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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 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 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.