These Tarrant County Homes For Sale Show That Multiple Offers Haven’t Gone Away

Open your computer, turn on the news, listen to the talking heads on the radio and you’ll hear some variation of: “The housing market is in a free fall,” or “Billions of dollars of equity has vanished in the housing market,” and also “Prices are plunging for homes.” First, let’s step away from the national news media sites that just want your click. You are smarter than that and I know that because you’re reading Tarrant County Tuesday and that alone makes you a pretty smart cookie.

Is the 2023 housing market the same as 2022? No, of course not. Heck, in 2022 we had two completely different housing markets in the span of 12 months. Yes, if a home was bought in 2022 and the owners tried to sell it now they would probably not sell it for the price they bought it last year. But to claim the market is a “free fall” is just idiotic.

Believe it or not, in the Dallas-Fort Worth area, we are still seeing listings that stay on the market for a few days, that are garnering multiple offers, and that are even attracting above-list price offers. Let’s figure out why.

Why We Are Still Seeing Multiple Offers

There are a number of reasons why we are still seeing multiple offers and above-list price offers in this slower market. Every situation is unique and every home is completely different, so there’s not one reason or magic formula that will work for every listing that hits the market.

What we’ve discovered is that it’s not specific to a price point, location, condition, style, or home configuration that is most likely to attract multiple offers. It’s a combination of all those and other reasons in various quantities. Every home is different. In the end, the homes that have received multiple offers have been marketed expertly by a quality Realtor. Kudos to sellers for putting their trust in professionals who know what they’re doing.

Price It Right

If you show 10 people sales price data on homes in various neighborhoods and ask them to price an upcoming listing, you’ll probably get 10 different prices. There is no one theory when it comes to pricing a home to sell. Some think pricing on the lower side will let buyers think they’re getting a steal of a deal and will offer more. Others subscribe to the method of pricing a home on the higher side of the data. That way if they get a less-than-list price offer they won’t feel as badly about negotiating a lesser price.

What the data is showing these days is to price the home to sell – not too high and not too low – and the market will respond if you priced it correctly. Especially in a slower sales market, pricing a home too high can be detrimental and could immediately turn off prospective buyers. We are not in 2022 where we could just throw out a price and expect to get that amount or more. More so than ever, doing the homework and looking strictly at neighborhood data and comps will not only help get one offer but possibly more as well.

Move-In Ready

Let’s face it, not many of us are very handy when it comes to home updating or repair. How many of us really want to take on “a project” when buying a home? A few buckets of paint? OK, that is fine, but homes that need major work are not likely to entice the majority of buyers these days.

Homes that are totally move-in ready — updated and trendy flooring, colors, counters, and plumbing fixtures — will have the most potential for multiple offers. One home recently went under contract and received multiple, above-list price offers in an area where two identical homes (size not condition) have been sitting on the market for now, going on 120-plus days.

The reason? The home under contract is 100 percent move-in ready and the others are either in questionable condition or poorly finished. Buyers are smart. They know when a home is cheaply finished or flipped. They know that they don’t have to pay top dollar for homes that are not move-in ready.

The Value of The Neighborhood

Not every home that receives multiple offers is move-in ready or updated with the latest and greatest colors and finishes. Sometimes homes will receive multiple offers when they are priced right for their condition. Sometimes homes will receive multiple offers when they are in a unique location and are an opportunity for buyers to live in an area where homes don’t frequently come available.

In Fort Worth, a home built in 1982 — and appeared that it had not been updated since it was first built — went on the market for $599,000 and received multiple offers, and in four days was sold for $620,000. Why would a home in this condition garner so much attention and demand? Because the neighborhood the home is located in doesn’t see many homes listed for sale, buyers realized the upside of paying a higher than list price amount and then updating the home would still allow for tremendous equity and value.

Another home in North Richland Hills was not only dated but the sellers didn’t have time to remove unwanted items from the home. Within days the home had multiple offers above a desired sales price from a bevy of investors who again saw the potential of the home once rid of items and updated.

Housing Inventory

Housing inventory in D-FW is still lower than desired for a balanced market. While stats show that inventory is increasing, what is actually happening is that some homes are staying on the market longer and contributing to the inventory. Yes, it’s better inventory than 2022 when there was very little inventory, but we need more homes to hit the market to meet the demand of current buyers.

Homes receiving multiple offers will not be a thing of the past. Even if inventory were to somehow quickly spike, homes that are priced right, move-in ready, located in desired areas or that have plenty of fixer-upper potential will always be in demand and buyers will be willing to submit an offer, even one over the asking price.

So stop believing the national nay-sayers. Find a good Realtor. Get your home looking pristine. Price it correctly. Make prospective buyers see the value in your home and not be afraid to pay above asking price. It is possible.