All Forum Posts by: Austin Stowell

Agree with Max - if you wan't to skimp use a service like listing spark and make sure you get a great photographer and offer a buyer's agent a higher commission. For what it's worth - managing multiples is an art. I have seen some great listing agents coach offers from buyer's agents to much higher rates. I had a property we did in S Austin where the ARV on the houses was 500K. We pre-marketed and ended up normalizing a 550K list price and ended up receiving 568,000 and the buyer paid my closing costs. As an agent and investor that flips houses - I offer a buyer's agent 3% every time and I believe it nets me more in the end.

Remember too - the buyer has about 20+ exits from a contract if their agent knows what they are doing (option, EM, termination due to seller non compliance with delivery of items like survey/T-47, third party approval, appraisal etc).  If you are skimping on a buyer's agent  - you are incentivizing a buyer's agent to always be looking for a backup option while under contract with you.   I think it increases the likelihood of potential termination and when I am on the seller side- I want certainty after option that it is going to close.

He cannot represent both sides.  Intermediary status is totally legal however he cannot advise either side.  It is fine if both parties are fully capable and knowledgeable parties.  A good example is if a developer is buying land from another developer and both are knowledgeable in the field.  The best thing would be for your agent to represent you, find a 3rd party to represent the buyer.  Your agent can indeed receive a referral fee of any amount they choose for the buyer's agent to take on that role.   I've done this before for colleagues in this position so that bother parties have capable representation.

It depends on the situation - sometimes the unrepresented buyer is intentionally unrepresented with the intent to try and gain a discount by not having a rep. I have dealt with this before with attorneys that aren't members of the MLS for example. Ultimately - your listing agreement will dictate the plan of action. If the other party doesn't want to be represented - your agent does not have to go into intermediary status and can simply register that buyer as an unrepresented buyer (or a customer) and exclusively represent you. TAR has a quick note on it here.  Your agent should register them as a customer and explain to that third party that they do not have representation in that place.  

No but it will be less straight forward to prove it is your homestead without that. You are correct in that if you purchase a property after Jan 1 you cannot file the homestead exemption until the following year. You would have to coordinate with the STR office and fill out an affidavit that it is your primary residence and probably provide the drivers license with the address on it and potentially your utility bills and or closing statement.

The way city of Austin approved Type 1 Permits is by referencing TCAD to see if there is a homestead exemption. If you go to www.Traviscad.org and search the address and find “HS” under exemptions you will be good for the type 1.  In order to file for the Homestead - generally TCAD will want a drivers license with one of the owners with the property address listed on the license. 

Sorry on vacation with bad wifi. It apparently didn’t post yesterday. 

Here it is on YouTube

Austin STR rules

I just posted a video about the STR rules in Austin. I hope this is helpful.

Arvind - new custom homes in central Austin - most custom builders worth their salt are going quote you starting @$200/ft.  It’s possible to go value engineer below that but it’s a good back of the napkin starting point.    Remodels are going to be 100% dependent on the age, condition, area, materials used in construction at the time.  I’m working on a remodel that I will keep as a rental. Extensive termite damage, framing, windows, all major systems, roof, appliances, baths etc. 1200/ft and will run about $80k and that is self managed - not paying for someone else to manage that for you.   Add an extra 25% for someone to manage it for you but a lot of GC’s I know aren’t taking small jobs like that.  

New construction timelines in Austin are going to take you a year from permit application to CO.  Variances and COA shenanigans can significantly add to that timeline.  

Glad to help if you need help finding a place. Value add projects in Central austin is my are of expertise. 

Here is the article link from the Statesman last month

https://www.mystatesman.com/news/local/increasingly-short-term-rental-boom-pits-neighbor-against-neighbor/kiZm5c23dEHj9kZdHqoH9N/

What Gary said is correct.   There is a moratorium on Type II (non owner occupied) licenses and council intends to phase out these, what they call "commercial short term rentals" by 2022. 

The licensing process is ridiculously cumbersome.  It took over a month to renew my permits last month and they still have not corrected my mailing address after 3 years of attempts to correct it at the renewal period.

Enforcement is also ridiculous.  

Here is a great article that came out last month that shows how lax enforcement is.  There are 11,000 rentals on Airbnb and only 1900 active licenses (all types) in the COA.  

The city refuses to cooperate with Airbnb to collect the 9% hotel occupancy tax at the booking so those that follow the rules have to compete with 9000 other listings that aren't and because they aren't, get an additional 9% revenue boost by not paying tax due lax enforcement policies.

Hope that helps.