The market is heating up
Dallas had a run on pre-owned homes over the past year.
According to The Dallas Morning News, sales of pre-owned single family homes rose by 22% between March 2012 and March 2013.
That’s a huge increase in demand, and supply is shrinking as a result.
With heat comes confusion
Sometimes it’s hard to tell if the real estate market is really based on supply and demand.
Prices in any market, not just real estate, go up when demand increases or supply decreases.
But real estate is a complex market, and it can be difficult to tell why inventory is shrinking. What it comes down to is who is doing the buying?
A number of factors contribute to real estate market fluctuations.
- Increased demand from retail buyers.
- Increased demand from investors.
- Fewer sellers listing their homes because they still think it’s a bad time to sell.
- The home is not listed before it sells in a “hip pocket” deal.
The credit market matters
Increased demand from retail buyers occurs most often when more people have an easier time securing mortgages.
Banks require you to prove you will be able to pay for the home over the life of the mortgage. The burden of proof, if you will, is on you.
Banks require more or less proof, depending on market conditions, not just in your city, not just in the USA, but the entire world.
We live in an interconnected world full of fragmented markets.
When banks grow fearful, it becomes difficult for even the most well qualified borrowers to secure a mortgage.
Perception is reality
Your perception of the market dictates whether or not you should list your home or stick around for a while.
If you’re thinking about listing your home, your perception of the market has a lot to do with whether or not you’re going to go ahead and list.
If prices increase sharply, you will be more likely tolist your house. When you list your house, inventory grows.
But prices don’t come down due to increased inventory when the market goes from cold to hot.
What if you’re worried more about your house than the market?
Your perception of the house you want to sell, whether it’s in good shape, bad shape, or you believe it is broken beyond repair, will also dictate your next step.
Is it in a good neighborhood? Is it in a neighborhood buyers find less than desirable?
Ugly houses in bad neighborhoods are difficult to sell, but there is an answer, a way to sell your house. And get it sold fast, too.
What can you do with an ugly house?
Real estate investors love ugly houses, but some retail buyers using hard money to finance their house may also buy an unlisted house.
When an unlisted home is sold, it’s called a “hip pocket deal” in the real estate industry.
You’ll hear hip pocket deals are only for mega-million-dollar homes, but that’s not true for people who have good, long standing relationships with other people in their communities.
If you’re the type who “knows everyone,” you might be able to mention you’re selling a run-down house you’ve inherited and find a hard-money buyer faster than you could sell your house with the help of a realtor.
When you’re selling an ugly house, it can be hard enough to find a buyer, let alone many buyers who want to bid competitively.
Your last resort
Have you tried everything? Do you want the house out of your hair as quick as possible? Yesterday?
Clicking on the next link is the same as picking up the phone, dialing our number and screaming “Sell my house, Dallas!” into your receiver.
Unlike a lot of those “We Buy Houses for Cash!” scams, we do more than just list your property. We make you a cash offer on the spot after we see your property.
If you know of an faster way to sell a house, we want to know about it!
Chas Carrier is a cash home buyer and real estate expert who buys and sells homes throughout the DFW metroplex with We Buy Ugly Houses Dallas.