As a Realtor who is familiar with this environment selling in more competitive environments such as Los Angeles, it is important that Buyers educate themselves prior to actively entering the market by meeting with their Realtors to learn about the dynamic market conditions that will affect the homebuying process. Buyers must get pre-approved for financing so that they are taken seriously by sellers, especially since multiple offers will be more common as inventory decreases. It may also not be enough to be pre-approved for financing as in some situations Buyers who are purchasing homes with cash will win the deal. Sellers on the other hand should require that Buyers present with their offers proof of financing and funds to ensure that the offer they choose to accept has a higher chance of closing. Buyers should also make sure that their Realtor can build a good rapport with listing agents as this also plays a factor in getting their offer accepted. This is the new reality of our Houston real estate market.
These conditions were evident in several properties my Buyer clients were interested in. One property sat over one year on the market. You would think that such a property would have room negotiate and have no other interested parties. However, due to decreasing inventory levels, this property had two other offers. Fortunately, with my negotiation strategy, counseling along with the strong financial position my client was in, we got their offer accepted. In another client's case, they weren't as lucky, by the time they were ready to see properties they were interested in, over half had accepted offers. These properties had only been sitting on the market for 7-10 days. Moral of the story is that Buyers should be willing to act fast to submit offers. This may be scary especially for the first time homebuyer, however their fear should be eased as Buyers in Texas typically negotiate an option period of 7-12 days where they can have the unrestricted right to cancel the contract and receive a refund of their deposit.
As a Realtor who provides his opinion based not only on experience, but most importantly facts and statistics it is my duty to provide my clients with the latest information pertaining to the local real estate market. Below are some of the highlights from the Houston Association of Realtors MLS Report for January 2013. To read the entire article and watch a video from our Chairman, Danny Frank please CLICK HERE.