Dallas home bidding wars 2021 (Frisco, Prosper: apartments, foreclosures, renters)

[place]

Originally Posted by 36183

Most builders increased price in the last two month but the range of price increase varies a lot. Some by a few thousand, some by 40K to 50K. What is behind these increase? What kind of market analysis (or strategy) they have used to support the increase? Or some builders are just a little more aggressive, and at the end of the day it will be even out.

I dont think a clear strategy.. They have a huge waiting list.. most builders are now accepting holds on new homes .. each potential home to be built can have max 5 holds (Checks from prospective buyer). They keep seeing this list keeps growing in all communities. so they increase the price as they know count of buyers in market.. Purely demand supply mismatch..

[36183]

Originally Posted by place

I dont think a clear strategy.. They have a huge waiting list.. most builders are now accepting holds on new homes .. each potential home to be built can have max 5 holds (Checks from prospective buyer). They keep seeing this list keeps growing in all communities. so they increase the price as they know count of buyers in market.. Purely demand supply mismatch..

I didn't know the wait list thing. My friend is waiting for the builder to send her the contract to sign, and she already paid earnest money as well as signed the purchase agreement. Is there any chance that she lose the home to somebody else. In this instance the builder has not increased the price yet.

[fearthegoat]

My mother's home in West Plano will be hitting the market in about a week. Should be interesting to see how quickly it sells.

[20Hope20]

It feels like every buying agent is telling buyers to bid significantly over the asking price, is it one reason for inflating the price and fueling a bidding war? Also where are these high asking prices coming from, homes aren’t appraising that high or getting taxed that high so whatever randomly suitable number seller or agent asks, people start bidding over it? This is going to increase next years property taxes?

[WorldKlas]

I received an email from my tenants in my Irving yesterday who’s lease expires on May 31. They have just been approved for a mortgage and wanted to know if they will be able to be released from their lease early because they were going to begin a home search in a good school district because their child is a year away from school. I found it somewhat amusing after reading this thread that they’re thinking they will be ready to move in 3 months. We’ll see!

[Grapevine Guru]

OP mentioned an interesting point as part of offer strategy: using a maximum % above appraised value (15% to 20%) as a limit / factor. I have not seen any recent indications as to whether this is a viable approach. Does anyone have any data to suggest that there is a reliable % that could be used to estimate fair offer prices based on appraised value in Tarrant or Dallas counties? If so, what range would be appropriate as a guide (for example, 10% to 15% above appraised value?). I have not heard local real estate agents offering any such rule of thumb for buyers (or sellers), possibly because values are too specific and each home's value would vary as a % above county appraisal. But, curious as to what others think?

[NP78]

Originally Posted by Grapevine Guru

OP mentioned an interesting point as part of offer strategy: using a maximum % above appraised value (15% to 20%) as a limit / factor. I have not seen any recent indications as to whether this is a viable approach. Does anyone have any data to suggest that there is a reliable % that could be used to estimate fair offer prices based on appraised value in Tarrant or Dallas counties? If so, what range would be appropriate as a guide (for example, 10% to 15% above appraised value?). I have not heard local real estate agents offering any such rule of thumb for buyers (or sellers), possibly because values are too specific and each home's value would vary as a % above county appraisal. But, curious as to what others think?

Not viable IMO. The biggest issue is that the appraisal from the appraisal district is not necessarily accurate. There are a lot of factors that may be missed by the appraisal district that might impact real market value. It’s not like the district is actually going through the house and coming up with an appraisal. It is based on the best data they have (comparable value of similar sized properties nearby, permitted improvements, etc.).

[sathyakamaraj]

Originally Posted by ChristieP

And buyers trying to escape California with a load of cash after selling their house there.

Exactly !!!

[GoBearcats29]

Another update - Bid $20k over asking included paying the title, partial appraisal contingency that would have cost us another $7.5k out of pocket. Lost.

The Sellers agent came back to our original offer and asked about waiving the appraisal. I'm thinking that's the only way you're going to win a bid right now.

[Clever nickname here]

Originally Posted by 36183

Most builders increased price in the last two month but the range of price increase varies a lot. Some by a few thousand, some by 40K to 50K. What is behind these increase? What kind of market analysis (or strategy) they have used to support the increase? Or some builders are just a little more aggressive, and at the end of the day it will be even out.

Trump's trade war and COVID labor issues have increased lumber costs to insane levels.