Dallas home bidding wars 2021 (Austin, Prosper: buyer, construction, closing)

[EDS_]

Originally Posted by Sunbather

Some people will wait and wait for prices to go down until they are completely priced out of the neighborhoods they would prefer to live in, while missing out on years of equity in the process. Again, 'timing the housing market' for buying a primary residence is rarely reliable or worth it in a larger city like this.

You'll likely recall the epic thread from a couple of years ago - the OP predicted that a strong housing price rollback in DFW was a quarter or two away and that people should wait..........someone needs to dredge that thread for a look at how awful "waiting for dips" logic can be in the home buying areas.

[Rakin]

Originally Posted by EDS_

You'll likely recall the epic thread from a couple of years ago - the OP predicted that a strong housing price rollback in DFW was a quarter or two away and that people should wait..........someone needs to dredge that thread for a look at how awful "waiting for dips" logic can be in the home buying areas.

We saw this similar situation around 2014-15. Shortage of homes, building costs going up, people moving here like crazy, multiple offers.

[Sunbather]

Originally Posted by EDS_

You'll likely recall the epic thread from a couple of years ago - the OP predicted that a strong housing price rollback in DFW was a quarter or two away and that people should wait..........someone needs to dredge that thread for a look at how awful "waiting for dips" logic can be in the home buying areas.

Oh yes, I definitely remember. Yet here we are 2 years later and the slope is getting steeper.

[EDS_]

Originally Posted by Sunbather

Oh yes, I definitely remember. Yet here we are 2 years later and the slope is getting steeper.

Housing prices continuing to run up is one thing.

The math of waiting for a bust while renting tends to be failed logic as well. At this point there could be a 15% price bust and the gloom and doomers in the other thread would still come out short.


And it isn't just a DFW/Texas Triangle thing, usually to a lesser degree to be sure, similar rent vs. purchase traps have occurred across many metros. I have friends trying to buy in Edmond OK right now the market there sounds like pure chaos. Their realtor put a FS sign out front and had 3 offers over ask by the end of the first day. They had two purchase agreements fall through as the FSBO owners in both cases reneged taking better offers both times - bad ethics but it happened. So now they are going to build and live in one of the builder's rentals for 5-6 mos. while a partially built home is completed.

[Sunbather]

Originally Posted by EDS_

Housing prices continuing to run up is one thing.

The math of waiting for a bust while renting tends to be failed logic as well. At this point there could be a 15% price bust and the gloom and doomers in the other thread would still come out short.


And it isn't just a DFW/Texas Triangle thing, usually to a lesser degree to be sure, similar rent vs. purchase traps have occurred across many metros. I have friends trying to buy in Edmond OK right now the market there sounds like pure chaos. Their realtor put a FS sign out front and had 3 offers over ask by the end of the first day. They had two purchase agreements fall through as the FSBO owners in both cases reneged taking better offers both times - bad ethics but it happened. So now they are going to build and live in one of the builder's rentals for 5-6 mos. while a partially built home is completed.

Agreed.

[EDS_]

Originally Posted by Rakin

We saw this similar situation around 2014-15. Shortage of homes, building costs going up, people moving here like crazy, multiple offers.

Right.

[WorldKlas]

Happening in Las Vegas, too.

[place]

Finally we were able to get into contract.. We put offers on 2 homes .. 1 we lost and in 1 we got thru..

Listing 1 :- Location 1 ; LP=x; Offered x+12K; Got the offer
Listing 2:- Location 2; LP=y; Offered = Y+5K; Sold price = Y+50K

Some of the strategies we learnt


1. Trying to give the first offer
2. Atleast start with little above whats the list price
3. Play around appraisal contingency; We waived partial initially and when we aggressive we started waiving fully and reducde down as most of the homes are getting listed with no hope of getting appraised
4. Pay Title fee
5. Higher options fee
6. Higher EMD
7. Giving no contingency offer

We tried all of these in many offers
the one which yielded success for us is giving first offer with full waiver on appraisal.

We kept a rule of thumb; Our Max offer price should not exceed 15%-20% more than county appraised value depending on additions in home
for ex. if a home is appraised for 230k and listed at 270K we will not go beyond 280K

Good luck and continue to pour your responses

[nsumner]

Originally Posted by place

Finally we were able to get into contract.. We put offers on 2 homes .. 1 we lost and in 1 we got thru..

Listing 1 :- Location 1 ; LP=x; Offered x+12K; Got the offer
Listing 2:- Location 2; LP=y; Offered = Y+5K; Sold price = Y+50K

Some of the strategies we learnt


1. Trying to give the first offer
2. Atleast start with little above whats the list price
3. Play around appraisal contingency; We waived partial initially and when we aggressive we started waiving fully and reducde down as most of the homes are getting listed with no hope of getting appraised
4. Pay Title fee
5. Higher options fee
6. Higher EMD
7. Giving no contingency offer

We tried all of these in many offers
the one which yielded success for us is giving first offer with full waiver on appraisal.

We kept a rule of thumb; Our Max offer price should not exceed 15%-20% more than county appraised value depending on additions in home
for ex. if a home is appraised for 230k and listed at 270K we will not go beyond 280K

Good luck and continue to pour your responses

Congrats.

Not only the offer price is taken into consideration but the terms of the contract is what could be important to the sellers. This is where you have to have a Realtor that knows what they're doing and communicate with the seller's agent beforehand. Find out what is their sweet spot and make an aggressive offer.

Naima

[WorldKlas]

Congrats. Please let us know when you close.