29 Jun The current market for home selling and buying. No BS, just straight talk…
No mater who you ask, Realtors and online publications are going to swing you drastically one way or the other. Stats always support both claims, regardless of the economy, color of the sky or what time of the year it is. Our industry and housing market suffers and boasts cyclical trends. During these trends there are simple forecasts that can be made without the exaggerating perspective.
Here’s the simple truth about home selling throughout the Houston area…
It’s June 29th 2016 and the fact is, if you own a home under 175k that’s in decent-to-good shape it should sell in under three weeks. The cheaper it is the faster is should sell. Period. The more you improve and bling your product the faster it will sell. In real estate if you over-bling, you’ll lose money, especially in the suburbs where you’ll find yourself hitting the ceiling of what your home could and probably appraise for.
There’s no mystery as to why this under 175k market moves so fast. There are simply more average bears than there are people living in $500,000 homes.
It’s becoming harder and harder to find a home under 150k. They’re there, but you may not like what you find, and if your interested in buying one, you better bring cash! Most of these “deals” are being had by people who would rather use their IRA or savings versus borrowing money…even if money is cheap right now.
Homes priced between 300k-500k are feeling the full punch in the face. The average time to sell could take 3-4 months. Be prepared. Hire the right agent, and be patient. Now is not the time to “pad the price for negotiations.” Never list your home to “test the market” as your MLS data is there to stay and that “newness” on the MLS is paramount when you’re ready to REALLY sell. Nobody desires a home more than when it’s fresh on the MLS and smells like a “hot new listing.” Everyone will be able to see that you were listed before. The average time for closing is taking all of about 45 days. Be sure to hire an agent who is well versed on handling contingencies, relocation buyer scenarios and pricing strategies. There are countless scenarios when selling including death, divorce and loss of a job. Your agent should be able to articulate a battle plan for all of these challenges.
Buyers should recognize that the best scenario and house to negotiate on depends on the neighborhood and overall price-point. You cannot blanket Harris County and call it a buyers market. I don’t care what you read on CNN, Zillow or whatever dot com. What matters is local and precise research. Every community can and likely is…different.
Cash matters. Strong loans with 20% down matter. A buyers claim that “we’re in a buyers market and I want to offer X” doesn’t. You can still negotiate and get the home you want with an FHA or VA product, but you better be sensible in your approach if you’re serious about buying a home.