Today’s Dallas, Texas Home Buyers Are Plentiful
Today’s Dallas, Texas Home Buyers are Plentiful, and for those new home buyers in the Dallas, Texas housing market, you’re undoubtedly at your wit’s end trying to find your dream home. When you do find a home you love, you are competing with all cash offers and bidding wars driving the sale prices above what it is listed for, and many times, even above what t he home is actually worth. Well, again you already know that by now.
While you can’t do anything to infuse more homes into Dallas’s lean market, you can certainly educate yourself by understanding the trends and patterns in the neighborhoods you are trying to buy in. While it’s clearly not quantum mechanics, there is definitely a noteworthy advantage to those buyers who understand the trends of a real estate market. Understanding the nature of the market, and preparing yourself for the journey is probably the most critical step for managing your expectations.
You ask, what is driving the Dallas, Texas housing market? Household formation is the key factor driving the resurgence in home prices and rents. In Dallas, the spike in the number of new households is because of a massive population increase due to a powerfully enticing job market. With home prices rising faster than rental rices, would-be home buyers, previously sitting on the sidelines are scampering to become home owners before prices move to fat out of reach.
Keys to Buying in a Strong Seller’s Market
With selected segments of the Dallas, Texas housing market, appear to be placing an increased premium on homes located in neighborhoods served by superior schools. When average days on the market decrease moves steadily down coupled with list prices and price per square foot averages increasing consistently in tandem. As they are doing now, we are in a seller’s market.
In a seller’s market we expect to find median and average prices on the increase and available inventory declining which is exactly what is happening here. So, prices increase, available inventory decreases and home buyers become frustrated and disheartened. Then again, you know that already.
For many years, we have seen several seller’s markets, some even stronger than the one we are seeing today in Dallas. Here are 5 keys to buying a home in Dallas string seller’s market.
Be prepared – Things move fast in a seller’s market. Buyers who are prepared to move with the pace of the market are more successful than those who are’t. How can you get prepared? Ger fully pre-approved before you start your house hunting. Sellers are requiring buyers provide some sort of proof they can actually afford their home before they accept their offer. If you are paying cash, arrange to get a proof of funds letter from your bank.
Today’s Dallas, Texas Home Buyers Are Plentiful
Been pre-approved? Great! The next step is to monitor the market in the neighborhoods you are interested in. This way you will know how well priced a home is when it hits the market and you can craft your offer accordingly. Ask your buyer’s agent to set you up on a search that shows you sold data for each neighborhood you are considering. Finally, have your buyer’s agent explain the purchase contract to you before you find your house. Today’s Dallas, Texas Home Buyers Are Plentiful
This one of the first steps in the process with the buyers we work with. Explaining the contract before you have identified the house not only helps you understand what you have to do and when you have to do it, it is also much easier to digest when you aren’t thinking about what color to paint the living room or stressing how many other offers there are going to be.
Know What You Want and Where You Want It – Identify the type of home you are looking for and where you can find it. Set up email alerts, so you are the first to be notified when a home that meets you criteria is listed for sale. The best homes are selling quickly, sometimes within a couple of hours. Waiting until the weekend to see what you have missed during the week might mean you are only seeing the homes that have already been picked over. Proactively attack your home search and you will have the best results. Today’s Dallas, Texas Home Buyers Are Plentiful
Respond Promptly and Decisively – Once you find a house, put together a carefully crafted offer as soon as you can. Your buyer’s agent can help you determine what things should be in your purchase offer. For example, when we are representing a buyer, we call the seller’s agent and ask what specific things the seller is looking for so we can write the offer in such a way that the seller would be afraid to turn is down. our goal is to help you get the house without having to overpay for it. So, if we can entice the seller with terms, move dates, ectc, we can generally save you some money.
Making Use of Experience
Use an Experienced Buyer’s Agent – An experienced buyer’s agent has been through a strong seller’s market. They know the tricks to making their clients, home owners. We have helped hundreds of buyers over our combined 12 years of experience. Needless to say, we know the ins and outs and buying homes. Today’s Dallas, Texas Home Buyers Are Plentiful
When you are in a competitive market like a strong seller’s market, nothing can replace experience. And, the seller pays your buyer’s agents commission, so it cost you nothing additional to hire your own realtor who is going to fight for your price and fight to get your offer accepted.
Shrug Off Rejection – The Right Home May Pop- Up Tonight – This is probably the biggest key to surviving a strong seller’s market as a buyer. You can do everything you possibly can, but sometimes your offer may not be accepted. And, it’s not always about price. The seller can accept any offer for any reason they want. Today’s Dallas, Texas Home Buyers Are Plentiful
Put your best foot forward and trust fate a little. Every single buyer we have worked with, who has not been the winner in a competitive offer situation, has always said the house they ultimately ended up with was the one they were supposed to buy. Though it may be hard to see it right after your offer is rejected, trust that something else will come up soon.
Dallas House Seller’s Making out Big
How Long Will this Strong Seller’s Market Last? – We are often asked this question and we have often asked this questions as of late. Though we don’t have the crystal ball, we know people are pouring into the Dallas, Texas area. Last figures we heard, 200 people per day were moving to Dallas from outside the area. Today’s Dallas, Texas Home Buyers Are Plentiful
Combine this with the people who already live here and that’s more than a lot of people looking for a home. Though home builders are ramping up production, they are having a difficult time keeping up with demand. So, as long as the number of new households created grows faster than the production of new housing stock and affordable financing is available, we would anticipate this strong seller’s market to continue.
Should a Home Buyer Put Off their Search Until the Market Calms? – The short answer is no. As the seller’s market continues to pick up speed, prices will start to go up. And at some point, interest rates will rise as well. Combine price increases with interest rate hikes and the neighborhood you can afford now may not be a reality in six months.
If you are willing to live in your second tier neighborhoods and would rather not compete with other buyers, then wait. but, if you are looking to live in the best neighborhood you will comfortably be able to afford, grit your teeth, get out there and find something. We can show you how to be successful as a buyer in a strong seller’s market.