Right now is a crazy time to buy and sell in Austin, Texas. Due to a number of factors (COVID, lumber shortages, new employers moving to Austin, low interest rates, etc.) the Austin real estate market is extremely hot right now. On average, homes are selling 5 – 20% over list price with multiple offers. With this in mind, I’ve prepared a brief “Buyer’s Survival Guide” with some tips for those looking to buy a house in 2021.
- Start Early. If you have plans to buy in the next year, email me today. This market is competitive and it may take longer to present a winning offer on a home, even if you are well qualified to buy.
- Consider new construction. Almost all new construction is currently sold out in Austin. New phases and sections will open up this Spring, but will likely sell out in the first week or two due to extremely high interest. Many builders are currently taking waitlists and will call names from them on a first come, first serve basis. The earlier you can get on these lists the better as it will take a few months to wait and few more months to build. Contact me for more details; I have connections and direct cell numbers for many home builders in the area!
- Save, save, save. Lenders can only issue loans up to the appraised value of a property. When homes sell well over the asking price, cash is needed to cover the difference between the appraised value and the purchase price. Anything you can do between now and when you’re ready to buy to be able to bring extra funds to the table will help immensely.
- Do not wait for prices to go down. The biggest thing I can stress right now is that pricing isn’t likely to slow down. Hopefully, we will soon have more inventory in Austin which will reduce some competition and multiple offer scenarios. However, with new companies relocating to Austin and current home sales driving prices up, a ‘dip’ in Austin’s market is very unlikely.
Current homeowners: If you are thinking of moving out of the Austin area, please contact me. I have several well-qualified buyers who would love to view your home, and now is a great time to pocket extra earnings while the inventory is low and demand is extremely high.
However, if you currently own your home and are planning to stay in Austin and are not yet under contract on a new home, contact me. In this market, I recommend waiting to sell until you are under contract for your new home or have a clear plan of where you’ll stay while you’re looking as we can likely sell your current home far faster than we can contract on a new one.
I’d love to be your resource for all things real estate, so please reach out any time!
February 13, 2021