State of the Market 2021

The Austin market is proving to be quite the challenge for buyers as of late.  There is very low inventory and the sellers have all of the advantage.  Prices are appreciating at a rate of ~20% range from this time last year.  All signs point to the inventory to pick up, but appreciation will not slow down.  Why is this important?  Because it seems very difficult to navigate the process now as a buyer, but its a great time to weather the storm and get in now for the 2021 prices.  Currently, the average price point for Austin metro hovers $360,000.  As we continue this 20% appreciation, Austin metro will get to $432,000.  We are seeing homes go for 10-36%+ over list price.  You will need to understand that the list price is merely a suggestion, and you will need to offer over list price (cash offers, or financing offers while waiving appraisals, financing contingencies, and buyers paying for survey, title policy, HOA transfer fees. *more below*).  Pricing will not decrease during the Spring, only not rapidly appreciate.  

We all knew their would have been some challenges in the *post-Covid* real estate market.  Our team has our finger on the pulse of the market and we monitor data weekly as things are changing rapidly.  We are here for your support so please do not hesitate to reach out.   

 

So, how can we submit the best offers in our current state of the market?

 

1.  Price.  Price is always going to be the driving factor.  You can offer everything under the moon but if you are not submitting strong, over list price offers, everything will wash out.  We are seeing 20-36%+ (depending on area).  

2.  High option fees, low option period.  This will still be something we will advise our clients to use since it is your inspection period.  We are seeing the best offers with option fees of 2-5% of purchase price for less than 3 days. 

3.  High earnest money deposit.  Ideally, you will want to match what your option fee is.  

4.  Minimum 20% downpayment.  Bare minimum. 

5.  Buyers who are not paying cash will need to look at turning their financing offer into a *cash offer*.  How?  Waiving appraisal, financing contingencies.  What does that mean?  Buyers will need to make sure they have the cash to make up appraisal differences since going over list price. 

6.  Buyers should also consider paying for owners title policy

 

These are just highlights, please get with us since every house and offer will be different.  We will definitely help you navigate offers.  Please bear in mind that our #1 goal is to help you successfully buy the right house for you.  We will often discuss how strong to make your offer, and this is to help you reach that goal!

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