Remember foreclosures, weekly price reductions and low ball offers? In case you haven’t heard, the market has changed! In Van Alstyne and other North Texas cities, those conditions have passed. Most real estate agents will always tell you it’s a great time to buy but I am going to present some facts so you can make an informed listing or home buying decision.
I recently attended a Realtors Association seminar on 2014 expectations with Dr. Mark Dotzour, real estate economist from Texas A&M. Spring is coming and that is always when sales pick up but here are the more important highlights of why it couldn’t be a better time to sell your home. On the flip side, buyers need to be aware that they have to move fast, be pre-approved for financing and may be faced with bidding competition.
Van Alstyne Real Estate Market
Based on the North Texas Real Estate Information System (MLS), the current(2-10-14) average sales to list price percentage in Van Alstyne is at 98% with only 80 days on market to achieve a sale. Surrounding cities like Anna are even hotter at 99% and 53 days on market. In some cases, we are seeing properties sell ABOVE list again. If you have been listening to real estate investor seminars about buying low and flipping properties you may be in for a shock.
11 Reasons Why The Real Estate Market is Hot
1) Low Inventory – Sellers have been holding off until the economy improved
2) Low Financing Rates – Mortgage money is cheap
3) Flat Inflation – Keeping rates low
4) High Corporate Profits – Job growth, relocation to Texas and need for housing
5) Low Debt Service – Consumers have been paying down debt to historic lows
6) High Consumer Confidence – People are shopping again
7) Pent Up Demand – Remember those people who were going to rent forever?
8) Seasonal Pressure – Spring is just around the corner
9) Move Up Buyers – Buyers can get more house at today’s rates
10) Wealth Creation – Prices are increasing at higher rate than financing costs.
11) Foreclosures Down – Texas foreclosures clear faster than other states
How To Win In This Real Estate Market
Sellers
Homes with long days on market frequently have deferred maintenance so paint, upgrade and clean up your home before listing your home for sale. See my article on your homes first showing for ideas on how to prepare and make your home memorable.
Even in a hot market you must price your home correctly. Don’t price too high and expect the market to catch your price. If you make a pricing mistake, better to price lower and create a bidding war than pricing high and helping your neighbor sell their home against yours. Be careful about using internet valuation methods. See my article on Zestimate accuracy to learn why. Contact a trusted Realtor to get a true picture and advice about current market conditions.
While you want to maximize your price, realize that there are things you can do so your home will sell faster with less hassle besides pricing. Consider a presales real estate inspection not only to make repairs beforehand but to be able to stand out as being problem free vs. other properties. Have a current survey ready, T-47 Affidavit notarized and a Sellers disclosure completed. Consider a roof evaluation for hail damage and septic service if applicable. Offer a home warranty, pre-pay HOA dues or include items like appliances or other personal property.
While you are considering including things, resist the urge to exclude items. Remember that when someone tells you that you can’t have something, you tend to focus on it and want it even more. If something is so important that you want to exclude it, remove it instead so there won’t be any issues. One of the most important things you can consider is helping with closing costs. Making your home easier for a buyer to buy will help your home sell quicker.
Why should you do these things in a hot market? You don’t have to offer anything or prepare ahead of time but if your goal is maximize your price as well as sell quickly, make your home easy to buy and the process enjoyable to both sides. Faster sales equal more profit because it’s likely any additional money you receive by holding off will be eaten up in holding costs. Those mortgage payments keep coming so why pay the mortgage company unnecessary interest when you can get on to the next goal in your life?
Buyers
Realize that the days of low ball offers are gone. Talk to your Realtor about what similar properties sold for, the average days on market and what an appropriate offer should be. A good Realtor can tell you how close to the list price homes are selling for in your area.
Get pre-approved so that when you find your dream home you can beat other buyers to the punch. Clear any credit issues you may have and know what you can afford. Talk to your Realtor about an appropriate earnest money deposit, option fee and closing date.
Don’t wait until you are under contract to determine who will do your inspections, provide insurance, home warranty, survey, possible repairs and check out schools, utilities and other services. Be flexible on when you can close and don’t expect everything found on the inspection to be corrected.
Regardless if you are buying or selling, consult a Realtor to advise you and represent your best interests. I know a very good Van Alstyne Realtor. Call me at 469.233.1234 and I will help you avoid any pitfalls on the way to your dreams.
