It is no secret Austin, Texas is a red hot sellers market. Housing prices throughout the market, and in particular East Austin, have risen dramatically over the past decade. While there are those who, like Chicken Little, may be claiming “the sky is falling” when it comes to housing, the facts simply don't bear that out. They may be using the 2008 housing crisis as a reference, but the situations are distinctly different.
First of all, the increase in buyer demand is largely fueled by the influx of quality, good paying tech jobs. Many people coming into Austin to work are used to far more expensive housing markets. They look at existing prices in Austin as such a bargain they are either willing to pay the asking price, or in many situations, offer more than the listed price for a home.
Another major factor is the near record low interest rates. Many buyers don't appreciate the impact low interest has on what is ultimately paid for a home. The lower interests rates can often make up the difference in increasing prices.
Perhaps, just as importantly is the recognition by some that this is a trend that will continue. They see high demand and low interest rates as a trend that will continue. This makes current prices, in their view, quite the bargain.
So what happens when you find that perfect three bedroom two bath home you can see yourself calling home in Austin? How can you increase your odds of securing that home successfully in this high demand, low inventory real estate market?
The key word is “urgency”.
Buying a Home with a Sense of Urgency
Buying a home with a sense of urgency doesn't mean acting impulsively or without preparation. In fact, it is critical to be ready to move when shopping for a home and this takes pre-thought and planning.
Here are some steps you can take to be able to act with urgency in order to get that house you want in a competitive market.
Get Financing Secured. To act with urgency you need to have confidence in your offer and your financing. More importantly, the seller must have confidence in your ability to be financed. This goes beyond getting ”pre-qualified”, it can take getting “pre-approved”. This means that you have essentially been approved for your loan by a financing company prior to making your offer. This is absolutely vital in acting quickly with confidence.
Work With a Professional. A professional, experienced real estate agent can contribute significantly to the authenticity, validity and value of any Austin home buyer. An offer that is made through a respected real estate agent demonstrates to the seller you are taking this purchase seriously and that potential errors through the closing process will be minimized. You want a clean, quick sale and so likely does the seller. Your representative can help communicate that.
Out-Hustle any Competitors. If you have confidence in your choice, make your best offer and do so quickly. Be flexible to sellers needs and closing dates. It should be absolutely clear to the seller that you are prepared, willing and capable to buy their home and do so quickly. Don't wait through a weekend when you can respond to a request today. There should be no doubt in the mind of the seller who the most serious, qualified buyer is in a competitive situation.
Buying real estate successfully in a low inventory, high-demand market like Austin takes decisiveness and urgency. It also can take quality representation. Be prepared with knowing what you want, how much you can afford and how it will be financed, Don't be afraid to move forward. Being properly prepared can help you do so with confidence.