The recent shift in our market means different things for different people. Here’s what it might mean for you.
Looking for a home? Click Here.
Selling your home? Click Here.
I recently produced a video about the shift that I think is starting in our local market. If you saw it, I hope you didn’t panic. I promise that nothing crazy is going on with real estate in the hill country, but I am beginning to see a shift from a balanced market to one where buyers have more power.
Home values are still strong in the hill country and appreciation is there. It’s just beginning to slow. Unaware sellers have priced their homes higher than sold comps support. Why would they do this? When consumers do their homework online, they only see active listings. They often don’t see all the price reductions that are required for an overpriced house to go under contract. In Texas, they don’t see the sold data, which is a huge piece of the puzzle. Texas is a non-disclosure state, and only agents belonging to the local MLS have access to the sold data.
Why do we talk about whether the buyer or seller has more clout in any given situation? We do it so our clients know how to react, how to stay ahead of the curve, and how to strategize with their agent to get the best deal possible.
Markets ebb and flow all the time.
How should you act in a shifting market? Smart buyers come armed with facts. When presenting your offer, it might not be a bad idea to include a spreadsheet with four or five houses that support your offer price. If you’re concerned the home you’re making an offer on is overpriced, ask the seller’s agent which comparable homes they used to price it.
Smart sellers make sure their home stands out from the competition by making sure it’s in the very best conditions that it can be. Your marketing needs to be aggressive and creative, too. Great houses always sell for more money in any market. Your house does not have to be the cheapest in its category, but it is important that clients see it as a great value.
The bottom line is that markets are fluid. They ebb and flow all the time. Homes are valuable in the Highland Lakes and the appreciation is there over time. Educate yourself about your particular market and find an agent who understands those nuances and who can help you strategize.
If you are wondering about the indications that I see that makes me think the market is shifting, click here to check out the first part of my “Shift” series.
If you have any other questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.