Horseshoe Bay Real Estate News & Events

39,000 New Austin Jobs by The End of Next Year!

2012-02-24T13:56:00.000-06:00

Austin and the Hill Country are on one of the highest job growth and economic growth trajectory's in the nation. In fact the time to buy realestate is NOW! We are at an interesting crossroads of low prices and low interest rates. Inventories are starting to drop quickly and with that will inevitable increases in prices as the availability shrinks.

AUSTIN AREA ACCELERATES JOB GROWTH

AUSTIN (Austin Business Journal) – The Austin area is expected to experience more rapid employment growth over the next couple years, according to economist Angelos Angelou.

Angelou predicts the region will gain 19,000 jobs in 2012 and 20,000 jobs next year, with most of the gains in retail, education, health, hospitality and manufacturing sectors. Austin added about 13,000 jobs in 2011.

While Angelou expects area unemployment to fall below 5 percent within a year, he also clarified that low-wage jobs will make up the bulk of the added employment.

According to Angelou, Austin also has an opportunity to grow the automotive sector with the addition of the Circuit of the Americas, a Formula One racetrack under construction two miles from Austin-Bergstrom International Airport.

With the anticipated job and population growth in the area, Angelou advocates expanded transit options as a key to easing increased traffic congestion.

HOME OWNERSHIP HAS OTHER PERKS

2012-02-20T09:17:00.000-06:00

NEW YORK (CNNMoney) -- When it comes to dating, homeownership can be the ultimate aphrodisiac.
In a survey of 1,000 single people, more than a third of women and 18% of men said they would much rather date a homeowner than a renter.

Only 2% of women said they preferred to date a man who rents, while only 3% of men said they would choose a woman who rents over one that owns her home, according to the survey, which was conducted by Harris Interactive for real estate site Trulia.
Both sexes also clearly prefer it when there's no roommate in the picture; 62% of survey respondents, men and women, prefer to date singles who live alone.

I'm home! Adult children move back in with parents

And there was bad news for the growing number of boomerang kids -- the young adults who went off to college, graduated and then wound up back in their old bedrooms. It's going to be hard to find love, except (perhaps) from your parents. Less than 5% of all singles surveyed said they would date someone living in their childhood homes.
"That's a real deal-breaker," said Michael Corbett, a spokesman for Trulia. "If you're still living with your folks, you're dead-on-arrival for dating."

The home they could love

Trulia also asked which home features are the biggest turn-ons. Number one turned out to be a master bath. Men (64%) love that private sanctum almost as much as women (75%) do.

Cool and unusual homes for sale

Walk-in closets were cited by 55% of men and 72% of women and gourmet kitchens got 51% of the male vote and 62% of the female. Hardwood floors, outdoor decks and home theaters also came in high on the list.
Interestingly enough, hot tubs got a lot less love from respondents. Only 26% of men and 22% of women cited the old standby in the science of seduction as an amenity they would truly want.

Find homes for sale

THE END IS NEAR!

2012-02-20T09:14:00.000-06:00

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

01/24/2012 By: Krista Franks

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Realtors....Are They Really Necessary?

2012-02-15T22:26:00.000-06:00

This is a question every buyer and seller must ask themselves at some point in the decision to buy or sell a house. As relative new commer to the professional world of real estate the points made in this article by Realtor.com are right on. The issues are varied, complex, legally binding, and no place for the uninformed. All you have to do is go thru the finance process or sign 20 pages plus at the closing as you hand over your cashiers check to understand the need for a trusted professional to help keep you out of trouble. I have always thought that the best definition of a profession is that thru their education and expiriance they able to anticipate the issue or problem before it occures so that it can be avoided or so that a well thought action plan is already in place. Think of a pilot that must alway know what a plane is going to do before it happens.
This has always been the case with real estate, but in todays very difficult economic climate, a real estate pro is not an option.

Why Consumers Need Proper Representation from Real Estate Professionals | REALTOR.com® Blog

________________________________________
Why Consumers Need Proper Representation from Real Estate Professionals
Posted: 15 Feb 2012 06:00 AM PST
Our belief – one of our CORE beliefs – is that consumers are best served through proper representation from a licensed professional.
For most, buying or selling a home is an infrequent transaction with enormous financial and emotional considerations.
It’s stressful, emotionally-charged and high-stakes. Having a real estate professional central to the process of pricing, listing, selling and purchasing a home is important; real estate is not entertainment, and it’s not a game – bad data, inaccurate “value estimates,” and inflating inventory levels on websites creates confusion about what’s really happening in a market.
We understand that serious consumers want the real facts about a market. And we understand that these consumers also want to find a professional who can clearly articulate what these facts mean to their personal situation.
That’s why REALTOR.com® works tirelessly to be the most accurate site with the largest database of homes for sale. And that’s why we update most listings every 15 minutes.
Consumers know they can trust the data; the quality and accuracy of the listing content is second to none.
But searching for homes and researching the market is just the beginning. Market conditions vary from city-to-city and neighborhood-to-neighborhood. So when consumers move forward and take their search from online to real-life, we help them with the next step:
Connecting with a local real estate professional that can help.
A professional that’s immersed in local trends. Well versed in neighborhood nuances. Someone who can take the science of real data and apply it to the art of local real estate.
For sellers, this professional is someone who can navigate changing markets deftly and help price a home appropriately. Someone that helps ensure a smooth ride all the way from contract acceptance to settlement.
For buyers, this professional is a sounding board during their search, and their advocate during contract negotiations all the way to the first day in a new home.
Ultimately, there is a lot more than search to consider throughout the course of a transaction.
Pricing. Negotiations. Offers. Counter-Offers. Contracts the size of novellas. Addenda. Financing. Contingencies. Walkthroughs. Punch Lists. The list goes on and on and on. Navigating all of this takes skill and determination, and licensed real estate professionals are just the folks that can help.
After all, it’s what they do for a living, 24-7, 365.

Buyer and Seller Hints from Trulial.com

2012-02-09T17:41:00.000-06:00

The following is from a Trulia newsletter written by TAra-Nicholle Nelson a broker in San Francisco.

I while I may not totally agree 100% with everything written, she does hit some very important areas. Buyers need space to take ownership and discuss the pros and cons of any house. People tend to buy emotionally and justify logically. The emotional side needs time to see themselves in the home and imagine their furnishing.

Messy doesn't just mean that our Lab Dutch created a mess or licked the sliding door. Messy can just mean too much stuff! Make sure they can see the beauty of the home. They may be cross state rivals and don't like all your alma mater "stuff".

Today it is still a buyer market. Make sure your home is competitively priced, not necessarily what you would like to sell it for. The highest selling prices are achieved in the first couple of months. Pricing high and thinking you can always reduce the price is not a good proven strategy.

Finally, make sure your agent is knowledgeable and proficient with the internet. 80% plus buyers start by viewing property on line.

Talk to you soon. Roy

6 Ways to Turn Off Your Home's Buyer (or Seller!)

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Posted under: Home Buying, Home Selling, Financing | February 8, 2012 1:32 PM | 44,999 views | 84 comments
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In the wild world of dating, when you encounter a “turn-off,” you can just pack it in and not to go on another date with that guy or gal again. But turnoffs can be much more detrimental when they come up in the realm of your real estate goals. Indeed, turn a buyer off, dear sellers, and you risk not selling your home - period - or getting a lower price than you might have otherwise.

And, contrary to what you might assume, the same goes for buyers. Even in today’s ‘buyer’s markets,’ multiple offers do happen. And even in cases when you’re the only buyer on the scene, having a cooperative seller goes a long way toward everything from getting access to the place for inspections to getting a price reduction when the appraisal comes in low. Thus, the potential still exists for buyers to turn sellers off, and risk having their dream home slip right through their fingers.

As you proceed on your quest for drama-free real estate, factor in these frequently occurring gaffes that turn off buyers and sellers, and my tips for avoiding them.

Top 3 Ways to Turn a Buyer Off: If you’re a seller courting buyers, here are 3 faux-pas to avoid:

1. Hanging out when buyers are viewing your home: Buyers stalk properties online and off, checking obsessively for price reductions and the like. But buyer-side home stalking is unobtrusive to sellers. On the other hand, buyers can feel personally stalked and stifled in their ability to fully explore or verbally process their impressions of a home when you, seller, hang out inside your home while it’s being shown.

As soon as a buyer sees you in the house, it instantly becomes much more difficult for them to”
(a) envision themselves living there (it’s your house, after all),
(b) be comfortable opening up drawers, closet doors, etc., and
(c) express their thoughts about how this house might be exactly what they’re looking for, if they can knock out that wall and get rid of those cukoo murals you so lovingly painted in your children’s rooms.

Sellers: If you want to sell your home, it’s best to not be around when buyers are looking. Give them some breathing space and a chance to truly walk around and consider what they like and/or dislike about your home without lurking and looming (and, let’s be real - eavesdropping) nearby.

2. Showing a messy house: Life gets hectic, and it’s easy for things like laundry, dishes and other house cleaning tasks to fall by the wayside. It’s also difficult to keep the home in which you and your 4 kids, 3 gerbils and 2 Labrador Retrievers live perfectly spotless for months at a time, while you’re waiting for an offer. But when you decide that you’re going to sell your home, it’s imperative that you make a pact and a plan with yourself and your family that the place will be in tip-top shape when buyers come knocking.

Remember: your home is competing with dozens of others, as well as with buyer’s HGTV-infused visions of what their next home should look like, so first impressions really count.

Sellers: Stuffing the closet is not the answer. (Buyers will be opening that closet door, after all.) Pack up your personals like you were moving (best case: you are), and put all but the essentials in storage, if needed. Get the carpets cleaned, do the dishes, make the beds, mow the lawn, dust, sweep and mop. Ask your agent to give you a gut check on whether your idea of clean is clean enough (better yet - ask them for the number of a house cleaner who you can engage to get the job done to showable standards).

This might all seem obvious, but agents and buyers alike are constantly amazed at the condition of some of the homes they walk into. Take my word for it; I’ll spare you the ‘ewww’-inducing stories.

3. Overpricing your home: Buyers already have lots to do before making the largest purchase of their lives. They have to wrangle their finances into order, jump hoops to qualify for a loan, collect the cash for down payment and closing costs, and invest sometimes hundreds of hours into market research and house hunting. With all of this already on their plates, the prospect of trying to negotiate down a crazily high asking price is just too much work (and too outside their comfort zones) for most buyers to deal with. The average buyer won’t even bother looking at your home if the asking price is clearly high and off base compared with other similar, nearby homes for sale; they’d rather sit tight and wait .

Sellers: Price to sell from the beginning. Work with your agent to determine a price that is supported by the data on how much nearby homes have recently sold for. You’ll save yourself a lot of time and anguish and get a lot more legitimate bites from serious, qualified buyers.

Top 3 Ways to Turn a Seller Off: Buyers, if you want a home’s seller to play ball, best practice is to avoid these 3 pitfalls:

1. Unjustified, extreme lowball offers: It’s no secret that buyers have the upper hand in many markets right now. (To be clear, I said ‘many’ - not ‘every’ - your agent can help you understand what the dynamics are in your market.) But let’s be realistic, here. No seller can afford to give away their home at a price far below what it’s worth on today’s market. Lowballing a seller at a price far below the recent sales prices of similar homes in the neighborhood on the ‘let’s-take-a-stab’ plan, is highly likely to turn them off. And that, in turn, will cause the seller to view your offer - and you - as disrespectful and wasteful of their time.

Not only will they turn down your offer, but they may not even bother with a counteroffer, rendering your efforts at securing that particular home dead in the water.

Buyers: Review the recent sale prices of similar homes in the neighborhood (aka “comps”) with your agent before you make your offer. Also, ask them to help you factor in other market data, like the average list price-to-sale price ratio and the average number of days neighborhood homes stay on the market. It’s all right to come in lower than asking, if the market data supports such an offer; just be sure your offer is based on reality - and not your fantastical hallucination about scoring the bargain of the millennium.

2. Buyer-side mortgage fails: Plenty of employed buyers with decent credit and cash in the bank have been turned down for a mortgage these past few years. That means buyers can’t assume (a) that they’ll be approved for the amount of loan they need to buy the house they want, or (b) that they’ll be approved for a loan at all. Your inability to get approved for a home loan can create all sorts of problems not just for you, but also for your home’s seller. The average seller’s worst case scenario is that they accept your offer only to find out a few weeks, or months, later that you can’t get the loan you need to close the deal.

Buyers: It’s not overkill to start working with a mortgage professional as far as six months or a year in advance of starting your house hunt to get pre-approved for a loan. Make sure you get a clear understanding of the amount you qualify for, then work with your real estate agent from there to determine the price range you should house hunt in. And whatever you do - don’t buy a new car, open new credit cards or even change your line of work before your escrow closes, unless you consult closely with your mortgage professional before you make that move.

Tip for Sellers: Work with your agent to vet buyers before you sign a contract. Factor in their down payment and earnest money deposit, and feel free to counteroffer these items, not just the offer price. It’s not overkill to have your agent contact the buyer’s mortgage broker to see how reliable the buyer’s pre-approval really is.

3. Bashing the seller’s home: Home bashing happens when buyers start bad-mouthing (aka “trash talking”) the place and/or the neighborhood in hopes of getting a lower asking price. Examples: pointing out all the foreclosures in the area, saying the house down the street just sold for much lower than the asking price on this house, saying you’ll need to rip out the entire kitchen before you even consider moving in - saying any of these things to a seller who happens to be at home during the showing or the inspection is probably one of the fastest ways to turn them all the way off.

Buyers: Bad-mouthing a house or neighborhood won’t work to get you a lower price. Instead, it only serves to irritate the seller and motivate them to come up with all sorts of reasons why they shouldn’t sell their home to you! Remember: homes hold incredible emotional experiences for owners. Make an offer you’re comfortable with and keep the negative comments to yourself.

If there are legitimate, factual reasons underlying your decision to make an offer at a price the seller might see as a lowball, ask your agent to respectfully communicate those facts to the seller’s agent.

The Basis of a Sucessful Business

2012-02-08T11:59:00.001-06:00

Roy here. The basic foundation of any business is the relationships built with clients. The type of business does not matter. The trust that is developed with a client is a combination of a number of elements, but until the relationship reaches a point that honest dialog can be accepted and trusted, the expansion of the business will be a long and difficult process. People know when they deal with anyone who is trying to sell something there are multiple agendas. That is why Google and many others enable people to see the expiriance others have had with the business.

“We wanted the peace of mind of buying new or near new construction in a tough market with a thin inventory of newer homes available in our price bracket. Jan showed us the options available in the immediate HSB area and then widened her search to the greater Highland Lakes area. Since we could only travel to Central Texas on occasional weekends to actually visit properties, Jan made excellent use of modern Internet technology to help us screen properties so that our buying trips were the most productive possible. After we focused on a property to purchase, Jan’s persistence with the sellers and patience with us – coupled with her attention to detail and great local contacts for inspectors and tradesmen – made us proud buyers of a new home, with a happy seller on the other side of the deal too!”

-- Russ & Beth Mortenson, Spicewood

Lake LBJ...One of the happiest places on earth

2012-02-06T21:14:00.000-06:00

Roy here. Here is some information and a link for Lake LBJ. Many of us know how beautiful the "Hill Country" of central Texas is. The rolling terrain and evergreen vegetation is very special in area that is warm most of the year. When Jan and I came to the Texas she wanted to be in the Hill Country and I wanted to be near or on the water. Horseshoe Bay and Lake LBJ were the perfect combination. LBJ is a spectacular lake with great boating , fishing, jet skiing, moonlit cruises, fireworks, lake shore homes, and the list goes on. Water is very special in many ways, but to me the water is therapeutic. Just sitting on the shore and watching the waves or people having fun makes me feel good. And when you have children and grand children swimming, being towed on an inflatables laughing and enjoying the water, we are reminded again why we love Horseshoe Bay and Lake LBJ.

Lake LBJ Visitors & Tourist Guide

In the Highland Lakes of Central Texas
.Lake LBJ boating and fishing are very popular.

Lake LBJ, named after President Lyndon B. Johnson, is part of the Highland Lakes chain of six lakes starting in Austin and going northwest for over 85 miles. Lake LBJ starts at Kingsland and goes all of the way to Horseshoe Bay, 45 miles northwest of Austin. The lakes include Lake Buchanan, Inks Lake, Lake LBJ, Lake Marble Falls, Lake Travis and Lake Austin. A seventh lake, which is not considered a part of the Highland Lakes chain, is Lady Bird Lake in Austin.

Sailing on Lake LBJ
Lake LBJ is one of the largest normally a constant level lake in the United States, and is just over 21 miles long with a maximum width of 10,800 feet. Lake LBJ is perfect for sailing, boating, waterskiing, jetskiing, and all water related activities. Lake LBJ is one of the most popular lakes in Texas.

Relaxing by Lake LBJ
Lake LBJ is a very popular lake for boating, waterskiing and jet skiing. Tourists are attracted from all over Texas and the U.S. to take advantage of this big beautiful lake. Many people in Austin, Houston, San Antonio, Dallas and west Texas own weekend lake homes on Lake LBJ. Many of these people also retire in the area around Lake LBJ.
The shores of Lake LBJ are dotted with nice homes with boat houses and automatic boat lifts. There are several communities along Lake LBJ: Kingsland, Highland Haven, Granite Shoals, Sunrise Beach, Deer Haven, Blue Lake and Horseshoe Bay. Lake LBJ is a great retirement area as well as a recreational area. This area has been rated in the top three areas of the U.S. for retirement.
Lake LBJ is a great place to rent lake rental houses, cabins, or condos near the water. All are open year round. RV Parks located on the waterfront of Lake LBJ in Kingsland, allow you to enjoy watching all of the boating activity on the lake. The sunsets and sunrises are absolutely beautiful over the lake. The lake rental homes along Lake LBJ are popular with people who want family reunions or gatherings of friends at the lake.

Kids love the Water Park at the
Lake LBJ Yacht Club and Marina
.

The lake is perfect for boating and
is not usually overcrowded.
If you do not see a list of over 40 links to click on in a frame
at the left - click here for a lot more information about Lake LBJ.
Lake LBJ Home Page
Highland Lakes Web Page

New Horseshoe Bay West Low Water Crossing Bridge

2012-02-04T16:50:00.001-06:00

Horseshoe Bay West is replacing a "low water" crossing with a new bridge that will enable golfers to travel under the bridge to the next hole. More important, the bridge will enable larger trucks and trailers to move across the creek safely without the problem of getting stuck with a heavy load because of the incline and wet tires. In addition, it should enable residents of HSB West to continue to use the HSB Boulevard entrance during sever storms. Either way it is a much needed and appreciated addition to Horseshoe Bay.

LCRA Announces New Lake LBJ Power Plant

2012-02-01T11:33:00.000-06:00

Ferguson Replacement Project is underway! This is a critical and important project for Horseshoe Bay. Not only is safe, reliable, cost effective power a critical service for the area in it's future growth, the plant is reason that lake LBJ is a constant level lake. To appreciate the importance of that statement, go on line and look at photos of Lake Travis which is now down over 40 feet from it's normal level. The constant level enables building permanent docs. It enables recreation 365 days per year. The water support the 5 golf courses in the area and the list goes on. There is no single event that has a more fundamental impact on the area. This investment by the LCRA guarantees the HSB way of life for years to come.

LCRA plans to replace its Thomas C. Ferguson Power Plant near Marble Falls with a new natural gas-fired power plant that will be one of the most efficient, reliable and environmentally responsible electric generating facilities operating in Texas.
The project involves building an approximately 540-megawatt (MW), combined-cycle power facility to replace the aging 420-MW Ferguson Power Plant, which was built in 1974. The LCRA Board of Directors in April 2011 authorized staff to move forward with the project, and in August, approved a contract to build the new plant with Fluor Corporation. Once LCRA receives the required air permits, LCRA will issue a Notice to Proceed to Fluor. Fluor will then finalize the project schedule, which likely will include a two-year construction phase to bring the new power plant on-line in 2014.

LCRA will build the new unit at the Ferguson site on Lake LBJ. The existing power plant will be retired following completion of the new facility. Replacing Ferguson will help LCRA provide its wholesale electric customers with more competitively priced power over the long term because a combined-cycle power plant will be more efficient, more cost-effective and more reliable than Ferguson.

What is the Ferguson Replacement Project?
LCRA plans to replace its natural gas-fired Thomas C. Ferguson Power Plant near Marble Falls. The project involves building an approximate 540-megawatt (MW), combined-cycle power plant to replace the aging 420-MW Ferguson unit, which was built in 1974. The new plant will be fueled by natural gas. It also will be more efficient, more reliable and it will have the latest environmental controls. The LCRA Board approved the project at its April 2011 meeting, and in August, selected Fluor Corporation to construct the plant following receipt by LCRA of required air permits. The decision follows a year-long evaluation of the costs and benefits of the project, which included soliciting bids from potential contractors, gathering input from LCRA’s wholesale electric customers, and hosting several open houses to inform neighboring communities about the project.
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Why is LCRA replacing Ferguson?
Replacing Ferguson will help LCRA provide its wholesale electric customers with more competitively priced power over the long term because a combined-cycle power plant will be more efficient, more cost-effective and more reliable than Ferguson. For example, a combined-cycle power plant uses about 30 to 40 percent less fuel than a traditional natural gas-fired plant like Ferguson to produce the same amount of electric power. This results in lower fuel costs and fewer emissions per unit of power produced. In addition, a new power facility will be more reliable and cost-effective because it will require less maintenance.
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What is the project timeline?
LCRA issued a Notice to Proceed with Fluor on Nov. 11, 2011. LCRA will work with Fluor to develop a project schedule, which likely will include a two-year construction phase to bring the new power plant on-line in 2014.
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What are the benefits of LCRA moving forward with this project now?
The Ferguson Power Plant, which is 37 years old, provides diminishing value to LCRA and its wholesale electric customers. In the long term, the costs of continuing to operate Ferguson are higher than investing in a new, more efficient power plant. LCRA is moving forward with this project now because the new power plant will help LCRA provide its customers with more competitively priced power over the long term.
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Can LCRA just continue to upgrade the existing Ferguson unit instead?
Yes, LCRA could continue to maintain the Ferguson Power Plant. However, investing in a newer, more efficient power plant will be more cost-effective than continuing to upgrade and maintain the existing unit.
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Did LCRA consider other locations for this replacement project?
Yes, LCRA considered other locations. However, building a power plant on a new site would cost an additional $50 million to $70 million, and would have a greater overall impact on the environment. It makes sense to reuse the existing Ferguson site because there is room for a new power plant (the site was originally designed to accommodate additional generating units) and the fuel, water and transmission infrastructure is already in place.
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How can I get additional information about this project?
After LCRA and the selected contractor develop a project schedule, LCRA will host open houses and community meetings to inform area residents about the construction project. To sign up for enewsletter updates, see the subscribe box at the top right of this webpage. Also, here are the primary contacts for this project:

Community and public affairs: Heather Richardson, (512) 750-5732
Business opportunities: Contractors interested in attending a future vendor forum to learn more about potential business opportunities can register their contact information on LCRA's website. They also can send email to Mark Provenzano Glenda Champagne.
Media inquiries: Clara Tuma, (512) 473-3292
General questions: contact LCRA

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How much will the project cost?
This project is expected to cost between $520 million and $550 million.
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I buy power from one of LCRA’s wholesale electric customers. Will this project affect my electric bill?
LCRA will recover capital costs through the cost-based rates it charges its wholesale electric customers. However, as a wholesale power provider, LCRA does not set rates at the retail level. Investing now in a more efficient power plant will help LCRA keep wholesale power costs stable and competitively priced over the long term.
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How will this project benefit LCRA’s wholesale electric customers?
Here are reasons why replacing Ferguson with a more efficient power plant will help LCRA provide more competitively priced power:

More efficient – A combined-cycle power plant is a highly efficient way to produce power, which results in lower fuel costs and fewer emissions per unit of power produced.
Lower fuel costs – The new power plant will use 30 to 40 percent less fuel per unit of power produced than Ferguson does today.
More reliable – The new power plant’s state-of-the-art technology and design will be more reliable than the 37-year-old Ferguson unit, which requires frequent maintenance.
More valuable – A more efficient power plant at the Ferguson site will be more valuable in the Texas electric market because it will respond more quickly to demand for power, reduce transmission congestion costs at its location in the ERCOT Nodal Market, and help maintain reliable electric service to the rural Texas Hill Country, a region with limited generation resources.

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What is a combined-cycle power plant?
This type of power plant combines a gas turbine system and a steam cycle system to generate electricity. The combination of the cycles creates a highly efficient power plant that uses 30 to 40 percent less fuel and produces fewer emissions per unit of power produced than traditional gas-fired power plants like the Ferguson Power Plant.
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What will happen to the existing Ferguson unit?
When construction of the new power plant is complete, LCRA will retire the existing Ferguson unit. LCRA will work with the Electric Reliability Council of Texas (ERCOT) and the Texas Commission on Environmental Quality (TCEQ) on the decommissioning process, which is expected to take two years.
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Does LCRA currently own or operate a combined-cycle power plant?
Yes, the Lost Pines 1 Power Project in Bastrop County is operated by LCRA and owned by GenTex Power Corporation, an LCRA affiliate. Since it began operations in 2001, Lost Pines 1 has been a very efficient, cost-effective resource for LCRA’s electric customers. In fact, a recent worldwide benchmarking study shows that the Lost Pines 1 facility scores in the top quartile among its peers for performance in efficiency, reliability, safety and manageable expenses.
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Would the new power plant be louder or quieter than Ferguson?
As part of the project specifications, LCRA will require the contractor to build a power plant that does not exceed current operational sound levels of the Ferguson facility. However, the new power plant will operate more often than Ferguson does today.
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Will the new power plant be properly equipped to withstand extreme weather conditions?
LCRA included general weatherization specifications in its project proposal. It will work with the selected contractor to develop more detailed weatherization efforts when the power plant design is chosen. As a general practice, LCRA plans and prepares for extreme weather events at each of its power plants.
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What environmental permits are required?

Air permits
LCRA had to obtain two air quality permits before construction can begin on the new power plant. In September 2011 LCRA received from the Texas Commission on Environmental Quality (TCEQ) an air permit for the emissions regulated by TCEQ. In addition, new regulations by the U.S. Environmental Protection Agency (EPA) required LCRA to obtain a permit from EPA for greenhouse gas emissions from the new power plant. In November 2011, LCRA received from EPA a green house gas emissions preconstruction permit.
Wastewater discharge permit
LCRA is working with TCEQ to amend Ferguson's existing wastewater discharge permit to authorize discharges from the new power plant, which will use the same cooling water source (Lake LBJ).

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What emissions improvements are expected?
The new power plant will be will be among the most efficient, reliable and environmentally responsible power plants in Texas. It will produce 30 to 40 percent fewer emissions per unit of power produced than the existing plant. Proposed emissions limits for the new plant are more restrictive than the permit limits for the existing plant.
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What other environmental improvements are expected?
The new power plant will use less water per unit of power produced than a traditional gas-fired plant like Ferguson because a combined-cycle power plant's steam turbine is much smaller. In addition, LCRA has removed the fuel oil tanks that it has maintained on the Ferguson site as a backup fuel supply for periods when natural gas is scarce or expensive. The new power plant will not be designed to burn fuel oil, and removing the tanks will eliminate the risks associated with storing fuel oil onsite.
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When will construction begin?
LCRA is working with Fluor to develop a project schedule, which likely will include a two-year construction phase to bring the new power plant on-line in 2014.
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What will happen to Ferguson’s current employees? Can I get a job at the new power plant?
LCRA anticipates that combined-cycle power plant operations will not require more than Ferguson’s existing 40 staff positions. LCRA will first seek opportunities to train existing staff to operate the new power plant.
Will the project use local contractors?
LCRA will encourage Fluor to involve as many local businesses as possible for work that is subcontracted to qualified and cost-effective vendors.
How can local businesses get involved in the construction of the new plant?
LCRA is working with Fluor to host vendor forums in January or February to provide local suppliers and contractors an opportunity to hear about potential business opportunities.
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Why did some contractor candidates already contact community businesses?
The vendors that bid on this project may have solicited specific information, such as the availability and cost of local equipment rentals, to help capture more accurate costs and information in their proposals.
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What will LCRA do to minimize impact to the community during construction?
LCRA and the contractor will coordinate closely with local law enforcement, city and county leaders, and other public safety officials to minimize impacts to neighbors during construction. LCRA has asked Fluor to work within the noise levels and work hours defined in local ordinances.
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What are the expected economic advantages of this project to nearby communities?
In general, construction projects of this size typically bring hundreds of millions of dollars in revenue for neighboring communities through local purchases of goods and services such as supplies, rent, groceries, gas, dining and more.
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What impacts, if any, will the new power plant have on lakes LBJ and Buchanan?
LCRA does not anticipate any impacts to lakes LBJ and Buchanan. Lake LBJ currently provides cooling water for Ferguson and will serve the same purpose for the new power plant. LCRA expects that the new power plant will require the same lake levels as Ferguson Power Plant does today.
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Will LCRA need to lower Lake LBJ during construction of the power plant?
At this time, LCRA does not anticipate lowering Lake LBJ during construction. However, LCRA will have more information after it selects the design specifications for the new plant. LCRA will be working very closely with the selected contractor throughout all phases of the project.
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What will be done to protect Lake LBJ during construction?
Fluor must comply with LCRA’s Highland Lakes Watershed Ordinance, which includes the requirement to build a retention pond to manage stormwater runoff from the construction site.
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Will the new power plant raise the temperature of Lake LBJ?
No. LCRA likely will run the new power plant more often than Ferguson, but LCRA does not expect increased operations to adversely affect the temperature of Lake LBJ.
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Will LCRA use the existing intake structure?
It appears that LCRA will be able to modify the existing lake intake structure; however, we will know more after we have selected a power plant design.
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Can LCRA replace Ferguson with renewable energy resources or through energy conservation?
No, it is not feasible to replace Ferguson, a 420-megawatt plant, with generation from renewable sources or through conservation. A renewable power source like wind, for example, is intermittent and LCRA relies on a diverse power supply mix to provide reliable power when it’s needed. Also, while LCRA is working with its electric customers to determine how conservation and demand management efforts can help reduce future power needs, these efforts cannot replace the current need for power that is met by the existing Ferguson unit or its future replacement.
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Will this project require new transmission lines or towers?
Based on initial studies, LCRA expects that Ferguson's existing transmission infrastructure is adequate to support a new, combined-cycle unit at the same site. ERCOT may determine that existing transmission facilities need to be upgraded to support the new power plant; however, this would not require new transmission pathways.
Area residents also may notice activity related to electric transmission upgrades near the plant and Wirtz Dam. These projects will increase capacity of the lines to address growing electric demand in the region and are not related to the new plant. Crews will begin foundation work to add three transmission towers and swap existing transmission lines near Wirtz Dam. In the fall of 2011 another project started foundation work to upgrade the conductor on transmission lines near the power plant. The conductor capacity will be increased without any additional lines being added.
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What is an EPC contractor?
Under an engineering, procurement, construction contract, or EPC contract, LCRA hired a single contractor to design the new power plant, procure all necessary equipment and materials, and build the power plant to LCRA's specifications. This type of contract streamlines the design and construction processes and reduces LCRA's risks of cost and schedule overruns.
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I heard LCRA is building another facility in the Marble Falls area. Is it related to this project?
LCRA is building the new Western Maintenance Facility on the LCRA Wirtz Dam property. It is not related to the Ferguson Replacement Project. The maintenance facility will consolidate departments of employees currently located at various sites in the western part of LCRA’s service territory.
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Newsletter ArchivesMay 21, 2010
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Dec. 3, 2010
Dec. 20, 2010
Jan. 11, 2011
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Apr. 20, 2011
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July 27, 2011
Aug. 31, 2011
Nov. 11, 2011
Dec. 2, 2011
Jan. 13, 2012
Jan. 20, 2012

Community Open Houses

About 70 people attended four open houses hosted by LCRA in May and June 2010 to inform the public about the possibility of replacing the Thomas C. Ferguson Power Plant near Marble Falls.

Helpful links

News Releases

Contacts

Community and Public Affairs:
Steve Dyer, (512) 940-4132
Business opportunities:
Mark Provenzano or Glenda Champagne
General Questions: Ask LCRA
Media Inquiries:
Clara

2012-01-31T19:36:00.000-06:00

Texas residential real estate continues very strong as compared to the balance of the economy. Horseshoe Bay also remains very strong. In fact you might think that the big boys know something about the near future. A new bridge is being constructed across the Lower Colorado in Marble Falls, Jamal's a high line grocery store is under construction in Horseshoe Bay, most of the roads in HSB are receiving new concrete curbs, the LCRA has started replacement of the power plant, a new clinic and regional hospital is about to break ground. You never know where the bottom is on any investment, but the data would suggest that real estate in Horseshoe Bay, and particularly waterfront real estate in Horseshoe Bay, because Lake LBJ is one of the largest constant level lakes in the US, worthy of consideration.

TEXAS' EXISTING HOME SALES UP 4 PERCENT

COLLEGE STATION (Real Estate Center) – Sales of existing single-family Texas homes in December were up 4 percent from a year ago, according to the most recent Multiple Listing Services (MLS) data compiled by the Real Estate Center at Texas A&M University.

More than 16,500 homes were sold, data showed. The median home price was $150,700, about the same as a year ago, and the state's overall inventory was at six months.

December 2011 MLS data for many Texas cities are available on the Center's website. Here is a sampling (data current as of Jan. 30, 2012):

	Sales	Change from Last Year	Median Price	Change from Last Year	Months' Inventory
Austin	1,738	up 11%	$188,200	down 2%	4.2
Beaumont	151	up 2%	$114,000	down 14%	11.1
Brownsville	39	down 33%	$86,800	down 22%	12.4
Dallas	3,315	up 3%	$162,800	up 1%	4.7
El Paso	420	down 9%	$97,900	down 27%	7
Fort Worth	645	up 5%	$112,500	down 6%	5.2
Houston	5,048	up 7%	$160,400	up 2%	5.9
Midland	134	up 17%	$184,000	down 1%	3.3
San Antonio	1,393	up 3%	$148,400	down 6%	6.6
Sherman- Denison	84	up 22%	$96,700	up 3%	8.8
Temple- Belton	115	up 4%	$120,700	down 13%	7.9
Tyler	198	down 5%	$130,800	up 1%	11.4
Victoria	74	up 37%	$131,100	down 2%	3.8
Waco	153	up 2%	$116,200	down 1%	9
Wichita Falls	81	down 31%	$102,300	down 9%	7.6
Texas	16,505	up 4%	$150,700	no change	6

Strong Texas Economy Outlook

2012-01-06T11:30:00.000-06:00

The following article comes from the Realestate Center of Texas AM. Like most list, Texas and Austin are at the top of everyones mind for continued growth and prosperity.

TEXAS POISED TO OUTPACE NATION (AGAIN)

COLLEGE STATION (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

“Beyond a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and service businesses that support them are suffering negative effects of the drought. To make matters worse, federal agricultural programs are on the chopping block to reduce the deficit.
“The Great Recession: Why Intensity and Duration Varied” by Center Research Economist Dr. Ali Anari. Why did some Texas metros fare better in the Great Recession? Results from the Center’s business cycle research program pinpoint several reasons. These included shares of employment in the government sector, education and health services industry, mining and construction industry, and the metro’s level of educational attainment.
“Dialing Down Debt: Road to Recovery Begins at Home” by Center Research Analyst Gerald Klassen. It will hurt, but American households will have to liquidate their assets and reduce debt if they want the economy to recover. This means selling luxury items including vacation homes, boats and RVs, as well as selling investments, declaring bankruptcy or suffering through foreclosure.
“For the Record: When to Toss Old Tax Records” by Center Research Fellow Dr. Jerrold Stern. At a minimum, tax records should be kept three years. However, a period of seven or more years is recommended. Tax and nontax factors play a role in the decision.
“Vested Rights: Project Protection for Developers” by Houston attorney Reid C. Wilson. Vested rights freeze land use regulations affecting property classification, building size, lot size-dimension-coverage and certain other matters once the owner or developer files a permit application for that project.
“The Trouble with Troubled Assets” by Center Research Economist Dr. Harold Hunt. The volume of distressed property sales was expected to be much higher by this time. So far, everyone is still waiting. However, according to commercial real estate insiders, distressed sales are on the way up.
“Terminated: Transfer Fees Outlawed” by Center legal expert Judon Fambrough. Transfer fees, money paid for transferring interest in real property, were implemented in 2007 legislation. Four years later, that law was repealed, prohibiting any future transfer fees and terminating existing fees that do not comply with the new legal requirements.

Texas Jobs

2012-01-03T14:06:00.000-06:00

With jobs continuing to be a primary element of the national recovery. Texas continues to lead the way. Job will also lead to a faster recovery in real estate.

RECON

Real Estate Center Online News

January 3, 2012

Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.

TEXAS' PRIVATE SECTOR JOB GROWTH OUTPACES NATION'S

COLLEGE STATION (Real Estate Center) – Texas gained 227,800 nonfarm jobs from November 2010 to November 2011 according to the Center’s latest Monthly Review of the Texas Economy. That represents an annual growth rate of 2.2 percent compared with 1.2 percent for the United States.

The state’s nongovernment sector grew at an even faster rate, adding 292,700 jobs (3.4 percent) compared with 1.7 percent for the nation’s private sector.

Texas’ seasonally adjusted unemployment rate fell to 8.1 percent in November 2011 from 8.3 percent the year before. The nation’s rate decreased from 9.8 to 8.6 percent.

All Texas industries except the information industry and the state’s government sector had more jobs than the same time a year ago. The state’s mining and logging industry ranked first in job creation, followed by the professional and business services industry and the leisure and hospitality industry.

Abilene, Wichita Falls, Killeen-Temple-Fort Hood and College Station-Bryan were the only metro areas that had fewer jobs in November 2011 than in November 2010. Victoria ranked first in job creation followed by Corpus Christi, McAllen-Edinburg-Mission, Lubbock and Laredo.

The state’s actual unemployment rate in November 2011 was 7.5 percent. Midland had the lowest unemployment rate followed by Amarillo, Odessa, Lubbock and San Angelo.

Increased Interest in Your House

2012-01-01T16:40:00.000-06:00

Design Hazards: 10 ways to increase interest in your house

Roger Hazard, Design Hazards

Even in relatively healthy real estate markets, the average length of time houses spent on the market has increased. If the "for sale" sign has been in your front yard longer than you had hoped, don't despair. Instead, consider one or more of the following 10 quick fixes to catch the eye of buyers.
Get information on your home.It can be difficult to get valuable feedback on your home if you haven't had any showings lately. Have an open house for friends, and place index cards, pens and a shoebox near the front door. Ask them to write down — anonymously — any negative issues they see with the home. It might not be for the faint of heart, but the feedback can be priceless.
Kill odors, then introduce appealing scents. Every home has trapped odors that build up over time in upholstery, drapes and carpets. The winter is a perfect time to have these professionally cleaned. Instead of harsh plug-ins, use essential oils — rosemary is a good choice — and drip sparingly on your carpets.
Maximize light. There isn't much daylight during the winter months. Make the most of it by removing bug screens, which can substantially reduce the amount of sunlight allowed in through your windows. Be sure to give your windows a good cleaning. After a dry summer, they're likely covered with a fine coating of dust; removing this will bring in more light and make the windows look newer.
Declutter ... again.I know, you've already decluttered your home. That's what everyone says. But take another serious look at each room. Can you do without out-of-season clothes? What about the rarely used kitchen gadgets on the counter? Every home buyer is hungry for more space. Demonstrate that your house has sufficient counter, storage and closet space by packing up nonessential items and clearing them out.
Get your home preinspected and address any issues now.By working with an inspector in advance, you can get a jump on any potential red flags that might scare away serious buyers. You'll have a chance to tackle these repairs proactively and will have time to shop around for affordable service providers. Be sure to keep detailed records on the repairs you've completed to present to prospective buyers.
Offer an allowance.If there are more significant repairs needed to your home, or if there are functional but dated features ready for replacement, consider offering an incentive such as an allowance toward repairs to be deducted from the sale price at closing.
Spruce up your yard for winter.Curb appeal is important. Now that we've actually received a bit of rain, some yards can look better than they have in months. Take care of your end-of-year pruning to keep plants looking tidy. Bring back the green in your lawn by seeding it with rye grass. Add color with winter flowering plants like pansies.
Hire a professional.Bring in a professional interior designer or home stager for a one-hour consultation. Ask them to assess your home and offer their recommendations for quick, do-it-yourself fixes. Their feedback will give you confidence that you're focusing on changing the right elements and will include specific information on which colors and finishes will work best.
Freshen your online listing.In the past, I've discussed the importance of quality photography. Now might be a good time to consider hiring a professional to take some new photos. If you have unique details or fixtures, mix in some close-up and vignette shots with your whole-room photos so prospective buyers see charming details that make your home stand out. Be sure to rotate around your photos, replacing older ones with new shots. Your home's first photo — the one that most buyers will see as they scroll through a list of houses — needs special attention.
Reduce the price.If your home has been on the market for three to six months with no offers, it's time to consider a price reduction. There's some debate as to whether Austin is a buyer's market or a seller's market, but the fact is that buyers are less frenzied in their attempts to snatch up properties than they were a few years ago. With many buyers adopting a wait-and-see approach, a price reduction might convince them to move.
Home staging expert Roger Hazard of A&E's "Sell This House" offers design tips in the monthly column Design Hazards. Have design hazards of your own? Send him your home design, landscaping, and staging questions at www.roger hazard.com.

WE DID IT! Keller Williams moves to Second Largest

2011-03-15T01:58:00.000-05:00

AUSTIN, TEXAS (March 8, 2011) - Keller Williams® Realty Inc., announced today that it is now the second-largest real estate franchise in the United States based on the total number of sales professionals, surpassing Century 21, according to research conducted by REAL Trends, a leading source of analysis and information in the residential real estate industry. The company claimed the number two spot with 77,672 U.S. –based associates at the end of 2010, just two years after claiming the number three spot from RE/MAX® International.
“Once again, this milestone achievement is a direct result of the dedication of our associates and the stability and profitability of the Keller Williams business models,” said Mark Willis, CEO of Keller Williams

Realty, Inc. “It’s incredible to see the momentum that our associates and our offices have right now.” This news comes one week after the announcement of positive growth by the company at their annual convention in Anaheim. Including its presence in Canada, Keller Williams closed the year with 79,315 associates and 701 market centers (offices). At the convention, Willis also shared that Keller Williams associate profit share was up 7.2 percent, with its agents receiving $34.6 million dollars back in 2010. Despite industry contraction, Keller Williams associates across North America also showed significant percentage gains in listings taken (+13%), contracts closed volume (+9%) and contracts closed units (+6%).
The company also formed Keller Williams Worldwide with Chris Heller as president, citing plans for global expansion, with plans to grow the division by an additional 75,000 associates in 10 years. “Our goals are to expand the Keller Williams Realty model—with the focus on training and our sound business models.” said Chris Heller, president of KW Worldwide. “And, when looking for the right country and business partners in planning for expansion, we will not sacrifice the perfect fit with our mission, vision and the KW culture, those are absolutely necessary.”
Despite the sharp downturn in the real estate market, since 2005 Keller Williams Realty has grown 30 percent in agents, 40 percent in market centers, 21 percent in closed units and 11 percent in closed GCI.

Keller Williams Realty received many accolades in 2010 including:

• Entrepreneur magazine, No. 1 ranked real estate franchise on the 31st Annual Franchise 500 list.

• J.D. Power and Associates, highest in overall satisfaction ratings from home buyers among the largest full-service real estate firms for the third year in a row

• Inman News, Co-Founder and Chairman of the Board Gary Keller named one of the 100 Most Influential Leaders in Real Estate.

• Training Magazine, highest ranking real estate franchise on the annual Training Top 25 125, #47 overall.
“It is such an honor to be a part of a company with such dedicated and driven people,” said Mary Tennant, president and COO of Keller Williams Realty. “Our associates are setting the pace in the industry. It is truly an exciting time to be in real estate and to be a part of the Keller Williams family.”

Exciting News at ESCONDIDO

2011-03-09T21:36:00.000-06:00

Bob Dudley, from Escondido, guest posting.

While the economic downturn has slowed many markets in the Hill Country, here on-site, sales of individual lots and available residences have continued and Escondido has reached a welcome point of community maturity, as well as a very stable position based on Member growth and with new Equity participation.

Here are some of the exciting events, new offerings and announced happenings that will soon be taking place in the Escondido community:

New Dining Room

1. Our Clubhouse facility is near completion and with the final addition of furnishings and enhancing the Spa, Fitness and Dining amenities, it should be fully operational, by July 4th. The stunning structure will be getting a further $4.6m of additions and improvements between now and its opening.

2. The new Equity Partnership has announced plans to be investing a further $10m to $12m of capital in Escondido to complete the full compliment of promised amenities, add new ones and fulfill Escondido’s Founding Vision – to be the Best 2nd Residence and Getaway Community in Texas. Members approved this by a send-in Vote of 343 to 1. Closing on the Equity Partnership transaction is set for March 18, 2011.

3. A Residence Center offering is in the planning, with elegantly furnished and appointed one, two and four bedroom unit shares to be sold. These will provide for the combination of superb on-property accommodations with full membership privileges, while in residence. Share owners, their families and guests will be able to partake of Escondido’s recreational and lifestyle option.

4. Escondido’s Fazio Course enjoys a reputation as one of the Southwest’s better courses and amongst the finest of member clubs. Our Lake Club on a cove off Lake LBJ is known to be one of the premier pool and cabana sites in the country. Come learn about the plans to enhance these amenities and construct new ones, with a focus on new choices for families and children.

5. Southern Living Magazine selected the Escondido community and its architect, Michael Imber, to design, build and then host their very popular annual presentation of an Idea Home, for 2011. Ten to fifteen thousand visitors are expected to visit the Escondido community during the sixty day preview period, during the coming summer. We have properties starting at $195,000 in our Village area, fabulous, Estate lots by the golf course from $235,000 as well as prime well-treed golf fairway sites starting at under $400,000., large 4 bedroom residences starting at $1.25m and waterside lots with boat dock rights starting in the $700’s.

6. March 1st, some additional assets will be transferred to the non-profit Club Corporation, owned by Escondido’s Members. The value of an Escondido membership, one comes with each property purchase, will then rise to a new defined value level of $120,000. The maturity and stability of the Escondido Club and community are manifested in these escalating figures of the defined Escondido Membership value, since 2004. Some will act to become Member’s before values rise again, with the scheduled transfer of the Clubhouse assets, later in 2011.

7. There are several residences currently under construction, with several additional construction starts scheduled over the next ninety days. The infrastructure is nearly complete for our Lago Escondido community, one residence with stunning multiple water views is nearing completion on the Lago site with three more new homes in various stages of construction on this lovely Big Water sited community. Investments in the erection of second and primary homes in Escondido are but further evidence of the stable position that Escondido has reached. We have a wonderful variety of property for sale with a variety of fairway, creek-side, big-water or a lower maintenance smaller Villa or Casita sites available for purchase, some at economical price points.

Bob was kind enough to share photos. Check out my web site or Facebook page for more.

Current REAL ESTATE Market Anaylsis, Horseshoe Bay, Marble Falls, & Meadowlakes

2010-11-17T20:01:00.005-06:00

The months of March through October are usually our highest volume sales in the Highland Lakes of the Texas Hill Country. A quick analysis for the previous twelve months’ home & lot sales for Horseshoe Bay, Marble Falls, & Meadowlakes (my primary market area) might be of interest. I’ve prepared spreadsheets that sort Oct. 2009 to Oct. 2010 sales by city, by category, & in some cases, by subdivision. If you'd like copies, just send me an e-mail: JanLBusse@Gmail.com & I'll gladly share. My current listing clients get these regularly.

If you compare this year versus last year, our quantity of sales are almost flat. Anecdotally, however, my buyers seem to be asking two very important questions they were not asking before:

What's the best DEAL (value) for the money regardless of price, category, or location
How much more can I get if I move my price point UP to the next "xxx" number of dollars

During the 2008-2009 sales year, our market sold almost exclusively houses under $300,000 and over $1million. This year, we see the BEGINNING of mid-level ranged houses selling again. Yes, they must be great prices, exceptional properties, or exceptional values -- HOWEVER THEY ARE SELLING AGAIN.

“Single Family & Condos Sold” are heavily weighted toward NEW construction, regardless of city or category.
Most buyers resist remodels in our market, especially when new homes are available at reasonable prices, so older home sales have been hardest hit. Subsequently, they may also be the biggest opportunity for bargain hunters.
Until recently, there have been a number of new construction foreclosures on the market, which drove down prices even further. This is especially true for condos & townhomes
Today, there are fewer “single family, distressed” properties available & I don't foresee many more showing up in this category any time soon.
Condos, especially “The Waters,” may see still more foreclosures this year
Golf course homes, which were also very slow selling have begun to see activity again, especially in new construction & higher end houses (those asking over $500,000)
Another surprise for our market, is “Waterfront Single Family Home Sales” have slowed, while inventory is very high. There are currently 88 waterfront homes listed in our MLS as “for sale” in our three cities.
My OPINION is that there are fewer motivated sellers in that category
The oil business has settled down to a more normal level of business, & in TEXAS, oil related businesses supply an unfair share of our highest end buyers
Currently there are only 2 waterfront condos listed as “pending” in our MLS
Currently NO waterfront houses are ”pending” in our MLS.

Regarding home sales, the market seems to be holding its own or even trending up, based on price points paid this year versus last year.Whereas two years ago buyers were not buying at all, today there are qualified buyers, looking for bargains in most all categories.

When buyers ask me where the best STEALS are, without fail, I tell them "buy dirt!" Lot sales have been almost non-existent in the previous 12 months, & they show no immediate signs of improving. Serious discounts are available!!!

Savvy investors are beginning to inquire regarding lots again thanks to the news about the new county hospital & the recent positive changes at Escondido & Skywater
Builder’s profits are greatly affected by land costs, so those that can bank property are looking for particular bargains.
From talking to several Austin & San Antonio builders, I’ve been told the land costs there are rising again, so I believe our market will soon be viewed as the GREAT VALUE it is.
Until most of our newer construction single family inventory is sold, land sales will like stay very slow unless sellers are willing to provide deep discounts to buyers
It is often cheaper to buy pre-existing new construction than to build new

Every month, I prepare spreadsheets & average the sales numbers by category. Everyone understands the averages are arbitrary. Trying to compare locations, finish outs, age of the homes, etc, is impossible. But one very important average struck me: in almost every instance, the average percentage paid for a property, compared to seller's asking price was 92% to 95%.

Today, when there are so many bottom feeders, sellers are afraid to drop their asking prices close to what they'll actually take, but they NEED TO RE-THINK THIS STRATEGY.

If the price has too much negotiating room, buyers won't make an offer, but go where they think they can negotiate with someone who's more motivated and/or realistic.

Overall, I would not say the immediate future is rosy for sellers. It remains weighted heavily for buyers, but overall sales seem to be trending slowly up. There ARE many buyers willing to purchase if the value is strong enough. It's not strictly about PRICE, but the VALUE must be apparent in every transaction.

How to Protest Your Tax Valuations

2010-05-14T13:07:00.006-05:00

Llano Central Appraisal District (LCAD) mailed over 12,000 notices of increased appraised values to property owners this week. If you are one of the 12,000, there is a process in place that allows you to PROTEST INCREASED VALUATIONS. In anticipation of the protests, Texas Comptroller Susan Combs has prepared a video about protest procedures.

In light of our slow real estate market for 2009, a comparative market analysis (CMA) done by a real estate professional could help you verify the appreciation your county is claiming or help you make the case that county records are not thorough enough to support the increase. I highly recommend you CONTACT YOUR REALTOR for a CMA of the property & market in question.

As I explained in last week's blog, if you purchased a new property during 2009 and paid less than the county's appraised value, usually all they require to change the valuation is a copy of your closing statement (also known as a HUD statement) from the title company.

In order to preserve an objection to the district’s valuaton, a taxpayer must file a formal protest within 30 days of the date the appraisal notice was mailed, which will be June 4, 2010 in Llano County. Burnet County mailed its notices on April 30, so protests are due by June 1, 2010 for Burnet County property owners.

Texas state law requires notice sent to an owner whose value increased by more than $1,000 from tax year 2009 to tax year 2010. LCAD sent 19,000 notices of increased valuations last year. If you own property in Llano County and did not receive a notice of appraised value in the past week, then your property has not significantly increased in value, and your tax liability will not increase for 2010.

The county sets appraised value from two components — the value of the land and the value of any improvements on the land. State law requires appraisal districts to appraise property at 100% of its market value. However, after application of factors such as agriculture use, homestead caps, and exemptions such as homestead & over 65, many property owners pay ad valorem taxes on a reduced valuation.

Taxpayers who disagree with the appraised valuation of their property can contact the appraisal district for an informal review which is typically a discussion with a district appraiser who can provide information about comparable sales and how the district arrived at the value.
LLano County Website
Burnet County Website

Should You Protest Your Property Valuations?

2010-05-05T13:40:00.005-05:00

A record number of property owners protested their tax valuations in 2009 and 2010 should be no different.

Why is tax-assessed value different than market value?
The tax-assessed value is what your county believes your home or condo is worth. The county attempts to set their values at a market value. However, they do not evaluate comparables nor do they perform individual market analysis on every home. The county simply values your home according to the area, not the HOUSE. Meaning, the value may be too high or too low, depending on the size, location, amenities, & condition of the specific home.

How do you determine your market value?
You can contact your Realtor who can provide you with market information, collect information from neighbors who have recently purchased their homes, or contact a company who specializes in assisting with tax assessor valuation protests. If you have purchased a home during the previous 12 months & paid less than the valuation, your closing statement is usually all the county needs to see in order to lower your valuation.

Should you appeal your property valuation?
If the market value on your home is lower than your tax-assessed value, then you should appeal. If the market value is higher, then you should not appeal.

When should you receive your property valuation and how long do you have to appeal?
The County Appraisal Districts began mailing property valuations sometime after April 15th. Most homeowners should have received their valuation on or before May 1st. Homeowners have until May 31st, or 30 days from the date they receive their valuation (whichever is later), to appeal.

How to appeal your Property Taxes?
If you believe your property valuation is higher than the current market value, you should appeal your taxes. When people don't appeal, the taxing authority accepts that their value is correct which affects all homeowners in a given area. By appealing the assessed value, we all help keep our real estae taxing authority valuations in line with market value.

File your protest using the protest form available from the County Appraisal District. After you have filed, it can take several weeks or more for the Appraisal Distric to schedule your informal hearing. Depending on the county, this can take place over the phone.
At the hearing: The purpose of the informal hearing is for you to present your evidence and facts to support your claim that they have over-valued your home, condo, or land

PRESENT YOUR EVIDENCE: The following information can be helpful to present at the hearing:

Comparable Market Analysis (CMA): A comparable market analysis looks at Market Value and shows recent sales for homes that are similar to yours in size, age, location and type of construction
Documentation Regarding Your Homes Condition: Once again, anything that would adversely affect the Market Value of your home is evidence that you can use in your appeal (if your home backs to a busy street - consider printing a Google map to document your location.)
Recently Purchased Homes: If you purchased your home in the last several months, and the purchase price was lower than your appraised value, bring a of your settlement statement.

Here are a couple of things to keep in mind when you talk to the County Appraisal District:

The Appraisal District is responsible for setting the appraised value. THEY HAVE NOTHING TO DO WITH THE TAX RATE. You are not going to protest your tax rate or how much you are paying in taxes. You are only appealing the county's assessed value of your home.
Bring an extra copy of all your supporting documentation to leave with the county.

To find out more information about protesting your tax appraisal, visit these sites:

Burnet County: http://www.burnet-cad.org/
Llano County: http://www.llanocad.com/

MONEY MAGAZINE Recommends Marble Falls

2008-09-22T13:07:00.009-05:00

Marble Falls & Horseshoe Bay continue to receive kudos for being one of the best places in the country to retire.

In August of 2008, Sarah Max of MONEY MAGAZINE contacted me because she was doing research for an article on great places to retire. MONEY had found that 49% of baby boomers wanted to retire somewhere by the water. That desire was second only to moving nearer to their grandchildren. After screening for good medical care, low taxes, & affordable housing, Marble Falls made the list!

I put Sarah in touch with our dear friends, Pat & Larry Snider who recently finished building a home in The Trails of LBJ. Ginny Rhodes, my ex-partner sold them their lot. Terry Dauphine of Dauphine Homes built the house, did a spectacular job & Larry & Pat love it! Both are avid water skiers and own cutting horses back home in Colorado, so the Trails was the perfect location for them. Currently dividing their time between Horseshoe Bay & their ranch, they plan to move here full time next year when Larry retires. Pat, Larry, & Horseshoe Bay are mentioned in the hard copy version of the magazine, currently at the newsstands.

When talking to clients, especially retirees, I'm hearing more frequent concerns about living on the coast. Whether the problem is global warming or a re-occurring cycle, the result is the same: increased incidence of hurricanes. No one wants to loose everything, but certainly not at a time of life when your health may not prepare you for the challenge. We had a number of friends who have had family here (some still are here) from Houston because of IKE.

Horseshoe Bay & Marble Falls provides the right distance away from Gulf storms. We have wonderful, affordable housing with great waterfront access. And if you still want to visit the coast, you're only a couple of hours away!

Texas Fall Fest & Wine Auction

2008-08-18T00:23:00.007-05:00

Accoring to Orbitz, the Texas Hill Country is second only to Napa for fastest growing wine & food destinations: "Distinctive wines combined with southern hospitality have vaulted the Texas Hill County to the #2 spot on the Orbitz Insider Index fastest-growing list."

But did you also know that Texas viticulture had a tremendous, historic impact on the European wine industry? At the end of the nineteenth century, Thomas Volney Munson & Texas rootstocks literally saved devastated French vineyards from phylloxera. Munson grafted French vines onto resistant native Texas rootstocks & this procedure is still used today. For more information check out Lone Star Vine Roots.

Help us celebrate! Horseshoe Bay Resort will be hosting its Fourth Annual Texas Fall Fest & Wine Auction presented by the Texas Wine & Grape Growers Association, beginning Friday, October 31 through Sunday, November 2.

Guests can enjoy three days of Texas wine and regional cuisine activities. There will be a wine and food pairing seminar, wine tasting at Spicewood Vineyard, a book signing by Celebrity Chef Grady Shears at Fall Creek Vineyards, and a dinner by Grady Spears and Wine Auction Gala, to name a few.

Take advantage of a great package offered by the Resort. Starting at $403 per person (double occupancy) for a two-night stay, October 31 and November 1, 2008, the package includes entry to all six of the festival events plus a VIP-only event with a special take-home good bag.

If you would like to stay at the Resort but not purchase the all-inclusive package, then you may call the Resort’s reservation department at (866) 799-5384. You may also purchase individual event tickets by phone (877) 424-0570 or by visiting the TEXAS FALL FEST & WINE AUCTION website, where may also get more information and a detailed schedule.

New 1031 Exchange Guidelines for Vacation Homeowners

2008-03-16T19:53:00.006-05:00

Realtytimes.com recently reported that the IRS has provided new guidelines regarding whether vacation homes qualify for a 1031 exchange. One of the big trends with Texas baby boomers is vacation homes. With over 70% of Horseshoe Bay property owners being second home owners, and our primary demographic catering to the 50+ crowd, this information is very timely.

According to a new IRS ruling, the property must first be held by the taxpayer for 24 months to qualify for a 1031 exchange. In addition, during each 12-month block of this holding period, the owner must have rented the vacation home for at least 14 days at a fair market rent. Also during each 12-month block, the owner is only allowed to use the property for the greater of 14 days or 10 percent of the days rented. Owners are also allowed a reasonable number of "maintenance days" to care for the unit.

Check with your accountant & the IRS if you have questions. Another local source is Hill Country 1031 Exchange, located here in Horseshoe Bay. If you're looking for someone to help manage your rental property, check with Sandy Terkelson at Horseshoe Bay Resort Rentals.

For more information about real estate in Horseshoe Bay, check my web site: http://www.JanBusse.com/

Property Owners Association Annual Meeting

2008-03-14T13:24:00.007-05:00

The Horseshoe Bay Property Owner’s Association Annual Meeting is tomorrow, Saturday, March 15th @ 10:00 AM, at Quail Point on Red Sails in Horseshoe Bay. The agenda is on their website.

One item on the agenda is information about hazardous waste disposal. The LCRA is sponsoring hazardous waste disposal for Llano, Burnet, & San Saba counties on April 26, 2008. Residents of these three counties can bring their products to the LCRA Western District Complex, Texas Highway 29 and R.R. 1431, Llano County. Hours are from 8:30 a.m. to 12:30 p.m. Check their on line schedule.

Lawn and garden products, automotive lubricants, cleaners, paints, and solvents are found in most homes & their improper disposal can pose a threat to health & contaminate land, air, and water. LCRA's Household Hazardous Waste Collection and Education Program teaches the safe and proper management of these materials and collaborates with local governments to properly dispose of them, & to prevent contamination, especially of local water resources.

In helping local groups sponsor one-day waste collections, LCRA provides assistance with sponsorship and community fundraising, media and public awareness, school-based education, product exchanges, and collection and disposal.

For more information about real estate in Horseshoe Bay, please check my web site: http://www.janbusse.com/ .

Spicewood Vineyards Announces 2007 Cabernet Claret

2008-03-12T22:07:00.004-05:00

Spicewood Vineyards is celebrating the release of their 2007 Cabernet Claret on Saturday, April 5 with a good old-fashioned pig roast! They will be selling tickets providing the holder with dinner, two glasses of wine of their choice, and a sampling of their brand new Cabernet Claret. Guests will enjoy live music, great atmosphere, & beautiful Springtime, hill country views.

Cabernet Claret tastings will begin at 5:30 and dinner will be available starting at 6:30. The tasting room will have extended hours providing guests with an opportunity to taste and purchase the entire selection of wines. Tickets are 20.00 each or $35.00per couple in advance. Tickets will be $25.00 at the door if available. Be amoung the first to experience Spicewood Vineyards 2007 Cabernet Claret! You can contact Spicewood Vineyards by phone: (830) 693-5328

Horseshoe Bay Marriott Now Managed by Jaffe Group

2008-03-01T19:23:00.004-06:00

In an article by the Austin Business Journal, Horseshoe Bay Resort Marriott, previously managed by Marriott Corporation will now be run by Resort owner, The Jaffe Group. The 349-room hotel will now operate as a Marriott franchise hotel and all the former Marriott hotel employees will become part of Horseshoe Bay Resort's staff.

One benefit for customers is that they will now have one point of contact for the resort and hotel, ownership says. "This transition enables the employees of Horseshoe Bay Resort to provide seamless service for members and guests," says G. Michael Thomas, president and chief operating officer.

Plans are under way to introduce a number of new or upgraded amenities, including a 90-foot-long yacht for private events and group functions, a new restaurant at the Yacht Club, new marina facilities, a new, state of the art spa and fitness center and a completely renovated Cap Rock Clubhouse. (See posting for Jan. 21, 2008).

For more information about Horseshoe Bay Resort & real estate in the Highland Lakes, see my web site www.JanBusse.com

Services for Jerry Owens

2008-02-22T21:58:00.003-06:00

Marta Stafford, Riverbend Gallery manager, sent word today about memorial services for Jerry. There will be services this coming Monday, Feb. 25, at 2.00 pm at The First Baptist Church of Richardson, 1001 North Central Expressway, Richardson, Texas. A memorial service has also been organized in Horseshoe Bay for Wednesday, February 27th, at 10am at the Church at Horseshoe Bay, 600 Hi Ridge Road (phone 830.596.7071).

Letters of condolence may be sent to his wife, Suzanne at PO Box 4123, Horseshoe Bay, Texas 78657. In lieu of flowers donations may be made to the church (address above) or to The Highland Lakes Society for the Prevention of Cruelty to Animals, PO Box 1275 Marble Falls, TX 78654

Our thoughts and prayers are with Suzanne & the family.

In Memoriam

2008-02-21T19:32:00.007-06:00

As some of you know, I show my artwork at Riverbend Fine Art Gallery in Marble Falls. It's a wonderful, nuturing enviornment and I'm very honored to be included in their family of artists.

We received very sad news today that the gallery's owner Jerry Owens passed away yesterday afternoon. His wife Suzanne, his family, & friends feel the loss deeply and I know would appreciate your prayers and good wishes.

Below is a copy of the note gallery manager, Marta Stafford send to friends of the gallery. She called each artist today to personally tell us the news. It was a terrible task & I know she & Lori, her assistant would also appreciate your thoughts and prayers.

2.21.08 On Wednesday, February 21 Jerry Owens, owner of the gallery, died at home with Suzanne at his side. We feel as though we have lost a best beloved family member. He was gentleman and an art lover who could combine his intelligence with humor and sensitivity. Jerry's contribution to the community is quiet, yet deeply felt by many. He lives on in our thoughts as we wish him and his family a healing peace... This is his message for you:

Valentine's Day 2008"Home from the hospital today. What a glorious, if exhausting trip! Nine days in there seemed like at least nine years. There was going to be blood on the floor, and not mine, if they did not let me out of there. They say that time helps you to forget and I certainly hope it is true. The bottom line is, I am alive and hopefully soon back to near normal activity, and the cancer is not likely ever to come back. There is a lot of strength to recover, and some adjustments, but life should be near normal for an old dog at 74.

I owe so much to so many, I don't know where to start. I won't try to go down the list. You know who you are and it for sure includes every soul who has said a prayer in my behalf. Suzanne, of course, is my rock, and has been there every step. She is my beacon. I love you each and every one. God bless." Jerry

Mastering the ART of Real Estate

2008-02-14T15:23:00.023-06:00

When we first came to Horseshoe Bay, I was completely enchanted with the natural beauty of the development and how well the Hurds & later, the Jaffes, had preserved it. The low water crossings that are so emblematic of the Hill Country are used frequently and I feel like a kid when I drive or walk across them. When a new client cheers as we go through the first time, I grin just as much as they do!

Horseshoe Bay neighborhoods are charming & each has it's own personality, but trying to learn your way around here is NO SMALL TASK. Roads follow the golf course or the lake's shoreline and both meander every which way. My "navigation" system was completely turned around our first few visits here. In order to help my clients decipher the spaghetti we call a road system, I'm working on printing a new map. Kelly Cauble, of Homeview.net is doing it for me & I've decided to use some my original paintings instead of photographs for the artwork. It goes along with my theme of the "Art of Real Estate." It’s also a wonderful way to get to paint & not feel guilty.

I know from teaching art and from working on location, people are intrigued by the process of painting, so I thought I'd post a few pieces as I work on them. These paintings are a combination of media: both watercolor (because it's fast) and colored pencil (for detail). I do a lot of multi-media when I'm on vacation. I usually work small, so they're very portable & I can take a bag with me that's a traveling studio.

The last photo, above, is the starting point. It's a simple pencil drawing & the blue color you see is the masking medium used to "save" the white paper underneath. It's rubbed off when the watercolor is completed. In traditional watercolors, no white paint is used. When you want a lighter color, you add more water to the pigment which makes it more transparent. Pale paint on white paper is how you get highlights in watercolor. To get the color "white" you simply don't paint on that area & let the white of the paper show through. Darker values are achieved by adding more pigment & less water.

The second photo is the "under" painting of watercolor only. By doing all the big blocks of color & establishing the lights and darks I can do a painting of this size (about 6" x 9") in about 3-4 hours. It takes about an hour (and twenty years) to do the watercolor portion.

Photo number one is the finished piece. I've added the colored pencil, which is semi-transparent. Pencil is great for detail and is applied in layers over the watercolor. They're wax based, so you can't add watercolor on top of traditional colored pencils.

The finished piece is called "Sandy Creek Spring.” I used two photos (artistic license) for references that I took last spring in the Trails of LBJ. The vantage point is at the corner of Trails Parkway & Rock 'N Robin, overlooking the Sandy Creek arm of Lake LBJ.

The maps should be completed and ready for mailing in about four to six weeks. Please e-mail or phone if I can send you one. The easiest way to contact me is on my web site. If you'd like to see more of my paintings, go to my art site & to find out more about investing in Horseshoe Bay, check out my REAL ESTATE web site www.JanBusse.com.

Gentlemen, Start Your Engines.

2008-02-12T17:04:00.004-06:00

Private motor clubs are all the rage with well heeled auto buffs, and there are several in Texas: MotorSport Ranch, southwest of Fort Worth, and Eagles Canyon Raceway near Decatur. In an article last week, the Austin American Statesman reported a new, $13 million private motor sports club with two high-performance racecourses is in the works for an unspecified location in the northern part of Blanco County. (See posting for 02/05/08 titled "Wish You Were Here!")

The Blanco project, called Bergrennenring, which is German for “Hill Race Circuit,” is negotiating to purchase 250 acres near the city of Round Mountain, about 17 miles southeast of Horseshoe Bay, on Hwy 281. See a Map of the area. With a $25,000 initial membership fee and the high-end automobiles required, the club will cater to the same clientele as those of Horseshoe Bay Resort, Skywater, & Escondido.

Boerne-based Motorsport Resorts International confirmed they were negotiating to buy a site, but it would not disclose the exact location. They will say that the proposed property now lies somewhere in the city of Round Mountain's future growth area or extraterritorial jurisdiction. The high-end homes and resort facilities which were originally part of the plan, have been dropped for now. They hope they may be able to enter into agreements with nearby resorts, such as Horseshoe Bay. The developers hope to break ground in the latter part of this year on the first phase of the project. It could open as early as 2009.

Not everyone is pleased with the project. Round Mountain residents who think they may be potential neighbors are concerned about environmental issues such as noise & water pollution both during construction and thereafter. Developers promise to address the concerns through noise abatement measures and claim fuel will not be sold on the premises, eliminating the need for oil & gas storage tanks, which could cause a problem for ground water.

Blanco County resident Dave Collins, who is also president of the local environmental organization Preserve Our Water, remains concerned. The Statesmen article quotes him: "I've seen too many instances where noise abatement was promised and not delivered," he said. "I'm still concerned about the potential damage to surface and groundwater, both from the construction activities and from runoff during the use of the facility."

For more information about REAL ESTATE in Horseshoe Bay & the surrounding area, visit my web site: www.JanBusse.com

Spring Has Sprung!

2008-02-12T15:36:00.000-06:00

Spring has sprung in Horseshoe Bay! Our temperatures have been consistently in the 60’s & 70’s over the last several weeks and we’ve even hit over 80 several times. Once we can start watering our lawn again, things should be turning green pretty quickly. Since my husband & I live on the lake, our sprinkler system feeds from LBJ & we’ve turned it off until lake levels are back up to normal.

The LCRA will begin refilling Lake LBJ will on Feb. 25 and should be completed by Feb. 27 unless an emergency requires LCRA to refill the lake earlier. Refilling Lake LBJ is expected to draw Lake Buchanan down about one foot. I’m planning on taking photos during that time for posting to the blog & my web site.

With Spring, in Horseshoe Bay especially, comes golf. The Southern Texas PGA Senior Series is leading off their ten tournament schedule on March 17-18 at Horseshoe Bay Resort. The STPGA Senior Series is open to golfers aged 50 and above as of Nov. 1, 2008. Annual membership dues are $125 and include eligibility for Senior Series tournaments plus special branded merchandise. It’s open to both professionals & amateurs. Professionals playing in Senior Series events compete for cash; amateurs for merchandise certificates. Golfers who finish in the Top 6 on the season-ending points list earn spots in the field at the 2008 Texas Senior Open Championship. Check out the entire schedule.

Wish You Were Here!

2008-02-05T17:45:00.000-06:00

Horseshoe Bay is perfectly placed. With a lifestyle of outstanding resort amenities, unspoiled waterfront, & breathtaking Hill Country vistas, our economic climate remains strong while much of the remaining U.S. struggles. Our two closest, Austin & San Antonio, continue to receive strong economic forecasts. The fastest growth corridors for both cities are taking place TOWARD Horseshoe Bay. We can’t help but reap the benefits.

Forbes Magazine has ranked Austin as the NUMBER ONE fastest growing large metropolitan area in the United States. Forbes cited Austin's high-tech industry (with key employers such as Dell, IBM and Apple) and the University of Texas, which provides the area with a steady stream of talent. Austin is the self proclaimed “Live Music Capital of the World,” & has a thriving film industry & art’s community.

Austin's projected gross domestic product growth by 2012 is second only to Mobile, Ala., and first among the largest 100 metro areas in the country. Metro area Austin's population is expected to grow nearly 15% by 2012. In projections run for Forbes by Moody's Economy.com, Austin’s GMP by is expected to grow 32% during the same time frame.

Horseshoe Bay’s next closest metropolitan market, San Antonio, barely missed the list because, according to Forbes, they're expected population growth is lower. However they still ranked #6 in Fortune’s “Top 10 Places to Own Real Estate” showing solid appreciation while much of the rest of the U.S. endures hard economic times.

As an example of this growth, Galo Properties http://www.globest.com/ will soon begin construction on a $200 million, 77-acre town center just northeast of San Antonio. Cibolo Town Center’s first phase will include a 129-room Cambria Suites Hotel and 174,000 s.f. of retail space. The project is expected to have 600,000 to 800,000 s.f. of retail at build out.

Construction will be underway by the end of this year at I-35 North and Weiderstein Rd., which will be renamed Cibolo Pkwy. The first phase is slated for a late 2009 or early 2010 completion.

Horseshoe Bay is what I call the third point in the Hill Country's "golden triangle." Giving us all the convenience of two thriving metropolitan areas and the affordability of small town prices, our equity appreciation rivals almost any other market in the U.S. If predictions by some of the nation's most prestigious publications prove true, we are perfectly placed for a long time to come.

Is YOUR Retirement program this good?

2008-02-04T17:03:00.000-06:00

We knew it was the tip of the iceberg, but frankly, the more I learn about the PEC Board’s flagrant disregard for their responsible stewardship of our Co-op, the angrier I become. My modest sized home had an electric bill last month of over $400 – we’ve had unseasonably cold weather this year. When we retire, neither my husband nor I will have the same benefits of some board members of our local PEC.

Yesterday’s (02/03/08) Austin American Statesman revealed an … "emeritus" program that would provide lifetime pay and benefits after a director's active service on the board ends. The program was used to assist at least one former director, Charles Winters, who stayed on the Pedernales payroll after entering a nursing home in the late 1990s. Winters died in 2005. Family members say he suffered from chronic obstructive pulmonary disease, a debilitating lung condition." The existance of the program was completely undisclosed to co-op members.

There have also been questions regarding another employee who left her job as Pedernales General Manager Bennie Fuelberg's assistant and moved to Louisiana two years ago. According to Fuelberg's testimony late last year in a lawsuit brought by Pedernales members, she also still collects full salary & benefits without providing any service to the co-op.

Staff members are eligible for a generous retirement package from Pedernales that includes a defined benefit plan and a 401(k) plan with a 5-to-1 COMPANY MATCH. According to the Statesman article: “Charles Elson, professor at the John L. Weinberg Center for Corporate Governance at the University of Delaware, said emeritus board members are rare in both the for-profit and nonprofit world, and are almost always honorific — without compensation. ‘To pay and get health insurance is highly unusual,’ he said. Greg Boudreaux, a retired executive of the National Rural Electric Cooperative Association who consults on governance issues, said emeritus positions are usually granted in 'recognition for directors that have made a significant contribution to the co-op' but do not come with pay."

Last week, Lt. Gov. David Dewhurst authorized a Senate study of Pedernales' lax oversight by its board of directors. The study and hearings will be conducted by the Senate Business and Commerce Committee, which Horseshoe Bay resident, Sen. Troy Fraser (R) heads.

In January, Pedernales Electric Co-op became the subject of a preliminary criminal investigation by the district attorney for the Hill Country area that includes Johnson City. SIC 'EM BOYS.

Investing in Real Estate; Building Net Worth

2008-02-02T17:48:00.000-06:00

HousingPredictor.com has forecast Austin as the number one spot in the nation for investors! It’s impossible to obtain forecasts for Horseshoe Bay; we’re just too small a market today, and very much of a niche/resort area. But our closest metro area, Austin, was once again getting raves from another independent study for economic & real estate growth. Rated #1 in their Lucky 7 forecasts for 2008 are intended for investors willing to take a RISK buying real estate for QUICK PROFIT.

Looking at 250 local housing markets in all 50 states, they are betting on quick profits in these seven markets. They advise being able to handle mortgage payments for longer than the 12 month minimum sometimes suggested. Austin earned the #1 spot because of it’s vibrant economy, growing high tech industry, & booming population.

I initially got interested in real estate as a profession because my husband & I love to remodel houses. What started out as a necessity when we were young & poor became a great way to leverage ourselves into nicer homes & build more equity faster. Because we’ve lived all over the country, rarely staying longer than 5 years in one house, we found some tried & true methods that work for us:

· SET A BUDGET & STICK TO IT! Make sure you get a good inspection so you know what you may come across & allow for the unexpected by at least an additional 10-20%

· COSMETIC FIXER UPPERS ARE THE BEST PLACE TO START if you’re a neophyte

· DO THE MAJORITY OF THE WORK YOURSELF, if possible; but know when you need to hire the work done by a professional. I've learned not only to strip wallpaper & paint, but to patch dry wall, install lighting fixtures, & set toilets: much of what needs to be done for cosmetic changes only.

· FIND DEPENDABLE CONTRACTORS, recommended by people in the business -- local real estate agents are the perfect source. CHECK REFERENCES!

Studies indicate the majority of America’s wealthiest people make at least the largest portion of their money through investing in real estate. Most investments, however, are for 10 years or longer. Another way to help add to your bottom line is to “slow flip.” By living in a home for a minimum of two years, you have serious tax advantages. Up to $500,000 of profit is tax exempt under most circumstances. Make sure to talk to your CPA about the restrictions.

Horseshoe Bay has many homes in need of remodeling, but prices aren't always indicative of the amount of work needed. If you plan to buy a home to redo, talk to your agent about how much you plan to spend on the remodel & how long to plan to live there before putting it back on the market. Planning is imperative if you expect to make a profit.

The Good Ol’ Boys Need to be GOOD 'N GONE

2008-01-28T15:36:00.000-06:00

Along with most PEC members and Horseshoe Bay residents, I’ve been happy to hear of the retirement of PEC board members Bennie Fuelberg & Bud Burnett. The scandal at Pedernales Electric Cooperative has been mind boggling even by Texas standards. No doubt, many are hoping to hear the last of it. But I agree with assessments as diverse as HSB resident, Republican state Senator, Troy Fraser, members who called for the board resignation last summer, and the editorial staff at the Austin American Statesman. The books need to be open, the audits need to be independent, and ALL the good ol’ boys need to be GONE.

The PEC was established by President Lyndon Johnson during the Great Depression to provide electricity to the Texas Hill County. Based in Johnson City, it now has 220,000 customers, covers 8,100 square miles (larger than the state of Massachusetts) & has $500 million in annual revenue. It’s the largest electrical co-op in the country.

In May, PEC member Lee Beck Lawrence filed a class action lawsuit against PEC and 19 of its leaders accusing mismanagement & seeking reform. Since last year’s lawsuit filing a criminal investigation is now under way. District Attorney Sam Oatman, prosecutor, announced last week that he will open a preliminary investigation of the PEC, including questions raised about excessive board member expense charges. According to recent disclosures in the above mentioned lawsuit, Pedernales executives and board members charged $700,000 from 2002 to 2006 on co-op credit cards for expenses such as first-class airline travel & exclusive hotel stays. Court documents also show that board President W.W. "Bud" Burnett, whose staff role as "coordinator" for the utility enabled him to draw $1 million in pay since 2001, testified that he knew little about the co-op's operations. Burnett had no office, staff, files or regular hours at Pedernales Electric.

Members only recently learned that General Manager Bennie Fuelberg obtained a five-year, $2 million deferred compensation package in 2004, on top of his annual $390,000 salary. The compensation was revealed in November, just months after Fuelberg's salary was reported for the first time in a decade.

The lawsuit is in settlement negotiations. I am hopeful it will lead to the much needed audit & not be limited to the four year period currently listed in the suit, which is restricted to that time frame by the fraud law limit. This board is a failure in their managment, oversight, & responsiveness to member's concerns. The only good place for them to be is GONE.

The Village of Horseshoe Bay

2008-01-21T16:57:00.000-06:00

New plans are in the works for updating some of Horseshoe Bay Resort’s favorite amenities. Last Thursday, January 17, Ron Mitchell, Resort Vice Chairman, hosted a community wide meeting at the Marriott to explain the changes, additions, & improvements they would like to make & are currently being considered by the city council. Tomorrow’s (January 22, 2008) 3:00 pm council meeting will discuss the proposal.

Called “The Village at Horseshoe Bay,” it is a study relating to the changes of existing developed & undeveloped properties owned by Horseshoe Bay Resort & includes everything from the renovation of some amenities to a complete relocation & redesign of others. It takes into account current land use of areas abutting Resort owned property such as neighborhoods of single & multi-family homes. A connectivity & traffic impact study was also included. The land in question consists of 14 tracts of land in the corridor from the FM2147 & Horseshoe Bay Blvd. entrance to the Yacht Club as well as property surrounding the existing hotel district, putting course, & Oriental Gardens. The traffic connectivity & impact studies also included projects not owned by the Resort, such as the Marina Village & The Waters. Some of the proposed changes are:

Tract 4

New 22,000 square foot spa
New 10,000 square foot tennis & fitness club
Four relocated new hard surface tennis courts

Tracts 6 & 7

New tennis & fitness parking

Tract 9

900 foot long lazy river & family pool facility

Tract 13

Completely renovated marina complex & ship’s store

Tract 12

Yacht Club enhancements including a new 24-slip day dock, 10 jet ski ramps, & a casual, lower level lakeside dining facility with outside seating & separate bar area.

The new spa, tennis, & fitness facilities would be relocated beside the existing Oriental Gardens in the area of Hi Circle North, Free Rein, & Short Circuit. The lazy river & pool amenity would enhance the current Whitewater putting course & be convenient to the Marriott Hotel. To help traffic patterns to the newly proposed spa, fitness, & tennis center, they are also planning a new entrance off of FM2147 at what is now the old construction entrance (used when building the Marriott) at about Free Rein & Stones Throw. Additional Marriott parking & Yacht Club parking (two sights) are also included, as well as new foot paths & tram services.

It was an exciting meeting and I, for one, hope residents & the city council will support the Resort's efforts.

You Can Take the Texan out of Texas, but ...

2008-01-18T12:34:00.000-06:00

Four years ago I got a phone call from my husband & partner in crime, “Honey! I FOUND IT. The place we’ve been looking for. It’s called Horseshoe Bay & we gotta move here.” My husband travels for work – way more than either of us would like. But this time, was different . Let me explain.

I’m a Texan, born of Texans, several generations back. I met Bus (a.k.a. Roy) in Fort Worth, at a bar (sorry Mom), after an art show. I was still dressed like a cowgirl – hat, boots, jeans, the whole do-dah. The show was at the annual Fat Stock Show at Will Roger’s. Bus is a Yankee so he ain’t from around these parts. I think he fell in love with the hat.

So several years ago, when business took him to Marble Falls, Roy was smitten all over again. Even though we lived in Texas, he’d never been to the Hill Country before and never heard of Horseshoe Bay. When his business was done that first day, Roy’s client, Bob Sewell, of Johnson Sewell Ford invited him to his home in Horseshoe Bay, introduced him to his friends & family, took him for a boat ride, fed him dinner, plied him with liquor – the works. Roy’s originally from Seattle -- hence his love for any & all water. Fortunately, he did get the sunshine & heat gene some Northwesterners are missing.

By the time I got the phone call we were living in Chicago. NOVEMBER. In Chicago. Did I mention I’m originally from Texas? Every year several of us artists would travel to Kerrville, to the YO Ranch to play, photograph, & paint. I’ve been in love with the Hill Country since I first set eyes on it 30 years ago. He didn’t have to “sell” me. Within a few months, we’d made a couple of trips together, found a realtor we loved & bought our first lot. Several years & lots later, Ginny Rhodes, that same wonderful realtor & friend encouraged me get my license & become her partner. Even though Gin & I aren’t working for the same office any longer, we’re still best buds. Thanks, Gin, for everything!

At the time Ginny suggested real estate to me, I was founder, owner, operator, teacher, janitor, bill collector, plumber, supply clerk, bookkeeper, marketing manager, of Renaissance Fine Art School, located in the Chicago suburbs. Roy & I had always dabbled in real estate, so I was intrigued. I’ve come to realize now I've been a Realtor a while, there are many more common skills between the two professions than I would have thought originally. Supervising 20 ART TEACHERS was kinda like herding cats. So is coordinating sellers, buyers, inspectors, title companies, builders, developers, bankers – you get the picture. Try negotiating contracts without being CREATIVE! There are no ugly houses -- only untapped POTENTIAL!

Blending my two professions took a little bit of work, but it was well worth it. I’m very lucky. I get to live, work, & play in Paradise. Come visit us in Horseshoe Bay. You’ll see what I mean!

LET'S BACKTRACK

2008-01-15T15:27:00.000-06:00

I thought, for my next several postings, I should share some general information about Horseshoe Bay: the city, resort, subdivisions, surrounding area, & maybe some information about myself. Today’s post will include general information about Horseshoe Bay.

Horseshoe Bay is a newly incorporated city which includes, but is not limited to, Horseshoe Bay Resort. The Resort is a private, member’s only club. It takes in several subdivisions which will be the topics for future postings. Horseshoe Bay Resort, built on the shores of Lake LBJ has 3 championship Robert Trent Jones golf courses, a one-of-a-kind, par 72 putting course, three stunning swimming pools, a beautiful white sand beach, state-of-the-art spa and fitness facility, full-service marina, first-class restaurants, twelve professional tennis courts & a 300 plus room Marriott Hotel.

The Resort also has a Jet Center that can accommodate DC 9 aircraft & has recently purchased three 30 passenger jets they will use as charter aircraft to market golf packages in and outside of Texas. They also have signed a contract with a small passenger jet liner to include jet service into our airport for resort members & guests. We also have a "fly-in" community around the jet center & the new SKYWATER development (see below) will also be adding their own aircraft friendly enclave, as well.

Resort initiation fees and dues are a remarkable value. E-mail me for more specific information: janlbusse@gmail.com Some properties qualifiy for a membership initiation fee waiver.

We started investing in Horseshoe Bay about 4 years ago, and feel even stronger today than we did then. I think there are several big factors that continue to make our property values so strong.

First, our prices are still significantly below most resort communities, in Texas & around the U.S. Across the board, homes are less expensive here than in most major markets. MORE IMPORTANTLY the Texas economy & housing industry remain strong while the rest of the U.S. is undergoing a market correction. Central Texas in particular keeps getting kudos for our affordability & quality of life: Business Week article. Our property values never soared & our buyers rarely used second tier mortage money, which has been so hard hit outside of Texas.

Second, is the marketing money being pumped into HSB by a number of major, national players:

SKYWATER, a brand new Jack Nicklaus designed golf community, Tom Fazio designed ESCONDIDO golf club, & the Hill Country Marriott . All have national campaigns. ESCONDIDO & SKYWATER are separate, members only clubs, but many of their members are also members at HSB Resort. Both are located in the city of Horseshoe Bay. If you’re counting, we’re now up to FIVE world class golf courses.

Third, our proximity to Austin & San Antonio gives us the best of both worlds: cosmopolitan convenience coupled with small town charm. With today’s technology, Horseshoe Bay is a serious candidate for commuters & business people who office from home. Located in the geographic center of the state, we’re an hour from either Austin’s or San Antonio’s international airports, & half an hour from regional shopping, world class medical facilities, arts, & entertainment.

Fourth, Lake LBJ is a constant level lake, with no more than a foot variation in water level, (See January 14, 2008’s post about lowered lake levels) it is regulated by the Lower Colorado River Authority. Droughts and floods don't affect LBJ, unlike most other lakes. Your investment is secure & our mild climate makes it easy to enjoy the outdoors 12 mos a year.

IT’S ALL ABOUT LIFESTYLE: Enjoy the bustle of hotels, shops, sports, & fine dining, the exclusivity of a privately gated community, waterfront property, or the serenity of endless hills & equestrian estates. The choice is yours – the LIFESTYLE IS HORSESHOE BAY.

From Lake Front to Creek Side in Less Than A Week

2008-01-14T14:05:00.000-06:00

My first blog entry & it’s quite an event! Horseshoe Bay, built on the shores of beautiful Lake LBJ has a new look! The lake level is down five feet and what were once coves & canals are now dry beds and trickling creeks. My husband & I live on the open cove where Slick Rock Creek flows into the lake. You can see by the photos the change is dramatic! All of what looks like beach -- the areas without vegetation -- is normally under water. It took about three or four days to slowly draw down the water. The last time the lake was lowered was 2005. The Lower Colorado River Authority (LCRA) says it will take about the same amount of time to refill. They chose now to avoid with the tropical storm season, the peak system recreational demand, & prime fish spawning, which begins in March.

My husband, Roy, Dutch our chubby chocolate Lab, & Dutch's skinny & beautiful girlfriend, Lady went out this weekend to check our waterfront lots. It was a beautiful weekend, about 67 degrees and bright sunshine. The first photo above is from our lot in Wilderness Cove. It's one of my favorite subdivisions on LBJ, private & gated, with estate sized lots & over 65 acres of green belt. We're in the final planning stages of building a spec house on lot #7. It won't be listed until it's further along, but I do have a virtual tour for it. Look at the difference from just a few months ago when the lake was full: Wilderness Cove #7 virtual tour. We ARE marketing lot #35 in Wilderness Cove. Find it & all my other listings on my real estate web site: http://www.janbusse.com/

Photo #2 is from our lot on Applehead Island, virtual tour which is also in the MLS & on my web site. It's one of the few remaining open water lots on the Island. The final photo is a view from our dock, looking up the cove toward Quail Point. Quite a dramatic change from just over a week ago!

We’re very lucky on Lake LBJ: it’s one of the very few constant level lakes in the country. Because of Ferguson Power Plant, our lake levels don’t fluctuate more than twelve inches unless a planned event like this is scheduled. The plant is natural gas powered & cooled by the waters of the lake. In cool weather, jet skiers love the plant's warmer waters. Whether the rest of the Highland Lakes are dry or flooding, Lake LBJ is still within twelve inches of its normal level! Just another reason property values are so strong on our lake.

Since the 500 year event floods last spring & summer, the LCRA approved extending the already slated lake lowering from four to eight weeks. This will give residents time to repair & maintain docks & boat houses and allow for shoreline maintenance, debris cleanup and controlling nuisance plants. We did our major repair last summer, but plan to do some dredging under the boat house while we have the opportunity. If you’re planning on doing lake work, you’ll need to apply for a permit during the draw down. Be ready, however to remove any equipment quickly. If there’s an unexpected flood or more hydroelectric units need to be operated on the upper Highland Lakes, the lake will have to be refilled on short notice.

IMPORTANT TO FELLOW WATERFRONT OWNERS:

My good friend & fellow Keller Williams agent, Ray Gill reminded Roy & I to turn off our automatic lawn sprinkler system that siphons lake water! Good thing he did -- the intake is laying in the mud right now.