2021 finished as another record year for home sales in the Greater Houston Area, with the average price (across all price ranges and areas) increasing by 15%. Lower inventory levels could affect our sales numbers in 2022, but there are still plenty of buyers in the market This scarcity of products is causing the continuation of multiple offers on attractive properties and even on flawed properties. This can be frustrating to many buyers, that don’t want to overpay and don’t want to give up all of their contingencies (option period, financing approval, appraisal, etc) in order to win the deal over other buyers, many of which are investors from outside the area.
The main factors driving the high demand are strong local “move up” demand, domestic and international relocation to Texas, and low-interest rates, aided by the need for larger homes by people that now work from home and may educate children at home. But interest rates are on the rise and expected to be 1% higher by the end of the year.
It’s a good time to be a seller, especially if you are positioned properly to attract multiple offers. A few tips to get your home ready for sale:
Price it right – No one wants to leave money on the table by underpricing, but overpricing can lead to low showing traffic and additional time on the market, reducing the seller’s negotiation power. Price the property at the top of the range of fair market value, but not over that range.
Put your best face forward – Complete minor repairs and freshen up the home so that it is move-in ready. A complete renovation is not necessary, but fresh paint and carpet, updated light fixtures and ceiling fans in the main living areas, a fully operational kitchen, and an attractive master bathroom will go a long way in attracting the most buyer prospects and the highest offers.
Improve critical systems – Buyers’ biggest concerns regarding value is the status of critical systems – HVAC, water heater, roof, plumbing, and electrical. Providing current age and service records for these critical home systems showing that they have been well maintained will encourage the strongest offers. If these systems are in need of repair or replacement, these dollars will be well spent and will be recouped in the sale price.
