Graduations: Today Here, Tomorrow Where?

It seems a millenium ago that my senior class at Houston St. Thomas High put on academic robes from the era of the middle ages and paraded across a stage to handshakes, diplomas and the familial tumult of proud and excited relatives and friends. Some of us had scholarships, some knew that Notre Dame or The University of Houston, or Rice Institute (now University) or one of many other institutions were awaiting our genius. There was only optimism to be seen or heard anywhere among us. After being placed on Rice's accepted-but-waiting list, I chose the more certain path to The University of Texas at Austin, where I was told I would be in something called 'Plan II', an accelerated liberal arts program. Not even sure whether Plan I was better or not, I fled in my 1958 Ford to the shining future in the state capital, where adult freedom awaited.

Well, as every single one of you over 35 knows, it is good to start young, because the passage of time guarantees only that we grow older, if we live. Whatever life successes or lack of same, we find that our anticipated assumption of great things to come falls somewhat short for most of us. Wars, health, accidents, foolishness of youth, all of the vagaries of mortal kind color and shape even the most glorious life experience. Princes and presidents and paupers find common ground in this truth. Yet life is worth the effort, family and friendship, courtship and love, teamwork and bonds forged in common victory or loss, all enrich us and allow deeper understanding. Then comes, to many, parenthood and the witness of another generation beginning the same cycle, unwilling and possibly unable to avoid it's own stumbles by learning from the advice and warnings of our most sincere guidance. They are eager to flee our protection and concern as fast as their own transport can convey them, speeding headlong into their future, which will certainly be bright and fulfilling, of course.

Except for financing it all, as we know. Mom and Dad are still looked to for the the boring stuff, like rent, food, clothes and transportation, among other things. Of these, only the rent category can be made to actually benefit parents over the term of a collegiate's education, while allowing the younger set everything this new freedom requires. Unless your youth is a budding Michael Dell, your primary hope for a positive return on your endless expenses is the purchase of a residence for your student's use rather than 4 or 5 years or more of monthly rental payments which purchase neither equity nor market appreciation, such as Austin has experienced since it's founding. Austin has about doubled in size every twenty or so years since it has existed, through every war, recession, depression and real estate cycle.

If you have other kids following the first, your gains can be made even more attractive. But in any case, this choice allows room rentals to other students, which can help with payments and upkeep, it allows tax advantages, and it creates real gains through increasing value over time. Of primary importance is obtaining the assistance of an experienced real estate professional who understands the university market as well as investment buying. Over 25 years of buying and selling for clients in the UT, Concordia and St. Edward's areas have demonstrated my skills in this market. I enjoy dealing with students and parents and any extended family or advisors involved, and will be pleased to speak with you about personal representation and assistance in evaluating your options.

Here's Looking At You...

Wife Judy saw her eye surgeon this morning, and it was good news so far; the procedure seemed to have been as successful as we hoped to this point. Of course, the ultimate test will be over the next 6 - 8 weeks, when her sight in that eye will either recover, or it will not. After two surgeries in two weeks, and 7 days of keeping her face turned down to allow proper healing, she was delighted to be again among the vertical. This joy was, of course, tempered by the knowledge that the final result will not be known for weeks, but it was real enough to us both that we celebrated with a spontaneous lunch downtown.

This ability to accept whatever promise is held out to us rather than to respond only to ultimate results is what allows us to function in everyday life. Setbacks come along all too often with no immediate conclusion to relieve our concerns, yet the days and weeks and months must be met and dealt with, and maybe even enjoyed in spite of lingering doubts. Some call this hope, others optimism; I think of it as equilibrium, a balancing of misfortunes that may come with whatever currently gives us energy, an inner lift, a spark of belief that we can and will deal with most anything one way or another.

Deciding to enter the home buying fray in our current market, with uncertain financing, continued drops in market values in some parts of the country (not so much in Austin, I am pleased to say), weak employment realities for many, is something like that. So many variables, conflicting advice, disagreement among the TV talking heads, daily bad news about bank failures and layoffs. How can we ever come to a reasonable decision, a balanced review of our chances at finding the home you want, understanding the most accurate value relative to current and future markets, getting qualified for a loan, knowing what the many purchase options are among short sales, REO and the like, and do I want to consider them? There is no easy answer for these questions, but there is certainly a reliably wise decision to be made: find an experienced real estate professional whom you can trust, and with whom you can communicate. He or she can and will help you navigate through the fog of today's home-buying confusion, and even help you decide just what it is you really do want.

With today's low interest rates expected to go up soon, home prices lower than in years, a huge inventory of homes on the market, this is the best environment most of us will ever see again for buying a home. The positives far outweigh the negatives for most buyers. Make the decision, call the real estate broker or agent of your choice soon.

Mortality, You Can't Live Without It

A close relative passed away just a few hours ago. She was my cousin's second wife, and an intelligent and successful man himself, she was his greatest success. Not only did he find and win this lovely, brilliant, practical woman, he managed to keep her long enough to have two great kids who became great adults, and together they collected the big house on a hill and financial security and reached their retirement years still a family. She was a bright light in our tribe, always welcoming, always deeply concerned for all of us and our problems. Her home was open for countless Easters and other events, and she and her family rarely missed a gathering wherever it was. No one worked harder or with less complaint to ensure the success of these soirees, nor was faster to share any cost incurred.

She had no history of serious illness, just a few headaches shortly before the end, and the news that such a dynamic and beloved presence among us was suddenly no longer there was a real and visceral blow to us all. It is causing some of us to take a new look at our own lives and subsequently our individual priorities. Are we chasing the right goals? What do we really need and what is only ego? How do we want to spend whatever time is left to us?

Daily life's demands keep us focussed on the mundane things that have to be done. Rarely does an event come along that makes us pause and reflect on our core assumptions, and possibly lead to a re-ordering of them. Many of us today are going through something like this kind of crisis with our employment issues, or mortgages, or both. Can't make the house or car payments, can't sell, no good options. But will it make you re-think of the real need for such a large home? Can you be happy with something smaller but less demanding of your resources? Is it possible to allow a few others grander dwellings and still be content?

Sometimes terrible events push us past were we have been before, and sometimes the change can lead to happier and healthier lives, in spite of the initial shock and distress. I would like to think that my wonderful cousin-in-law's unexpected death might be the cause of yet more good in the world. She did enough while alive to more than justify her time on earth, but I promise you she would be pleased to know that death couldn't stop her from continuing to help us.

Trust, But Verify?

Who said that? Was it Reagan? No matter, it does have the ring of 'truthiness' to it, as a currently popular TV comic says. But it also has a significant dose of cynicism, doesn't it? It doesn't specify just a particular class of people to 'verify' before trusting, it states that all trust must be reviewed as a matter of course. If followed dogmatically, such a philosophy would just about paralyze all human interaction, wouldn't it?

How could you leave home without checking back every time on the significant other? How could you trust your kids to come home from school every day without getting into trouble without unfailingly following them? Could you really leave your car keys with the parking valet without riding with him in the passenger seat? How about all of those people who handle your food in restaurants, or in stores, or on farms, or on the delivery trucks? Are you going to 'verify' your institutional trust in their innate good will and sense of decency, or find a way to check up on every facet of food handling? Hire inspectors? Who will check the inspectors for you?

We trust without verifying every day, and nearly every hour of every day, in some way. In the real world we license professionals of many industries to ensure at least a reasonable expectation of competence. Police, attorneys, teachers, doctors, dentists, engineers, architects, electricians, and even real estate practitioners, among many others, require licensing and a minimum level of continuing professional training to remain licensed. But none of this ensures that a particular licensee has all of the qualifications or qualities you need or want for a particular job. Is he enthusiastic? Friendly? Dedicated? Knowledgable? Have good communication skills?

This is where 'verify' makes sense. A personal reference, or even a review of comparable work experiences can go a long way toward helping you select the right individual to represent you.

After over 25 years in my profession of real estate, I can provide as many references as needed to reassure a potential client of my capabilities. Feel welcome to contact us and ask for such information.

Jack Josey Newman

About TIme...

Palestinians are firing rockets at the Israelis, who are attacking the Palestians, who are supported mainly by Iran, who is also supporting the Iraq and Afghanistan bombers, who are also occupying Pakistan, whose suicide fanatics attacked India, the latter two nations of which have nuclear weapons.

And we are really concerned about the economy and an Illinois governor who has an extremely bad haircut and worse judgement about when and where to plan shakedowns, right? Heck, the economy hurts us right here and right now, and that other stuff is sort of like tsunamis, or massively overloaded ferrys that overturn and drown hundreds of people. Great conversation starters, good for head-shaking, but nothing we can do much about, directly. Well, I don't have a plan for avoiding future ocean-borne disasters either, so isn't the state of real estate a real mess?

Here in Texas we are apparently doing pretty well compared to most other areas. That's what we hear, anyway. You tell a seller, someone who bought a property from you just a couple of years ago, who needs to get out from under that now-anchor pulling resources and credit ever deeper, that even with new paint and fixing-up, that house with ugly carpet and no-bathtub-only-a-shower has little chance to sell anytime soon. Prices are dropping steadily in most places here, and unless a property is clean and 'special', price is all there is to compete with. In a market with so many foreclosures and pre-foreclosures and just-rented-to-hang-on-as-long-as-we-cans, both sales and leasing prices are affected, and not in a owner-favorable way.

Of course, the best option is to hold the property if possible, continue to occupy it, until real estate recovers. When not possible, and a lease is not the answer either, a seller absolutely needs the advice and assistance of an experienced individual to help make the decisions on preparing the house and grounds for market, within the sellers' available budget, priced very competitively and targeted at the most likely buyers for that property. This process will determine the chance for successfully selling the house within a reasonable time frame.

Usually this advice will be obtained from an active real estate agent who knows something about the area, has had experience with different markets, who can explain various ways to increase the appeal to buyers, and who has some skill in estimating the costs of property preparation and how such work would affect the sales price. Not all agents have all of these skills and abilities.

Since 1983, I have been active in Austin real estate, and that includes every market cycle, up or down. I have been a residential appraiser, and although I am not currently licensed as an appraiser, I certainly retain that knowledge. I have owned an investment-property management company since 1986, and have long experience with house repairs and their costs. Over 25 years worth of clients have taught me what buyers look for and what they must have before they will make an offer. When it's time to negotiate, I excel at advising clients on their options at every stage. I personally follow each pending deal through the maze of timelines and important deadlines, to a successful close. All of my clients are important, and all get my full attention.

Since we can't solve the world's most serious problems from here, let's focus on your real estate issues. We can deal with those.

Jack Josey Newman