TexasWaterFrontRanches

Photo taken at: Bella Tesoro

Sandy Ranch

CNN Money’s article “What Housing Bust?” covers what areas of the nation have done well in the housing market, and why. According to writer Les Christie, areas with plenty of available developable land have smaller swings between home price highs and lows. This is because, when the demand for housing spikes, home builders are able to build more homes and keep the housing prices in check. Speed is also of the essence here, home builders need to be able to build quickly, thus, the need for available land.

“Elasticity of supply,” this is called, according to Mark Fleming, chief economist for First American CoreLogic. And Christie says, it is the definition of Texas real estate, and similar throughout all the metro areas.

“Texas is the poster child for these ‘steady Eddie’ states. House prices during the past three years rose in all 26 metro areas with gains ranging from 2.8% for Dallas, the second largest metro area, to 9.7% in Houston, the largest, to a whopping 32.5% in Odessa.”

This is part of what is causing the metro areas in Texas, including Austin, to grow so rapidly. Landowners in the Austin area should continue to see their investments in high demand for buyers and developers.

The Double Spear Stables are 27 Acres with gated entry, highlighted by wet weather Alligator Creek.

The state of the art horse facilities include a 14,520 square foot, 39 stall barn with office and tack room; and 27 outside stalls. There is a lit arena off the barn, a 60 foot round pen, several fenced paddocks and a large, lit rodeo arena. A second hay barn includes a 1,000 square foot apartment with three bedrooms and one bath.

The property includes a recently completed, 1,482 square foot Ranch Home. The entryway features a stunning great room highlighted by a stone Rumford fireplace. The open gourmet kitchen has been installed with new appliances. The master suite has vaulted ceilings, double shower, Greek soaking tub, and his & her closets. The separate entry guest loft also has a full bath. The 800 squarare foot detached guest home has living, kitchenette, loft and full bath. Also inside the Ranch Home is a utility room.

The Ranch Home features high end finish, including stained concrete floors, knotty Alder and Cedar wood accents.

Double Spear Stables is located in historic Greune, within 10 minutes of Canyon Lake and the City of New Braunfels. 45 minutes from both Austin and San Antonio. Sold for $1,450,000, additional acreage available. See the for Double Spear Stables listing here.

The results are in, and Texans have voted to pass all 11 proposed amendments to the state constitution, including those we’ve reported on, for appraisal reform.

Proposition 11, which limits the government’s power to eminent domain, was hugely popular and passed by an 80-20 margin. “The amendment bans governments in Texas from seizing private property and giving it to a private developer to boost the tax base,” reports KXAN News.

Over 43,500 residents voted in Travis County.

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If you’re used to not voting when it isn’t a big ticket year, or if you’ve never voted before, skipping your chance to vote this year may be a mistake you’ll be paying for, for a long time. Some of the propositions on Texas’ ballot this year deal directly with home values and appraisals, and it’s important that we understand what we’re voting for and why, even if someone would still decide it’s not important and not go. Even if you don’t own a home now, it may be an issue that affects you in the future. Here is a re-print of October 16th’s blog.

November 3^rd’s ballot in the State of Texas won’t have the same hot button races as a presidential election year, but the propositions on it will directly affect Texas homeowners and their money, right now and in the immediate future. The language can be tricky and there is misleading information floating around from misinterpretation, but it is important to understand the proposed amendments and vote.

Gabriel Lopez wrote a great column translating the amendments into simpler terms. The Houston Chronicle also offered an interpretation. There are a few amendments in question, namely, Propositions 2, 3, and 5.

Proposition 2

As it will appear on the ballot: “The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead.”

What it means: We’ve talked about the increases in appraisal rates in the state. Currently, “the central appraisers are using a practice called ‘highest and best use,’ which allows a property to be valued on potential use rather than current use,” Lopez writes. In other words, if this amendment passes, if an area is experiencing rapid commercialization, the land can’t be valued for the potential value – it will mandate “that a residence be valued only as a residence, regardless of what the ‘highest and best use’ is.”

“This amendment is intended to protect less affluent homeowners from situations in which rapid commercialization in their area threatens to drive up property taxes unreasonably year after year,” writes the Chronicle. “…such development can occur quickly and with potentially difficult consequences for homeowners. The measure would be strictly limited to residences qualifying for the home-owners exemption, thus eliminating the potential for use by speculators.”

Proposition 3

As it will appear on the ballot: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.”

What it means: This amendment is another reaction to the state appraisal policies leading to inflated rates recently. It would require uniformity in appraisal processes statewide, allowing the state to have oversight and enforcement over every district. “This is important because state funding for public schools is based on the taxable property in each school district,” says Lopez.

Writes the Chronicle: “Unfortunately, the proposition has been plagued by Internet rumors that it is a back-door method to introduce a statewide property tax. It is no such thing, assures state Sen. Tommy Williams, R-The Woodlands, an author of the amendment. Williams says it is simply a means to achieve uniformity of appraising methods in the interests of more equitable appraisals in all areas.”

Proposition 5

As it will appear on the ballot: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.

What it means: The board of equalization would hear appeals from homeowners regarding their home’s appraisal value. It can be difficult to find qualified individuals for these boards in rural and less populated counties; this amendment would assist them. “It is written to be ‘permissive,’ which means a larger entity cannot force a smaller one to participate without its consent,” says the Chronicle.

Along with the Houston Chronicle, The Texas Board of Realtors endorses “yes” votes for propositions 2, 3, and 5. A quick, concise flyer is available here.

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Lake Travis, Montandon Ranch

Lake Travis has risen even more since our update yesterday; it is now at 645 feet and still rising. You can see up-to-the-minute conditions here.

With Lake Travis up and the creeks flowing again, now is the perfect time to buy.  Ranch sales are still down and sellers are extremely motivated to move their property. With the recent rains and forecasts for more rain throughout the coming months, once spring time rolls around and the market really gets going sellers might not be as motivated to sell.  There are still great rates and good terms for land deals.  Capital Farm Credit is offering 30 year term and 5 year fixed rates at 6.25% with 20% down.  Give us a call and we can get you in touch with a loan officer there.

Featured Properties on Lake Travis

Rancho Estacia A luxurious waterfront gentlemen’s ranch on Lake Travis. A 6,694 Sq Ft home, guest cabana, stables and 700 ft of Lake Travis Waterfront make this Mediterranean oasis with Texas ranch comforts.

Rivercliff Frank Lloyd Wright architecture & contemporary interiors create this stunning masterpiece on bluff overlooking Pedernales Arm of Lake Travis. Can be combined with a 32 acre equestrian center and guest home to create your dream ranch.

The Montandon Ranch Looking for deep, Lake Travis waterfront? 171 Acres with 1,800 ft. of Lake Travis waterfront. Paved roads, electricity, 3 wells. One of the Largest Lake Travis Pieces on the Market.

100-459 Acres on Lake Travis Gently sloping terrain to the Lake, high bluffs overlooking the Lake, draws, pecan bottoms, spring fed creeks and pond.

0 Bee Creek Road 46.66 Acre Prime Commercial Corner Near New Lakeway Development – The Highlands. 1,000 ft. of frontage on Bee Creek Cove of Lake Travis. Panoramic Lake and Hill Country Views.

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Lake Travis

As a result of the heavy rains last week in the Austin area, the Lake Travis levels have risen six feet. Currently, the lake’s level is just over 642 feet, with more rain already coming today. 

It is still, however, 24 feet lower than average, and 39 feet lower than completely full. “El Nino should bring us more rain between now and the spring,” says LCRA Supervisor David Walker, “we’d need ten more floods like this one to do the trick.” The National Oceanic and Atmospheric Administration’s 2009 Winter Outlook and Climate Predictions expect El Nino to dominate weather patterns, bringing a cooler winter and above average precipitation for Texas, by an increase of 40%.

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Front

This contemporary Texas “Farmhouse” was designed by Hobson Crow & custom built by Decker Ayres. It has original Texas homestead feel with contemporary design & modern features in a world class golf community.

4,192 square feet on 1.2 acres, the 4 bed/4.5 bath home is located near the 11th hole of Barton Creek Lakeside Golf Course. It is completely fenced, with limestone privacy wall and big antique mesquite doors welcoming guests. The home has a white Texas limestone exterior and a clay tile roof.

Living

The interior features tall, beamed ceilings, hardwood Texas pecan floors, and stained concrete floors throughout. The great room, at entry, has a limestone fireplace, two siting areas, and Texas Pecan wood panel walls with hidden storage/media closet and leaded windows showcasing the grounds. The open dining area has Texas pecan built-ins and door leading to private patio perfect for breakasts in the cool fall mornings. The gourmet kitchen features stainless GE Monogram appliances, Dacor range, Texas pecan hardwoods, Vermont soapstone counters and big breakfast area.

Master Suite

The main floor master suite features its own stone fireplace and sitting area with built-in bookshelves and big windows for lots of natural light. The master bath with double vanities, travertine floors, huge walk-in closet with dressing area, jetted tub and separate double shower.

Guest areas include loft guest suite with hidden storage behind Texas pecan paneling, full slate tile bath, large closet, desk/office area with big windows looking to grounds and Hill Country views. The guest home features exterior walls of stone and cypress, interior walls of painted pine with batts and sheetrock, concrete floors, living area with kitchenette, cypress wood paneling and wall of windows looking manicured grounds, and 2 bedrooms each with full bath.

Patio

The main home also features utility room with concrete floors, ice maker and 1/2 bath; 3 car garage with lots of storage; big wraparound patio with limestone fireplace and built-in BBQ; and covered breezeway leads to detached guest home built to look like original Texas farmhouse.

The property showcases a firepit and flagstone sitting area, saltwater pool and spa surrounded by mature oaks and flagstone decking and wrought iron fencing, several gardening areas among manicured grounds, and limestone workshop/storage.

Pool and Spa

The neighborhood features gated, guarded entry, golf course, tennis courts, club house, recreation facilities, hiking/jogging paths, private parks, access to Lake Travis. Located in Spicewood, only 15 minutes to new Hill Country Galleria, 35 minutes to downtown Austin. See more information and virtual tour here.

A new rule approved by the Texas Department of Insurance and adopted in August allows title insurance companies to take a “Blanket Exception” on their responsibility to determine whether a landowner owns the mineral rights to their property. Under the rule, title insurance companies no longer have to do extra title searches on a property, and it also may protect them from legal action.

The new rule will make it harder for landowners to determine if they own the mineral rights on their property, but may not lead to a discounted price with (arguably) reduced coverage. A panel of judges have held a hearing in the past few weeks regarding insurance rates, and are currently reviewing paperwork and evidence. Insurance industry groups are seeking an increase in title insurance rates, while the Office of Public Insurance Counsel (which represents consumers) agrees with the new rule, but is seeking a rate decrease. Title insurance rates are typically higher in Texas than other states, and are set by the Insurance Department. The decision by the panel will come in November.

Title companies say that forcing them to insure mineral rights statewide on every piece of property they insured would be too high of a cost burden that would cause insurance rates for all consumers to skyrocket. Critics call the new rule less work for the insurance companies at the same rates.

 On if property owners should receive a discount, Deputy Insurance Commissioner Robert Carter, who oversees Title Insurance, says: “[the State Insurance Commissioner Mike Geeslin] wants to hear that issue in the future.”

Buyers or sellers are required to buy title insurance on almost every land transaction. A title policy is essentially a guarantee that the title company will defend the owner in court if there’s ever a dispute about the ownership of a piece of land. Title companies typically run a records check before issuing a title policy, to make sure there’s no cloud over the chain of ownership or over other issues such as easements. Typically, the title company will include a list of exceptions, such as alleys, that are not guaranteed under the policy (explains  Mike Lee of the Fort Worth Star-Telegram, who first reported this story).

Farm Credit specializes in financing rural real estate in the south, and they offer plenty of free advice with their Fenceposts Blog and Landscapes Magazine articles. 

Also on their site, they offer Tips for Buying Rural Real Estate. These tips can be helpful for both someone new to ranch real estate or anyone who wants to make sure nothing is overlooked.

1. Local Advice

Get the advice of a local Realtor or loan officer who is both experienced in rural real estate, and knows the area well. They will know the local market, may know the histories of the properties in the area, and they can put you in touch with contractors and service providers.

2. Infrastructure

Be sure to ask about water and sewer services, trash pickup and road maintenance, school bus service, electric, phone, cable and high speed internet.

3.   Tax Advantages

A rural property may qualify for a tax credit, special appraisal or direct exemption. There may be existing ag exemptions.

4. Environmental Factors

By law, the presence of endangered species may limit ability to do some things like clearing brush or constructing buildings. Federal law also holds landowners accountable for contamination cleanup even if it occured before they owned the property – buyers can predetermine some environmental hazards and obtain  some liability protection.

Sandy Ranch

5. Codes and Restrictions

Government restrictions, county subdivision laws or extended territorial jurisdictions may affect subdivision of land.

6. Insurance

Some providers might not offer insurance for outside of city limits.  Your Realtor or loan officer can help.

7.  Local Land Use

Pay attention to what others in the area are using land for (for example, if you are ok living next to a large livestock operation) and any proposed developments.

8. Property Improvements

Improvements (such as fences or walls) can be expensive, especially on large properties. Certain improvements (such as septic systems or wells) may require certain county permits. Look into any permits and construction costs first, as well as needed well depths and septic system requirements for the soil conditions.

9. Maintenance Costs

Landscaping, repairs, equipment, and any building will all require additional costs.

10. Financing Country Homes

Some mortgage companies may only finance a certain number of acres, your Realtor can help you find a lender and the loan you’re looking for.