In This Real Estate Market, is it OK to Make an Offer?

Let’s face it, the past 12 to 24 months have been brutal to buyers in the Dallas-Fort Worth real estate market. Buyers have been forced to deal with low housing inventory, high demand from other buyers, multiple offers, and of course, the horrific over-list price offers.

As we discussed last week in Tarrant County Tuesday, we’re seeing signs of the real estate heading towards balance — remember, that does not mean “bubble,” “recession,” or “sales of a lifetime” — where the inventory is slightly creeping upwards and homes are staying on the market a few days longer.

Is the asking price still a suggested starting price?

One thing that many buyers have not done in a long time is even contemplate making an offer on a home that is below the asking price. The asking price has been more of a “suggested starting price” for many homes as the market has seen multiple offers with prices starting at six figures over the asking price.

Frustration, disappointment, and anger have been staple emotions from buyers recently. Many have just stopped looking entirely and decided to lease. Others have not even bothered making offers when the asking price is at the top of their budget for fear that their offer won’t even be considered.

That all could be slowly changing. Yes, homes still are going quickly. Yes, we are still seeing multiple-offer situations. Yes, homes are still going for over the asking price. However, that’s not happening as much as in the past, which should give buyers a pep in their step.

Let’s look at the data.

While numbers don’t always tell us everything in real estate, it is interesting to look at data to see if there is a trend occurring, especially when it comes to what buyers are offering compared to the asking price for homes. Here is a quick search of a few Fort Worth neighborhoods offering various price points and neighboring communities for the average sales price versus the asking price over the past 90 and 30 days.

It does appear that in the past 30 days many areas are seeing a few less outrageous over-asking price offers. The only community that has had a small increase is in Aledo. If buyers are looking to swing out to the Aledo area, there might not be much wiggle room on price.

What About Crazy Over-Asking Offers?

Look, if someone wants a home and they have the means, they are probably still going to make extremely high over-asking offers. Inventory remains low and when homes that are move-in ready and meet all the needs of a desperate buyer, expect multiple offers and high over-asking offers. But once again, let’s look at what the data is telling us.

Here is a breakdown of the same aforementioned communities and the difference in the amount over asking versus the sales price over the past 90 and 30 days.

Look at some of those numbers — 120 percent, 130 percent, and 138 percent over-asking price offers for homes of all price points. In every neighborhood save the Tanglewood neighborhood, which is highly coveted for location and the public schools offered to residents, the percentage has dropped.

Realtor Greg Potts of Compass in Fort Worth recently informed CandysDirt.com that he has had an uptick in making offers and receiving offers on his listings.

“There are definitely a lot more options for buyers,” Potts said. “I have been involved in more negotiations over the past two weeks than in the past two years. That is with buyers agents on my listings and with my buyers that I’m showing.”

Don’t be afraid. Make an offer.

Take heart buyers: You might still have to pay the asking price, but the days of double-digit percent over the asking price might be slowing down. Trust the data. Trust your Realtor. If you absolutely want a home and don’t care what it takes, then make that crazy offer. If you are interested but are okay losing on a listing, don’t be afraid to make an offer of list price or slightly — did you hear me? SLIGHTLY — over the asking price.

Sellers want to sell. Buyers want to buy. Feel confident in making an offer. All a seller can say is, “no,” or come back with a counter. There might be a balancing market in real estate yet.