Not true. Real Estate professionals and lenders are doing a much better job vetting prospective buyers BEFORE they can even make an offer.

Speaking of nutso...In the barbershop a couple days ago, the guy ahead of me was a land surveyor. He said that somebody had paid $9500 an acre (about 60 acres) on a gravel road 5 miles out from Kosse, Texas. No house on it, or any improvements, just mesquite and cedar. Seems to me that $3000 would be way too much. None of us could think up a reason that someone would pay a price like that. Gold mine maybe, or proven oil reserves.

Kosse is a wide spot in Highway 7 where it crosses Highway 14, with a small truck stop, a cafe, and a Mexican restaurant. One red light.

Yes.

Very low inventory and extremely high demand. Throw in near record low interest rates, and a wave of out-of-state buyers with cash in their pockets, and that’s where we are.

Banks will only loan so much. With appraisals being based on past sales, the risk for a lender gets pretty high pretty quick. Appraisal waivers are basically a given now, and the rest needs to come out of pocket. Unfortunately, that puts a lot of “would-be” buyers on the sidelines. Sometimes you can get creative with owner financing above the appraised value, but you have to ask yourself... why would a realtor advise his seller/client to go that direction when they have a stack of offers from people with cash in hand? It would have to be a dang good offer. Same thing applies to buyers who are contingent on selling their existing home.

It’s an interesting market to say the least.

Yep, market is absolutely bonkers. I made an offer on a fixer-upper rental property last week that needed about $30-40k of work done....offered $13k over asking price, all cash, close in 11 days.....got outbid.

Have been lucky and found a few pre-market deals, but if you don't have all cash and close quickly it's hard to get anything, especially for an investment property. I've made offers on probably 15-20 properties in the last 6 months and got outbid on most of them, and most of my offers were at or over asking price with fast closes.

Land prices have really shot up as well in the last year.

There's a lot of money out there. I read an article that said since Covid hit people in the U.S. have saved an additional 2 Trillion dollars that's just sitting on the sidelines in cash.

Yep, a real estate agent isn't going to waste his/her time with unqualified buyers.

Definitely a sellers market.

We had to have proof of funds or pre approved to even make an offer when we bought our place. Pretty sure that is typical.

Neighbor just sold his house 70k over asking price. Frisco school. 3400 sqft 548k. Makes you want to sale

Barrh

Just sold our place in Brock for $200K more than we paid for it 4 years ago...absolutely no inventory in Parker County right now. Never even listed it...responded to a Facebook post and had an offer the next day after they visited. Builders are 12 - 14 months out IF you can find a lot.

I know at least 2 are cash. No tire kickers allowed. Highest and best by noon tomorrow and seller will decide.

You say that but people are blinded by money. Had a client offer all cash full asking price and close in 15 days. He was beat by a $100k over asking price with contingencies.

That was then this is now......demand is 2 years behind supply in Texas......we listed ours in Murphy and had to shut it down after 3 days and tell all offers to come back with their best offer......we got 50k over list and closed within 30 days of list date....lots of qualified buyers who already have their letter of credit.....

Same here. Mine is locked.

Maybe the Meskin joint is really, really good.

After just selling our house I would advise you to advise your clients to come to the table at least 25k over asking it they really want the house whether cash or not based on what our neighborhood is selling for right now....

Fixing to take full advantage of this.

Bought the place in Melissa in 2002.

See ya!

Dang HB, I have looked at houses up your way, they are still better prices than toward Boerne, talk about nutso.
I will be in your part of Texas tomorrow playing poker at some sort of fund raiser that the Rotary Club is doing.

Yep, there are those folks out there. Its a gamble.

Fixin to get paid

Yall really got me rethinking how much to expect to get on my Moms house in Georgetown. Its 50 years old and has never had anything updated. Needs foundation work but everything basically is "ok". Im sure anyone that bought it would completely gut it and redo everything. Its on tax rolls at about 310000. Not listed yet but a couple realtor friends have unofficially said its worth about 300k. A few comps show about 400 to 450 on similar houses but they have been completely redone. I knew the housing market was bonkers but I still thought 300k was a ton of money for that old house. Couple siblings involved and Im not going to get greedy but I hate to leave a ton of money on the table.

The downside if you're buying near where you're selling...you're paying crazy money for your new house.

If you've got the time to DIY it, it might be worth remodeling. Yes materials are at an all time high, but so is someone to handle the project.

We initially were going to offer $140k under asking as it had been on the market 161 days at the time we were submitting the offer and had substantial water damage from the freeze. No repairs requested.

I’m going to list a house in Ft Worth for $1, just to see how hot the market really is. If it doesn’t get what we think it it should, then we raise the price.