Yahoo Finance A First-Time Buyer's Guide to Austin, Texas
In a fast-paced, competitive housing market like the one in Austin, Texas, looking for your first home can seem like quite the challenge. But real estate experts say there are several ways to up your chances of snagging a property while staying within your budget.
"You need to be educated on our market, already have your financing in order and be connected to an experienced Realtor," says Brandy Guthrie, a Realtor at Sky Realty and president of the Austin Board of Realtors.
As multiple-offer situations and above-asking sales prices are common, first-time homebuyers need to be prepared before they even embark on their first home tour. We asked a few of Austin's top real estate agents as identified by OpenHouse Realty, an agent referral company (and a U.S. News partner), to offer their advice for first-time buyers in the Texas capital. Here's what they said.
Work with a seasoned agent. As the market has improved, the number of real estate agents in the Austin area has skyrocketed in last five years, says Eric Bramlett, broker and owner of Bramlett Residential Real Estate. First-time homebuyers need to ensure they're working with an experienced real estate agent who can guide them through the process, knows the market and can make a competitive offer.
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"What I would look for as a first-time homebuyer is experience, intelligence and someone who's not afraid to say, 'I don't know the answer to that, but I'll go find out for you,'" Bramlett says. Whether it's a question about financing, foundation or finishes, an agent who's worked in the market for a while can offer answers that make the experience easier and less overwhelming.
Lauren Johnson, a real estate agent with Redfin, says, "Find an agent who is your advocate and genuinely keeps your best interest at heart. There are a lot of things between the contract and looking at the construction that [first-time homebuyers] may not understand. Having somebody there, if you have doubts or change your mind, is important."
Know your priorities. After securing a knowledgeable agent, having a conversation about what's important to you is key to finding your ideal neighborhood. Need to be close to work or schools? Dream of a large, quiet backyard? Want to live within walking distance to restaurants, entertainment or trails?
"Prioritize location over everything because you can't move a house, then focus on floor plan and lot. Deprioritize things you can easily change like paint colors," Bramlett recommends. He also says understanding different submarkets is critical as prices and property types can change a few miles in any direction.
If you want to live close to downtown, consider University Hills or South Austin areas like Emerald Forest. But if you're looking for bigger, newer homes, try Millwood, Cedar Park or Dripping Springs. Those looking for homes in a lower price range could consider Leander, while those who have central or south employers should think about Southwest Austin or neighborhoods like Circle C Ranch and the Village at Western Oaks.
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Be prepared to move fast. One of the biggest challenges homebuyers face is how quickly the process moves in Austin. "Homes are hitting the market on Thursday and under contract by the end of the weekend," Johnson says. "We educate first-time homebuyers on multiple-offer situations and what we can do to make their offer stand out."
Getting prequalified through a lender before starting your search is the best way to position yourself to make an offer. Knowing the price range you're working with and what your monthly mortgage payments will be also helps narrow down neighborhoods.
Since houses move quickly, you don't have the luxury to look as much as you would in other markets, Guthrie adds. If you happen to find the house that meets your needs, even on the first day, you need to have already been approved by a lender and be ready to submit an offer.
Make a standout offer. Bidding wars happen frequently in Austin, especially in spring and summer months where almost every property has multiple offers. Guthrie emphasizes it's important to put your best and final offer on the table, and if it doesn't work out, you can move on knowing you did your best. She also suggests sending a personal letter or photo to make an emotional connection with the seller.
Other options for first-time buyers to stay competitive in the capital of Texas include increasing the earnest money deposit, shortening the inspection period or putting down a substantial down payment.
"Understand the needs of the seller," Johnson says. "When I'm putting an offer together, I'm talking to the listing agent. We're going to try to meet the seller's terms as best as possible, but also meet my buyer's needs as well."
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If at first you don't succeed, try again. Closing on a home can be difficult in Austin, and first-time homebuyers may have to submit several offers before they're successful.
"You can't hesitate when submitting the offer, and you need to know that you may have to submit a few before you get one accepted," Guthrie explains. "And with a first-time homebuyer price point, that can make [the process] more challenging and competitive than other price points."
Looking for a real estate agent in Austin? Our Find an Agent tool can match you with the person who's most qualified for the job.
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