navigating DFW's crazy market

What, WHEN, where, why, and how in dfw’s CRAZY Market 

by Pat O’Reilly


This is a CRAZY Sellers Market . A Sellers Market happens when there is a shortage of homes for sale. Last year we were already short. This year=Yikes. It’s all about supply and demand. Demand is off the charts, supply is low. Depending on the price range, homes can sell in a maGer of days. The HOME is officially SOLD when the contract is signed by all parLes. It closes when the paperwork is completed by the lender and all parLes sign. This is usually 30 days; cash transacLons can close in a week. That’s the what.
The WHEN
Since January of 2016 the supply of homes has been low. It was a wild seller’s market all last year. Usually it’s busy summer months, full of transacLons––people are trying to get established and set before school starts in mid-August. Last year, it started in January and didn’t let up. The market stayed moving fast and it’s been very compeLLve. Realtors working with buyers are working harder than ever because homes have been geXng mulLple offers. While realtors are wriLng contracts, they get kicked out by a beGer offer. Then, we’re showing more homes and wriLng more contracts in this market too. We at the OHT have a client that we have shown over 100 homes to and we’ve wriGen 11 contracts. These are 11 good contracts. But, we’ve lost each Lme.
*This seller’s market is projected to last another 2 years.
The WHERE
Five of the top ten fastest growing ciLes in the naLon are in Texas. Conroe comes in a #1, with Frisco and McKinney at 2nd and 3rd. CRAZY!!
The bigger ciLes like Dallas, Fort Worth, Houston, San Antonio and AusLn were all among the naLons 10 ciLes that added the most people between 2015 and 2016. Texas is projected to double by 2050!!
With all this movement, huge developments are presently under construcLon or planned out throughout the Metroplex. McKinney is starLng construcLon on a subdivision with over 6,000 individual single family homes. That’s 6,000 families moving into this one development. And developments are starLng in Farmers Branch, Irving, Aledo, Frisco, Fort Worth ... OK! EVERYWHERE!!
The WHY
Businesses are coming to Texas and to North Texas. Texas is business friendly (we want you and we will tax you less), no state income tax, good weather (if you don’t count June July and August). Toyota, State Farm, Boeing, Kubota Tractor, and McKesson are just a few that have moved to North Texas or will soon be here. More than 60,000 people are coming to the DFW area to fill those posiLons. Toyota is bringing over 4,000. Plus, we have the companies that do business with these companies coming! This is why the market is packed.


And HOW
If you are selling, then your job is much easier in this market. What you should be looking for is how much you can stretch your property to get the most money. If you are a buyer, you’re in for a more bumpy ride. You need to be prepared to move fast, but it’s not impossible to buy in this market! We are here to help and we’ll keep at it for you. We are making it happen.
So How Do I Compete as a Buyer in this Market??

1. 1)  Put in your best offer first. This is not the market to test the sellers, especially in a mulLple offer situaLon. We will do a Market Analysis to show what the market says the home is worth and we’ll compete with a serious offer.
   
2. 2)  Be prepared to pay list price, or over. Values are going up every month. Sellers know this and they keep adjusLng up as long as the market allows it. CompeLLon due to low homes for sale is the driving force, and we all have to be aware that prices are rising.
   
3. 3)  Offer to pay the Title Policy. This is an element of the process the seller normally pays for, but offering this and doing other liGle things can give you the edge.
   
4. 4)  Be fully approved by your lender. Most buyers are pre-approved. To be fully approved you must meet with your lender and get all the informaLon they need now early in the process. Being fully approved gives you an edge, ready to move forward.
   
5. 5)  Prepare to move fast and lock down the contract. There are ways for us to protect you and ways out of the contract and WE WILL PROTECT You. We’ll be fast and efficient and we’ll move to get the contract signed asap. Once it is signed we will have Lme for inspecLons and whatever else you want to do. But be prepared to lock it up!
   
6. 6)  Use the OHT. Together we have 14 years experience and we’re ready to pour our Lme and energy into the details of the process. We’ll take care of you, our community, and we will get it done!