DALLAS — These are hard times to be a homebuyer in North Texas, even for those putting in competitive bids.
Real estate broker Joe Atkins of Joe Atkins Realty said he has seen plenty of cases where it is extraordinarily hard to be selected as the winning bid.
“You’ve probably got a 10% chance. I have made plenty of offers for clients this year and gone $50,000 or $100,000 over list…and lost,” he said.
A home listed for $1 million sells for $1,300,000
Those $50,000 or $100,000 bids over what the seller is asking aren’t on million-dollar homes.
Atkins said that’s what is happening with $500,000, $600,000, $700,000 properties.
As for million dollar homes, Atkins shared the story of one of his agents who recently had a buyer in that price range in Southlake.
“He did not recommend this…they told my agent that they wanted to go $300,000 over (asking price) to try to secure the property. According to him, they got it but it was still tight," said Atkins.
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Appraisals not keeping up
Atkins said that often appraisals are not keeping up with price surges. If the appraisal comes in lower than the agreed upon price, the buyer must come up with the extra money—or lose the deal.
And just the threat of that complication is leading some sellers to go the easier route, and select buyers who are able to pay immediately in all-cash purchases.
Even if you’re already pre-approved for financing, buyer beware: You’ll probably have stiff competition from those cash buyers. Atkins said he has been seeing more of them than usual.
“If there’s 10 offers on a home, just assume three of those are cash,” he said.
The Texas A&M Texas Real Estate Research Center notes that median prices for homes in Dallas-Fort Worth have been setting new records this year and then breaking them, going from $310,500 in February to $321,500 in March.
Some buyers are getting priced out. Atkins said it is hard to do, but he has had to have tough conversations with some of his clients who can’t keep raising their budgets.
“We just tell them honestly you’re just going to have to sit on the sidelines,” said Atkins.
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In March, the Jasons shared more insight about the real estate market on an episode of Y'all-itics. Listen below and subscribe for more great insight on all things Texas: Apple Podcasts | Google Play | Spotify | Stitcher | Amazon Music