Texas Real Estate

Beginning on January 1, 2011, all newly constructed homes will be required to have fire sprinklers. The International Residential Code, which is the minimum standard for building in Texas, has mandated the fire sprinklers as a measure that they believe saves lives. It gives the occupants more time to evacuate the structure and may prevent the room from getting to the point of flashover, a temperature that causes all flammable items to catch on fire.

However, this new change will be costly to install and maintain. The National Fire Protection Association reported average costs of $1.61 per square foot to install. Additionally, some insurance carriers will give discounts on premiums for properties that contain the sprinklers. Of course, it remains to be seen what will happen if the system malfunctions or is accidentally set off. Looks like the fire sprinkler providers will soon have a booming business.

Source: Texas Realtor Magazine, Nov. 2008

My observations were confirmed! Apartments are being overbuilt in Austin, as indicated in an August report by Mark Doutzer, Texas A&M Economist.

Last year, I noticed an unprecedented amount of new apartment buildings going up. I didn’t have any hard numbers to go by, but it just seemed like the construction was getting out of control.

The economics reports stated that we would have 3.5% job growth in the coming year and that tenants would lease a net gain of 4,600 units between August 2007 and August 2008. However, only 1,233 were filled as many tenants doubled up to save money.

2009 job growth is now fore-casted at 1.1% and with construction loans drying up, perhaps it’s best that some of the overbuilding has been curbed.

New home building has also slowed and is not expected to pick up until the fall of 2009. So, maybe I’ll get to enjoy some of the remaining trees just a little longer.

Many Austin home buyers may not realize that buyers are entitled to representation when purchasing a new construction home. Keep in mind that the friendly person in the model home represents the builder, not you the buyer.

Builders actively market to agents and they regularly attend local real estate office meetings to provide agents with information on their communities. The builder pays the buyer agent commission out of their marketing budget.

There is also a special publication that Realtors have as a resource that lists the Austin builders, their communities and available homes which can save you the buyer, the time of visiting website after website to see if a community is right for you. Your Realtor can quickly direct you to the communities that fit your needs.

In Austin, it is sometimes required that the REALTOR® accompany the buyers(s) on their first visit. So, if you think you may like to build or buy a new construction home, ask your REALTOR® to accompany you on your search. After all, your agent is there to offer professional advice, negotiate on your behalf and to facilitate resolving any issues that may arise through the process.

As an accredited EcoBroker, I also have a list of green Austin home builders, including custom builders, that incorporate energy efficiency and sustainable building practices for your cost savings and comfort. You can also ask me about the green building features of the ‘national’ builders in the Austin area.

Call Angela Sparks at 512-762-0923 to learn more or build today!