Is the Austin market really THAT crazy? Let’s slow down.
The prevailing narrative these days is that the Austin market is hotter than it’s ever been. I’m sure that we’ve all heard the anecdotes.
“Properties selling for 20% over asking price.”
“100 offers in one weekend.”
“You need to be all cash to have a chance.”
Is this true? Or is it just a story we all keep repeating to each other? And do the stories we tell influence the realities of the market?
Here’s my take. Yes, the market is competitive. Yes, prices in Austin are up significantly from last year. Yes, we are short on inventory which is driving up the prices and how competitive buyers need to be if they want a chance to buy the most desirable properties.
But no, the market is not THAT crazy.
I ran the numbers today out of curiosity. While homes are selling for higher prices, sure, the numbers did not bear out that “most” properties are selling “way” over asking. They’re selling, on average, for 101% of asking price. And that, my friends, is just another normal day in Austin.
The more we tell this story that the market is “crazy” the more we convince ourselves that buyers can’t be successful. Since the real estate market is composed of human beings moving from one house to another, this story actually exacerbates our housing shortage.
Here’s why. For every homeowner that believes that they can’t sell, because they’ll never find another home, that’s one home that didn’t come up for sale. And I know it’s happening because I’ve talked to several of you and heard this concern exactly.
I’ll say this definitively. It’s not true that buyers can’t be successful in buying a home. Plenty of buyers every day are getting to closing in Austin. And it’s not true that if you sell your home you’ll never find another one.
So what is one to do? How do you avoid driving yourself crazy in what people say is a “crazy” market?
I think a mindset reframe is in order. If “everyone” is doing something and it’s not working, it’s usually a good idea to do the opposite.
In a market that’s moving so fast, slow down.
One thing we’re helping our clients do right now is slow way down. The speed of the market might tempt you to move fast, but slowing down can help you be more successful.
Let’s talk about what this looks like.
How to Slow Down in a Fast Market: FOR SELLERS
For sellers, slow down and plan your money moves strategically. How much equity do you actually have in your home? If you could get that out into cash, what would you do with it? The answer doesn’t have to be the automatic “buy my next dream home.”
What if the right answer for you is, rent a place instead and invest in stocks.
Or buy a home that isn’t at all what you dreamed of, but is a great deal. You could live in that place for just a year or two until the market, perhaps, shifts and inventory loosens up, and then buy your next dream home.
Or what if the answer is, take that money and invest it into a totally different market in a different state?
Or perhaps now is a great time to buy some under-priced commercial property. I bet there are some retail and office properties right now that could be purchased for much less than they were worth just 18 months ago.
How can you as a seller make different choices than “everyone” else.
“No one” is selling right now. Be different, and profit.
How to Slow Down in a Fast Market: FOR BUYERS
Everyone knows if you’re a buyer these days, looking at homes is now your second job. When a new property hits the market, you have to rush over and see it in the first 24 hours. Everything sells the first weekend with multiple offers. So you better not take any breaks from looking or you’ll miss out on your dream home.
What if this isn’t true? What if slowing down is actually going to make you more successful?
If you’ve tried the approach above, you know how frustrating it is. Here’s my advice.
Slow down and really get clear on what you want in a home.
Now I know, what you want might be that home that everyone else in Austin seems to want, too.
But maybe there is another home for you, that isn’t packaged quite so enticingly, that other buyers are ignoring right now. Maybe it’s been on the market for 30 days and everyone has decided there’s something “wrong” with it because it’s been “sitting for so long.”
Think I’m crazy? There are exactly 264 homes right now in Austin that have been on the market for more than 30 days. Do you think those sellers are getting maybe a bit more open to negotiating with you? I bet they are.
Maybe your next home is not even listed on Zillow or Realtor.com. Maybe it’s owned by one of the sellers, mentioned above, who wants to sell but thinks they “can’t.” But maybe they’d consider working with you directly if you offered them a flexible closing date so they could find their next home.
“Every” buyer is chasing the well priced, well staged, professionally photographed home that hit the MLS in the last 24 hours. Be different, and get a different result.
The Austin Offer Guide
If you’re thinking “Okay, Isabel, you’ve got me thinking. Now what am I supposed to do about it?”
You can always just reply to this email. I’m happy to talk directly with you about your situation and if we have had the pleasure of talking before, you know I’m not interested in selling you on doing anything you don’t want to do. So don’t be afraid to start the conversation.
But if you’d like something more tangible, enter our Austin Offer Guide. My team and I have been compiling our best market intel about what you can really expect in this market right now, whether you’re a buyer or a seller.
For sellers, what kind of offers could you expect to see if you listed your home for sale this Spring? Not just a net sheet, but the real deal about what a “strong” offer from a buyer looks like right now in this market place.
For buyers, what are sellers seeing when they sit down to review multiple offers with their agents. What do you need to do to set yourself apart? Not generalities, but the real story.
If you’re interested, reply to this email. In each case, we’ll take our offer guide template and customize it to your situation so that chances soar that if you choose to enter this marketplace, you’ll be as successful as possible.
Hypoint – Residences by Urban ATX
Our model unit is now available to visit by appointment! Come by the site and see for yourself why HYPOINT should be the next stunning residential community you live in.
6020 Springdale Rd
Austin, Texas 78723
You can check out more information here https://www.urban-atx.com/hypoint-cover. Inquire through the website, reply to this email, or email Cindy at firstname.lastname@example.org for more information or to book your tour of the model unit.
More details include:
- Ranging from 1350 sqft – 2000 sqft
- Small fenced-in yard
- 1 car garage/carport
- Price: Starting in the $700s
To stay updated, reply to this email and we’ll make sure to keep you in the loop as more details develop. Stay tuned as we break ground in the upcoming months.
During the last two weeks, our team had the pleasure of putting two listings on the market. Morgan worked with Jeffery, who went under contract in less than 3 days with a two-story on Florencia Lane.
Isabel worked with Jeff and Katee on their home in Round Rock. Jeff and Katee have been previous clients and we had the pleasure of helping them sell. Congratulations to both our clients!