In this real estate market, is it acceptable to make an offer?
Let’s face it, the last 12-24 months have been brutal for buyers in the Dallas-Fort Worth real estate market. Buyers were forced to contend with low housing inventory, high demand from other buyers, multiple offers and, of course, the awful price gouging.
As we discussed last week in Tarrant County on Tuesday, we’re seeing signs of real estate heading towards equilibrium – remember, that doesn’t mean ‘bubble’, ‘recession’ or ‘sales’. a life” – where inventory is slowly creeping up and homes stay on the market a few days longer.
Is the asking price always a suggested starting price?
One thing that many buyers haven’t done in a long time is even consider bidding on a home that’s lower than the asking price. The asking price has been more of a “suggested starting price” for many homes, as the market has seen several offers with prices starting six figures above the asking price.
Frustration, disappointment and anger have been the top buyer emotions recently. Many just stopped looking altogether and decided to rent. Others haven’t even bothered to bid when the asking price is at the peak of their budget for fear that their offer won’t even be considered.
This could all be slowly changing. Yes, houses are still going fast. Yes, we still see multiple offer situations. Yes, houses always cost more than the asking price. However, this isn’t happening as much as in the past, which should give buyers some pep in their move.
Let’s look at the data.
While the numbers don’t always tell us everything about real estate, it’s worth looking at the data to see if there’s a trend, particularly in terms of what buyers are offering versus the asking price for the houses. Here’s a quick search of a few Fort Worth neighborhoods with different price points and nearby communities for the average sale price versus asking price over the past 90 and 30 days.
It seems that over the past 30 days, many regions have seen a few less outrageous excessive price offers. The only community that saw a slight increase is Aledo. If buyers are looking to go to the Aledo area, there may not be much wiggle room on price.
What about crazy offers of over-demand?
Look, if someone wants a house and they can afford it, they’re probably still going to bid extremely high. Inventory remains low and when homes are ready to move in and meet all the needs of a desperate buyer, expect multiple offers and high demand offers. But again, let’s look at what the data tells us.
Here is a breakdown of the same communities mentioned above and the difference between the amount requested and the sale price over the last 90 and 30 days.
Look at some of these numbers – 120%, 130% and 138% overpriced bids for homes of all price points. In all neighborhoods except the Tanglewood neighborhood, which is coveted for its location and the public schools available to residents, the percentage has dropped.
Realtor Greg Potts of Compass in Fort Worth recently informed CandysDirt.com that he has increased the number of offers and receipts of offers on his listings.
“There are definitely a lot more options for buyers,” Potts said. “I’ve been involved in more negotiations in the past two weeks than I’ve been in the past two years. It’s with the buying agents on my listings and with my buyers that I show.
Do not be afraid. Make an offer.
Take heart buyers: you may still have to pay the asking price, but days of double-digit percentage off asking price could be slowing down. Trust the data. Trust your real estate agent. If you absolutely want a house and don’t care what it takes, make this crazy offer. If you’re interested but are ok with losing an ad, don’t be afraid to make a list price offer or slightly – did you hear me? SLIGHTLY – above asking price.
Sellers want to sell. Buyers want to buy. Don’t hesitate to make an offer. All a salesperson can say is “no” or come back with a counter. There could be a balancing market in real estate at the moment.