Home News It’s not quite a buyer’s market, but home sellers are making some big compromises

It’s not quite a buyer’s market, but home sellers are making some big compromises

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Tiffany Todd remembers exactly when the housing market changed.

Around May 15, Todd, a real estate agent for TD Realty in Mansfield, put his house up for sale in Aubrey, only to find that there were far fewer listings than another house he sold a few weeks earlier. I was. The home didn’t go on sale for just below list price until early July, which was largely unknown at the beginning of the year.

“I hadn’t seen it in years, so I knew we were really changing,” Todd said, adding that it’s taking weeks, not days, for homes to get offers. He added that he had noticed other signs, such as tangles and that sellers were spending money on buyers.

Buyer demand is slowing due to affordability concerns arising from rapid price increase When higher mortgage interest ratesMany North Texas sellers are now selling homes below list price, offering markdowns, offering incentives to buyers and making contractual compromises that would have been rare before the market cooled. .

Noting that buyers haven’t been incentivized as often since 2019, Todd said, “I’ve seen agents get creative with sellers to keep their homes off the market. We are doing it,” he said.

The number of homes on the market in Dallas/Fort Worth is Soaring from about 4,200 in February According to a Realtor.com survey, it surpassed 16,500 in September. The median length of time a home has been on the market has gone from his 36 days in August 2021 to his 43 days as of September.

Still, the market is far from a balanced market between buyers and sellers. Dallas-Fort Worth had just over two months of supply in August.

Mark Wolfe, broker and owner of Re/Max DFW Associates, said: “Balance is still good”

One of the most common questions Todd receives from clients is how long this market will last. She said she can’t give them a good answer, just as she couldn’t predict the kind of market she faced a year ago.

“We had no idea if it slowed down or what,” Todd said. “We have to adapt to the current market.”

We spoke with several recent and prospective home sellers about what it’s like to list a home in a market that is still very hot.

unexpected shift

Jessica Titco’s three-bedroom home on Carlson Drive has been on the market for $549,000 for over 70 days.(Elias Valverde II/Staff Photographer)

Genna Skolnik, a Dallas real estate agent for Compass, first met Jessica Titko in May about listing her home on Carlson Drive, just southeast of Dallas Love Field Airport. Titko was ready for her change, and she knew she wanted to be near her mother and her family’s wallpaper store in Far North Dallas.

At the time, Titko’s neighborhood homes were often flown off the market in about five days, but Titko didn’t list the house until July. The house was still for sale at his end of September, so he had to cut the price twice, from $575,000 to $549,000. Skolnik said if he had listed the house in May or June, it would have sold quickly and would have sold for more than the asking price.

“We never expected the market to change so quickly,” says Skolnik.

Entrepreneur Tikko, 32, who owns her own recruitment agency, bought this home seven years ago as a first-time homebuyer. She and her mother underwent a major renovation and have continued to upgrade her ever since.

“It ended up being a labor of love, and we put a lot of time and attention into it,” said Ticco.

In its first month on the market, there were quite a few exhibits, but the sales environment was changing rapidly. Titco said people looked at the house, waited a few days to make a decision, then turned away after realizing interest rates were going up.

“We had decent traffic at first, but then school started and rates went up,” Skolnik said. It does. I think everyone was a little surprised.”

The way Skolnik lists homes has changed in this short time. When she and Titco first listed the home, they based the price on the average sales price over the past three months. In September, we set our prices based on the last six months, given the market slowdown and lower home prices.

“We thought it would go a little faster than it actually did, but given the current market and interest rates and what we’re seeing, it’s still there, but sold to the right people. I hope so.” Chitoko said.

So far, so good

Sean Alexander and wife Janet Alexander stand outside their new home in Dallas.
Sean Alexander and wife Janet Alexander stand outside their new home in Dallas.(Elias Valverde II/Staff Photographer)

After seeing a similar Opendoor-owned home across the street on the market for 90 days, Janet Alexander was apprehensive about putting her and her husband’s townhome on the market.

“The days when something was listed so heavily were weighted in my head,” she said. ”

General Accounting Manager Alexander, 37, and her husband Sean got married earlier this year and are expecting their first child in December. Her two-bedroom townhome in Richardson wasn’t big enough to start a family, so on Sept. 15, she listed the house and moved it to North Dallas, near the University of Texas at Dallas. I moved.

Despite the market cooldown, they received several offers within days and closed the deal on October 6 at a list price of $365,000.

“I thought there would have been more viewings scheduled, and I was pleasantly surprised that the offer came in so quickly,” Janet said. , probably expected a longer lead time to get an offer.”

However, despite having a contract, I am worried that the seller will withdraw the contract. 19.7% of home purchases in the Dallas area were out of contract Buyers faced higher mortgage rates, Redfin said.

“It’s not considered complete until it’s all signed, sealed, and done,” she said.

Cash offers dominated the market in early 2018, but the couple chose a buyer they thought was unlikely to abandon the deal, although they had raised the money.

“what [the cash buyer was] It was not a sign of seriousness to be willing to put during the option period,” she said. “It’s cash and if it’s past the option period it could have been probably the fastest closing timeline, but they’re very far away from the deal so they don’t have skins in the game and they don’t lose anything. felt. “

They may have made more money from home in March or April, but G6 Hospitality front-end developer Sean, 41, said he was happy with the price they got. Told.

“It’s a huge leap from when we bought the house five years ago,” he said.

“Tempered” Expectations

Matt Puckett posed for photos with his dog Bella in Anna's backyard before selling his McKinney home...
Matt Puckett, pictured with his dog Bella in Anna’s backyard, sold his McKinney home in September after dropping the price by $35,000.(Juan Figueroa/Staff Photographer)

Matt Puckett decided to sell the McKinney house after seeing interest rates beginning to affect demand. I saw this in my job as a car salesman as well.

But while buyer activity was slowing, Puckett and his agents expected the house to sell faster than it actually did. I sold it for $515,000 after going on the market a few days later and lowering the price. The deal he completed on September 9th.

“We were watching the market change, but we still expected this house to move very quickly.

Puckett, 34, lives with her five-year-old daughter and purchased a home in Princeton. Princeton’s market is slowing more than some suburbs closer to the city, André said. frontier market In response to high sales demand during the pandemic, we are currently facing Low sales volume.

“They’re building homes as fast as they can, but what happens when the market slows down? They’re stuck with a lot of homes,” Puckett said.

That gave Puckett more flexibility in the deal, contingent on the sale of McKinney’s home. The Kochers said this would rarely happen if buyers were on full steam.

“If we get [a contingent offer]it would be on the bottom list of the 20-plus offers we have,” said Tiffany. Would you take such a risk?”

Puckett says that even though the house didn’t win the top dollar, he still made enough money on the house to continue with his plans.

“I came in with the number of sets I had to hit and I definitely beat them,” he said. “Obviously I would have liked more, but we were still far more than what I needed.”

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