Auction at Sabine on Fifth
We have some clients who were considering purchasing a unit at Kennedy Wilson Auction of Sabine on Fifth, so we did some further research. Here are our notes from speaking with a rep at Kennedy Wilson and reading the literature:
*Sabine on Fifth is located at 507 Sabine Street, Austin, TX 78701
*There are 44 units left, 27 of which will be auctioned on Sunday Feb 28th at 1 pm at the Hilton Austin Downtown, 500 East 4th Street. Bidders are advised to arrive no later than noon. The auction is expected to take approximately 1 hour.
*On Sunday, Feburary 21st at 2pm, there is a free seminar reviewing the procedures, registration, strategies, and terms and conditions.
*All bidders must register by 5pm Feburary 25th.
*After registering, you’ll receive a CD of the HOA documents including the financials.
*HOA fees may not include cost for parking. Kennedy Wilson will be able to provide the cost of parking spaces.
*You may view all the units for auction daily from 10 am to 5 pm (including weekends). When I arrived to view, there was valet parking. I was escorted to the sales office in unit 605 where they took my information, gave me a brochure with a map, and in exchange for my driver’s licenses lent me a fob for operation of the elevators. Each unit was clearly marked with the auction number.
*The winning bid will have 4% added to it to establish the purchase price. For instance, if you won with a bid of $135K, then the actual price you would be purchasing the condo at is $140,400. This 4% pays for the seller’s expenses and the cost of the auction.
*There are unpublished reserves (minimum selling price) therefore even if you win the highest bid, the seller may still reject or counter your offer within 5 days following the auction.
*If you use the seller’s approved lender (whom they require you to at least get pre-qualified through), Bank of America or Colonial National Mortgage, and close within 45 days of the auction, you will be credited $3,000 towards non-recurring closing costs.
*If you have the winning bid, you will be immediately requested to sign a Bid Confirmation Sheet and execute the purchase documents. You must also provide a cashier’s check of $2,500 (per condo) plus a personal check to bring the total to 3%-5% of the purchase price depending on the number of condos your are buying. Therefore before the auctioning begins you’ll be required to show that you have the cashier’s check(s) with you.
>Auction Brochure
>Terms & Conditions
Sabine on Fifth had some issues. On December 16th, 2009, the Statemen reported ”CWS Capital Partners, the developer of Sabine at Fifth, said it had defaulted on the $6.4 million balance on a $16.4 million construction loan for the project but is also nearing completion of an agreement to extend the loan from Compass Bank and GE Capital.
The project is a 10-story former office building at Sabine and West Fifth streets that CWS converted to condominiums in 2007. However, 44 of the 80 units remain unsold, and in March, some residents sued over complaints, including faulty and unsafe elevators and leaks.
Greg Miller, CWS’ vice president for investments, said Tuesday that the loan extension will allow the company to auction the remaining units, probably in February, once a number of improvements have been made, including painting and elevator repairs.
In an agreement with residents, the building will be turned over to the newly formed homeowners association, which “will go a long way to making people feel comfortable” buying into a building owned by its residents, not the developer, Miller said.
Scott Dixon Smith, a resident who had been part of the lawsuit, said the agreement with CWS “resolves our differences and then some.”"
**Information deemed reliable but not guranteed. Buyer must verify.
Timeless Design & Downtown Austin Views
Take the complete virtual tour: www.bestofthetowers.com
In the heart of downtown Austin and steps from Lady Bird Lake, this luxurious condo features 1,459 square feet of city views and timeless design for only $318K. The ash wood floors, granite counters, stainless steel Kitchen Aid appliances, travertine tile, and glass seamless shower speak to the home’s understated elegance. While the Low-E windows with double-paned inserts, 2005 A/C with 10 yr. transferable warranty, Rain Soft reverse osmosis water filtration system, custom solar & blackout shades, Phantom retractable screening, and Elfa closet organization speaks to its function and practicality. Additionally the homeowners enjoy 2 reserved parking spaces (1 covered, 1 uncovered), 24-hour conceirge, fitness center, and indoor and outdoor swimming pools.
2 Bedrooms & 2 Bathrooms
Showings: Jill Crecelius, 512-567-5998, jill@mysolis.com
Historic Blacksmith Shop for Lease at 5th & Neches
Offered By: Owner & Agent Lizz Grimes, Keller Williams
Listed on the National Register of Historic Places, the Paggi family’s original Blacksmith Shop, built in 1874, is comprised of a conference room, offices, full kitchen, full bath with tiled shower, storage rooms, and pull-in garage, all opening into adjoining, recently constructed, 1,600 square foot open studio space with 22 foot ceilings. Located on the NE corner of 5th Street and Neches, across from the Hilton Hotel and one block from the Convention Center, the shop features limestone walls, long leaf pine and concrete floors, custom ironwork (of course!), skylights, walk-in fire-proof vault, and is wired for sound throughout. There are 4 on-site parking spaces (1 in the climate control garage, 1 gated, and 2 tandem). Here are the details:
Address: 500 East 5th Street, Austin, Texas
Square Footage: 3,868
Lease Price: ~1.37 per sqft per month
Tax Credit Details
People have been asking, so here are the details of the extended tax credit:
When is the new deadline?
-April 30, 2010
-If a written, binding contract to purchase a home is in effect on April 30, 2010, the qualified buyer will have until June 30, 2010, to close
What is the maximum allowable credit available to a qualified buyer?
-Up to $8,000 for a first-time homebuyer ($4,000 married, filing separately)
-Up to $6,500 for a current homeowner ($3,250 married, filing separately)
Who qualifies for the extended credit?
-First-time homebuyers who purchase homes between November 7, 2009, and April 30, 2010, to use as their principal residences; homebuyer and spouse cannot have owned a principal residence for three years prior to home purchase
-Current homeowners who purchase homes between November 7, 2009, and April 30, 2010, to use as their principal residences and have used their previous home as a principal residence for five consecutive years of the past eight years
-In addition to previously-required documentation, homebuyers must also include documentation of purchase with tax returns to secure the credit
*It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse in order to claim the tax credit.
What are the income limits for the newly-extended credit?
-$125,000 for single buyers and $225,000 for married couples (additional $20,000 phase-out allows for partial tax credit)
-Homebuyers who earn more than the maximum qualifying income ($145,000 for singles, $245,000 for married couples filing jointly) are not eligible for the credit
What is the maximum home purchase price?-The maximum home purchase price is $800,000
Will the extended credit need to be repaid?
-The credit does not have to be repaid as long as the buyer occupies the purchased home as his or her principal residence for more than three years
-If the home is sold within three years of purchase, the full credit amount must be repaid
*Information provided by the National Association of Realtors. Visit NAR or a certified tax attorney for additional details
Raising of FHA Guidelines for Spring 2010
HUD.gov
January 20, 2010 the Federal Housing Administration (FHA) announced the following changes coming this spring to FHA loans:
*Upfront mortgage insurance premium (MIP) raised from 1.75% to 2.25%
*Borrowers with FICO scores below 580 will have a required downpayment of at least 10%
*Allowable seller concessions lowered from 6% to 3% (seller concessions meaning the amount of closing costs the seller can pay on behalf of the buyer)
Commissioner David Stevens explained “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important. When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
The End of Seller Financing – HB 10
TREC Legal Update Course & Text
On January 19th, 2010, we attended a TREC legal update course which informed us HB 10 – New Registration for Mortgage Originators – Texas Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) has effectively ended seller financing. The room of agents and brokers was in uproar. When the clamor subsided, the TREC licensed instructor explained that House Bill 10 was passed to comply with SAFE under which all residential mortgage loan orginators who are not employees or subsidiaries of a depository institution who are “registered with the federal banking agency having jurisdiction over that institution” are subject to state licensing and regulation. The definition of residential loan originator does not include:
*a person who performs solely administrative or clerical tasks on behalf of the residential loan originator,
*a person who performs only real estate brokerage activities unless that person is compensated by a lender or agent of the lender
*a person who is involved solely in providing extensions of credit related timeshare plans
The definition DOES include private investors who provide their own financing. The only exception to seller financing, the instructor explained, was loans between family members. If this is the case, many of us asked, why do we still see owner financing advertised all over town? To which there was no good answer. It’s possible that this information is too new and not yet widely enforced.
HUD Policy Helps Quicker Foreclosure Sales
Ann McKinley NMLS#200305, Network Funding
HUD has temporarily waived the rule on FHA loans that prohibits insuring mortgages on homes which the seller has owned less than 90 days. Previously this requirement has both prevented the quick turn around of foreclosed property and limited buyer’s loan options when seeking affordable homes. The current plan is for the waiver to be in effect for one year, however FHA may withdraw or extend at any time. It does come with the following restrictions:
*Transactions must be arms-length. No identity of interest between the buyer and seller.
*If the sales price is 20% or more above the seller’s acquistion cost, the lender must meet specific conditions for the waiver to apply.
*Waiver is limited to forward mortgages and cannot be used under the Home Equity Conversion Mortgage purchase program.
Read More: full text of waiver on HUD.gov
Austin Energy Ranks 2nd in the Nation
IDC Energy Insights and Intelligent Utility magazine published the top 25 intelligent utilities based on productivity, renewable energy, smart initiatives, energy efficiency, and Information Technology investment. Austin Energy came in second in the nation. The top five are as follows:
1. Sempra Energy of San Diego, CA
2. Austin Energy of Austin, TX
3. Edison International of Rosemead, CA
4. Oncor of Dallas, TX
5. Pacific Gas & Electric of San Francisco, CA
Protesting Your Property Taxes
Confused about protesting your Texas property taxes? Here’s the basics of the process:
All property must be valued and taxed fairly and uniformly. If you are over-appraised, or the assessed value on your homestead has increased more than 10% from last year, you have grounds for protesting your taxes.
FORMS . Fill-out the appropriate form from your appraisal district. Travis County’s form can be found at www.traviscad.org, Williamson County’s at www.wcad.org. Your protest must also be supported by documentation.
DOCUMENTATION . You need as much documentation as possible showing your home is worth less than the appraised value. If you recently bought your home, your closing statement can be used. Your Solis Real Estate Group agent can also provide you with data on comparable homes that have sold in your neighborhood. Other sources include appraisals, photos of defects on the property, engineer’s reports, etc.
DEADLINE . Protests must be filed before May 31st for Travis County and before June 2nd for Williamson County or no later than 30 days after you receive the notice of appraised value, whichever is later. After receiving your written protest, the Appraisal District will schedule a hearing where you can present your case.
