Why Virtual Reality Works For Real Estate

By embracing the VR transformations, a sales team or real estate professional can shorten the buying journey and help buyers and sellers navigate a purchase of a property while under construction. The main advantages to adopting VR in real estate include:

• Accelerates The Sales Process : While 2D renderings were a technology advancement in sales tools, many buyers have trouble visualizing the property until construction is complete. With VR technology, buyers can virtually “walk-through” the non-existent property, see the finishes, and understand the spacial layout for the property. Buyers don’t need to visualize the property as the technology displays the property as if it was built.

• Cost Effectiveness : VR will eliminate traditional marketing initiatives and provides a cost-effective solution. How many model properties were built for the sales team? What was that cost? Access to VR technology, which gives buyers a similar “walk-through” experience plus the ability to display all finish options, is a cost-effective solution. Alternatively there may not be a model home; the VR walk through would provide a cost-effective marketing solution while the property is under construction.

• Global Reach : Customers can virtually view properties from anywhere in the world, opening up the target market. Is your target market limited to the local audience or throughout the world? Provide access to the VR walk through and anyone can virtually view the property.

• Enhanced Customer Experience : Buyers have freedom to explore the property as they wish. Each buyer is unique and will focus on what is important to them. One buyer may focus on the kitchen while others may focus on the master bathroom, pool, library, media room, etc. Every VR walk through allows buyers to personalize their tour of the property.

• Customer Feedback : With every buyer VR walk-through, sales team members receive key insights into the buyers behavior and preferences, allowing them to improve future interactions with that buyer.

Purchasing a Home – Where Do I Begin??

Buying a home may be overwhelming, frightening, and frustrating. For most people, a home is their biggest investment. Purchasing a home can lead to an emotional roller-coaster. But with a little help and guidance, you can overcome the obstacles and manage some stress.

Where to begin?
To start, first look at your own financial situation. What is your credit score? Your credit report is very important. It effects many aspects of the mortgage, most importantly, interest rate, payments, and fees. The Fair Credit Reporting Act requires each of the three credit report companies (Equifax, Experian, and TransUnion) to provide you with a free copy of your credit report once every 12 months. According to the Federal Trade Commission, only one website is authorized to fill orders for the free annual credit report you are entitled to under law. That website is Annual Credit Report. A credit score above 700 will get you a good deal on your mortgage. If your credit score is lower, you may be required to pay higher fees or down payment.

Secondly, reach out to a mortgage banker, also known as mortgage broker, bank, or lender. To properly search for a home, you need to know what you can afford. The lender will inquire about your financial situation. They will request tax returns, employer, employment status, bank account records, outstanding loans, and credit cards. Based on your debt to income ratio, the lender will provide a “pre-qualification” letter. This letter is to be shared with your real estate agent, and will specify your down payment, mortgage, and total purchase price.

This leads me to the last obstacle, the down payment. If you are a first time buyer, there are mortgage programs which minimizes your down payment to 3% or 5% of the purchase price. If applicable, make sure your lender is aware that you are a first time buyer.

If you are an experienced buyer, assume a down payment of 20.0% of the purchase price. If your down payment is less than 20.0%, then expected to pay Private Mortgage Insurance of PMI. PMI is a monthly fee on top of the PITI payment.

These simple steps will get you closer to purchasing your home.

Mortgage Types, which one for me?

The mortgage industry can be very confusing. Understanding the different types of loans can save borrowers money on monthly payments. There are 6 major types of mortgages: Conventional, Jumbo, VA, FHA, USDA, and Reverse.

Congress established a financial services corporation called government sponsored enterprise ("GSE"). Their intended function is step up government backed loan types. One way to differentiate loan types is based on their GSE eligibility.

Conventional loans are GSE loans as they meet the requirements set forth by two GSEs, Fannie Mae and Freddie Mac. One of the main components of determining if the loan is conforming is the loan amount. When the loan amount is under $417,000 and meets the requirements of the GSEs, the loan is conforming. The conforming limit is $417,000, however this figure can change by state and year.

If a loan meets the requirements of Fannie Mae and Freddie Mac, but the loan amount is above $417,000, the loan is a "Jumbo" loan or non-conforming. Jumbo loans are bigger in size and carry higher mortgage rates as a result.

LESSON - If a buyer is buying a house for $525,000, the 20% down payment would be $105,000, and the loan amount would be $420,000. This is a Jumbo loan as the loan amount is above $417,000 - even if the loan meets the criteria of Fannie and Freddie. Jumbo loans carry higher mortgage rates so by increasing the down payment to $108,000 (or $3,000), the loan would be $417,000 (conforming loan), the mortgage rates would decrease from jumbo rates to conforming rates. As a result, the borrower would save money on the lower interest rate.

FHA Loans are insured by the US Federal Housing Administration. FHA insured loans are a type of federal assistance and allow lower income Americans to borrow money for the purchase of a home. Typically, first-time buyers qualify for FHA loans.

VA loans are guaranteed loans by the US Department of Veteran Affairs. The VA loan is designed to offer financing to eligible American veterans when private financing is not generally available and to help veterans purchase properties with no down payment.

USDA loans are home loans offered to rural property owners by the US Department of Agriculture. The USDA loans are guaranteed loans. The property must be located within the USDA RD Home Loan Map. 

A Reverse Mortgage is a type of home loan for older homeowners that requires no monthly mortgage payments. Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they or their family sell or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. Borrowers are still responsible for property taxes and homeowner’s insurance.

What Will My Property Value be in 2020?

Wondering what your property will value at this year? In the city of Austin, the answer is most likely the same as last year. The TCAD (Travis County Appraisal District) does not intend on reappraising properties this year.

So, why wouldn’t TCAD want to reappraise properties in one of the hottest housing markets in the country? The short answer is that they can’t get it done this year. TCAD has been in a dispute with the Austin Board of Realtors (ABOR) about where it has been obtaining its property value data from. in recent years, TCAD has obtained such data from the MLS, the same service that ABOR uses to buy and sell homes. Now, ABOR has sent a cease and desist letter to the Travis County Appraisal District and stopped them from using MLS data, which has been a key determiner in the appraisal valuation of homes.

In the state of Texas, sales prices for homes are not required to be disclosed, so without the MLS data, all the Travis County Appraisal District can do now is ask home owners to voluntarily share data with them. Without measurable data, it is anybody’s guess what will happen this year. It is likely that many home values will remain the same this year. If you have a homestead exemption, the most you will see your property value go up in any year is 10%, so it’s possible that TCAD will just defer to the 10% increase, especially if a home’s taxable value is still below the market value of the home.

School districts and other public services that rely on property tax funding could also be impacted this year. So what will 2020 bring? We will have to watch ongoing discussions between ABOR and TCAD. However, right now it looks like the property tax bill you receive in the fall will look a lot like a blast from the past.

The Waterloo Greenway Project

We all know that Austin is known as the “Live Music Capital of the World.” But now, thanks to Phase I of the Waterloo Greenway Project, Austinites will soon be able to listen to that live music in one of the newest outdoor amphitheaters in the world.

Currently under renovation, Waterloo Park is 11-acres and sits between 12th Street and 15th Street along Red River Street. The renovated Waterloo Park will include more than 1.5 miles of tree-lined hike-and-bike trails and a 150-ton heritage live oak from the State Capitol Complex that was relocated to Waterloo Park in February of 2019.

However, the main attraction of Waterloo Park will be the new outdoor Moody Amphitheater that will hold 5,000 people for concerts and performances. The space will also have rooftop terraces and VIP viewing platforms. Just this week, this venue became even more promising for music loving Austinites, as the Waterloo Greenway Project announced its new partnership with booking agencies C3 Presents and Live Nation, ensuring that this amazing new venue will book and sell tickets to some of the best acts in the country.

Above are pictured: Moody Amphitheater under construction; a rendering of the completed concert venue; Waterloo Park Hike & Bike Trail Renderings Photo Credit: Waterloo Greenway Conservancy.

Waterloo Park and Moody Amphitheater are just Phase One of the Waterloo Greenway Project and are set to be ready for use in the Fall of 2020. However, once the entire Waterloo Greenway project is complete, the greenway will be a 35-acre park system that runs from East 15th Street and along the eastern edge of downtown to Lady Bird Lake. The Waterloo Greenway will eventually connect the greenway from The University of Texas all the way to Lady Bird Lake through one continuous three-mile path of trails. This will also connect to the Ann and Roy Butler Hike-and-Bike Trail and Shoal Creek Trail.

The cost of the Waterloo Greenway Project is projected to be $250 million dollars and is expected to be paid for by a combination of public and private funds. Through bond funding and other sources, the City of Austin has committed approximately $150 million. Waterloo Greenway officials say they have plans to raise the remaining $100 million from individual, foundation, and corporate contributions, grants, and more. For more information about or to donate to this upcoming park project, click the button below!

And, in addition to UT Football, start clearing some of your 2020 fall weekends to hang out and listen to live music in our amazing new Waterloo Park and Moody Amphitheater!