by Land Legacy
on Thursday, July 1st, 2021 at 1:00pm.
The Real Estate Market is Booming
The real estate market has been unusually hot this year, despite the COVID-19 related global crisis. Hyperactive buyers are increasing home prices, causing homes and ranches to sell faster than ever, and creating heavy competition in the housing market. Low supply and high demand have turned the real estate market upside down, and off-market properties have been surging like never before. An off-market property is a house that sells without being publicly advertised or listed. In this case, the seller either advertises the home privately to a select group of potential buyers or negotiates with the buyer directly.
2021’s Housing Boom: An Explanation
A plummet in supply, dozens of bids on a single home, people moving to Texas from out of state, and all-cash offers are increasing demand in the local real estate market. There are a few factors that have contributed to the residential housing boom: an improved economy, a new generation of millennials entering their peak homebuying years, a plummet in supply, and an increasingly competitive market. Low mortgage rates and a shift in the work-from-home labor force have also contributed to an increase in the pool of potential buyers. The demand for homes is outpacing Texas’s supply, which has led to a heavily competitive market with quick turnovers, properties bought sight unseen, and all-cash offers from savvy investors. Because homes are selling so quickly, fewer sellers feel the need to hire a realtor and list their home the traditional way - a risky game in a tricky market.
Why Do Sellers List Their Houses Off the Market?
Most sellers list their homes off the market for a few reasons: a desire for privacy, to generate buyer interest, or negative assumptions about hiring a realtor. When a homeowner lists off the market for privacy, they may not want their sale to become public knowledge. If someone is selling a rental property that currently has tenants or the property is being sold due to a tragic life event, going off-market helps owners avoid an endless stream of foot traffic from strangers or nosy neighbors. Some sellers may advertise their property as a “Coming Soon” listing before they list their homes on the MLS because they want to increase buzz around their property to start a bidding war. Lastly, there are homeowners who want to avoid hiring a realtor due to common misconceptions - it’s too much hassle, it’s easier to do things yourself, etc. Click the link to learn why hiring a realtor saves sellers time and money.
If It Sounds Too Good to Be True…
“Off-market” is not a synonym for “fair price” or even “best price.” It’s difficult to determine fair market value for a property if the pool of buyers is smaller - performing a comparative market analysis is the only way to know if a house is reasonably priced for its location, age, and amenities. One of the largest benefits of listing or buying your home through a seasoned realtor is the assurance that you’ll get the most reasonable price for current market conditions. Furthermore, finding off-market listings is riskier and more time-consuming than browsing properties on the MLS.
The Real Estate Market Can Turn On a Dime
It’s important to know who you can trust for insider information and hard-earned experience and expertise. Legacy Broker Group prioritizes integrity over immediacy and has decades of experience in Texas land, ranch, and residential real estate sales to give you the five-star service you deserve. Learn more about available listings and best practices for buyers and sellers at www.legacybrokergroup.com or call us at 830-446-3378.