The Fort Worth Real Estate Market Proves That Multiple Offers Are Not a Thing of the Past

Unless you’ve been living under a rock for the past 18 months, you know that the 2022 real estate market is in the rearview mirror. Last year we had a market where many neighborhoods had inventory that was better counted in weeks rather than months. It was a market where potential homebuyers felt battered and bruised after submitting offers on home after home, many offering far more than the asking price. The 2022 market was one where listings with days on market still in the single-digit range felt like they had been listed for an eternity.

Sellers would say the 2022 real estate market was a lot of fun. Of course, they would. Many sellers realized tremendous profits when selling their homes and loved being offered short option periods, not having to pay for the survey or title policy, and getting to choose from myriad offers.

Buyers, on the other hand, would say the 2022 real estate market was brutal. Those that were fortunate to have been selected for a home felt like they won the lottery, but the process was mostly miserable.

Realtors were flat-out exhausted. Whether representing the buyers or sellers, for many it was lucrative. Certainly, the Realtors worked for their commissions.

But, those days are gone …

… or are they?

Multiple Offers Are Not Going Anywhere Yet

Yes. Of course, that particular moment in time — low interest rates, high demand, low inventory — probably won’t be seen for years. Or maybe ever again. But the sky is not falling and the market hasn’t stopped in its tracks.

While inventory is slightly better, homes are still selling in a relatively short time compared to historical figures. Homes are still selling for above the asking price. Sellers receiving multiple offers on their homes is still commonplace.

At the recent National Realtor Association Real Estate Forecast Summit, NAR Deputy Chief Economist Jessica Lautz informed us that the average number of offers a home received thus far in 2023 is 3.5. (I’m guessing that 0.5 offer was the agent not getting the paperwork submitted in time?)

That is probably surprising to many out there, but talking to Fort Worth Realtors, they would agree. When researching this story, I asked a number of agents if they had been in a multiple-offer situation either on the buying or selling side and most said that they had been in at least one in 2023.

The reason for homes still receiving multiple offers in a short period of time is very basic. Location. Condition. Price.

Location

I’m not going to say, “location, location, location,” because that’s such an overused phrase in real estate, but it’s true. You can’t replace a home that is in a desirable area of your city. Whether it’s a prestigious neighborhood, one where the public schools are highly respected, or offers amazing proximity that meets a buyer’s needs, a home located in a desirable area is always going to gain the attention of buyers.

Condition

When it comes to the condition of the home, this is a huge reason homes are still getting multiple offers. Remember we are still welcoming a large number of out-of-state buyers to the Lone Star State. Those buyers might not have the time or the knowledge of who to contact for a kitchen remodel or simple painting of cabinets.

Buyers will pay and do pay more for a home that has been freshly updated. It doesn’t even have to be a full home makeover. A kitchen where the cabinets have been recently painted will fetch multiple offers. Small things like paint or new carpet in rooms or even a yard that has been landscaped well. If a buyer can move into a home and not have to spend any more time or money making the house their home, there will always been interest.

However – homes that need work and are priced accordingly also can experience multiple offers. Deals are out there for those who are willing and able to do the work.

Price

It’s not a specific price point that attracts or turns away multiple offers. The homes in this article were priced from the $300,000s to the millions and all received more than one offer. Pricing a home to sell is the key to a successful transition in this 2023 market. That may seem obvious, but you would be surprised how many sellers and Realtors are still stuck in 2022 and are doing a huge disservice to themselves by overpricing their properties.

It’s not rocket science (although it feels like it sometimes), but having a firm understanding of the area and neighborhood is imperative for every Realtor before they list a home for sale. Data can only tell us so much about the state of the market, and those Realtors who are advising their clients to list – or those sellers who stubbornly want to list higher — are going to see their home sit, sit, sit, and subsequently lower the asking price and probably receive an offer considerably less than the initial price.

Multiple offers are and will continue to happen. Homes that are in desirable locations, that have been correctly updated or are realistic about updates needed, and that have been priced correctly by a knowledgeable Realtor will not stay on the market long and could very well see multiple offers.

Even in this 2023 market.