is home to Constellation ATX which features over 100 lots for tiny homes, Village Farm is slated to have 150 home lots and Kyle has a tiny home project tentatively named Stage Coach coming to the area with 400 lots. Based on the many developing communities nearby it is a good indication that these housing options are a desire of our consumers in the real estate industry and seem to be the latest trend and not fad.

For more information about upcoming luncheons, events or becoming a CRS designee, like us on our Facebook page: Texas Central RRC Residential Real Estate Council.

By

RRS: NEW ADVERTISING NO NOS

By Mary Lynne Gibbs • 2018 Director

Are you like me looking at updating your business cards and signs to comply with the new TREC advertising rules? These rules will be effective starting on May 15, 2018.  Don’t forget to include checking your e-mail and business website.

“Remember if or when a complaint is filed against you, enforcement will look at everything. This includes the broker’s name and size in all your advertising including your e-mail. Information about brokerage services above signature…everything,” says Avis Wukasch, Texas Real Estate Commission chairperson.

If you have taken the most current Legal Update in 2018 you most likely are already familiar with these rules. If not, be sure to educate yourself by attending a class or watch the one-hour online town hall event from Feb. 22, 2018. Doug Oldmixon, executive director of TREC explains everything you need to know on the Youtube video or read the advertising rules on the TREC’s website at www.trec.texas.gov/article/trecs-advertising-rules-what-you-need-know.

There is an excellent article that gives examples of advertising which is acceptable in the January/February 2018 Texas REALTOR Magazine. Some of the highlights include:

TREC requires you to provide a link to the Consumer Protection Notice and a completed Information About Brokerage Services notice in a readily noticeable place on the homepage of your business websites. The term “business website” means a website, including social media, that is accessible to the public, has content controlled by the license holder and has information about the license holder’s real estate business. For social media accounts, the links may be in the account’s profile or on a separate page or website through a direct link from the social media platform or profile.

Just remember your broker will be responsible for making sure your advertisements are complying. If you have any questions, know that they are a valuable resource to you.

Thank you to all of you who supported our RRC and WCR TREPAC Cake Auction. We had a record-breaking year and raised more than $9,000. Great food, networking and fun were had by all.

By

CRS: CODENEXT WILL IMPACT OUR LIVES FOR DECADES TO COME — GET INVOLVED!

By Mary Lynne Gibbs • 2018 Director

CodeNext, our Land Development Code (LDC) that is being rewritten will play a major part in our housing industry. This third draft of the city of Austin’s CodeNEXT, “Community not Commodity,” is a plan to rezone Austin and redevelop East and Central Austin. Will we see an increase in gentrification? Will outward migration occur due to lack of affordability? This is one of the issues that this code is looking to address.

Are Accessory Dwelling Units (ADU) an option? Allowing an additional unit to one’s property like a garage apartment, tiny home, duplex or granny flat lets the owner have the potential to create additional income and gives more reasonable rent options to tenants. It may give relief to inbound traffic to Central Austin. “Gentrification” was originally coined by a British sociologist, Ruth Glass in 1964 and has been a subject that has impacted cities with growth for years. Austin has seen a growth rate of 241 percent from 1980-2015 and it is not  predicted to decrease. 

In this latest rewrite, impervious cover is addressed to prevent flooding and mitigate the negative impacts of urbanization on water resources. Austin has adopted surface regulations that limit the ratio of impervious surface to the total site area. Currently each single-family property is required by the LDC to have at least two parking spaces. In this rewrite one may have one parking space and the owner may enjoy that extra space for a playscape, trampoline or garden.

Austin prides itself as being one of the most progressive cities around. Let’s look to preserve our heritage and community. Get involved. This is the first time the LDC has been rewritten in 30 years and will impact our future for years to come. It is one of the most important policy decisions our Austin City Council will make and will impact businesses that are considering coming to our area as well as our neighborhoods. From top to bottom this will impact all our lives. Let’s look for a “Win, Win” where we maintain our culture and allow smart development. For more info, go to EvolveAustin.org or AustinTexas.gov/CodeNEXT.