Austin Real Estate: The Times, They Are A-Changin’
Dec. 12. 2023
Hey there, fellow Austinites and real estate enthusiasts! It’s December 2023, and boy, has our beloved Austin real estate scene taken a turn. Remember the craziness of 2020-2022, with houses selling like hotcakes? Well, things have cooled down a bit, and that’s actually not a bad thing. Let’s dive into what’s happening and how we’re adapting here at the Brinkman Team with some clever financing tricks up our sleeves.
Adapting to the New Norms
So, here’s the scoop: Austin’s real estate market has cooled off from its previous sizzling state. Back in May 2022, it was a whole different ball game with prices hitting the roof. But now, we’re seeing a shift – a cool breeze, if you will.
- More Houses Up for Grabs: We’ve got more homes on the market now. This means you’ve got options, people!
- Rent’s Taking a Breather: Rent prices are finally chilling out, and there’s more rental space available too.
- Buyers Playing It Cool: There’s a noticeable dip in folks applying for home loans and buying houses.
- Houses Back on the Market: We’re seeing more homes make a comeback to the market after initially going pending.
- Buyers Getting Picky: Yep, buyers are taking their sweet time deciding.
- Fewer Peeps at Open Houses: Home showings have taken a hit too.
- Homes Hanging Out Longer: Homes are now taking an average of 65 days to sell around here.
- Prices Getting a Trim: We’re talking a 10% price drop year-over-year in some areas.
What’s This Mean for Us?
Change is the only constant, right? Those days of bidding wars and paying way over the asking price are behind us in Austin. It’s actually good news because let’s face it, that kind of market was crazy.
The Big Challenge: Making Homes Affordable
Alright, let me be frank – one of the main issues we’re facing right now is affordability. Not as many buyers are out there, so we gotta get crafty with how we sell homes. This is where some creative financing strategies come into play.
Seller Financing: Not as Scary as It Sounds
Seller financing might sound a bit intimidating, but trust me, it’s pretty cool once you get the hang of it. It’s all about finding what works for both the seller and the buyer.
- Equity Access: As a seller, you won’t get all your cash at once. It depends on the buyer’s down payment.
- Contract Talk: The usual stuff still applies – earnest money, closing dates, etc. The twist? Adding a seller financing addendum.
- Picking the Right Buyer: We’re talking about working with buyers who are qualified but looking for a better deal on their payments.
- Saving on Closing Costs: Lawyers will tailor the documents, which means saving some bucks on closing costs.
- Balloon Payments: Typically, there’s a 3-year balloon payment, but hey, everything’s negotiable.
Rate Buy-Downs: A Little Goes a Long Way
Rate buy-downs are another gem. Here, the seller helps lower the buyer’s interest rate. It’s a win-win because it’s often more cost-effective than dropping the house price like crazy.
The Austin, Texas Appeal: Still Strong but Different
Austin is still a great place to live, but with higher interest rates and property taxes, buying a house here needs some smart thinking. For sellers, this means pricing your home right and making it look like a million bucks. First impressions count, especially when there’s a lot of competition.
Other Creative Strategies
There’s also this thing called ‘subject to’ financing. It’s like the buyer taking over the seller’s mortgage payments. The terms, like down payments and balloon payments, are flexible.
Keeping It Real
As the market shifts, it’s vital for sellers to understand their bottom line and have a Plan B. Remember, every home has its price, but it might not be what you initially hoped for. It’s all about adapting, being open to new strategies, and keeping an eye on the prize. Whether you’re buying, selling, or just window-shopping, knowing the lay of the land is crucial. And working with a proactive, experienced agent is key to navigating these waters.
The Brinkman Team Difference
I’m an award-winning Broker Associate based right here in the heart of Austin, Texas. Over the past twelve years, I’ve been building my business and assembling a team of incredibly talented real estate rock stars. Together, we’ve been conquering the ever-exciting and ever-changing Austin market.
And let me tell you a little secret behind The Brinkman Team’s success, we’ve got systems and checklists in place that work like a well-oiled machine. These tools not only keep us organized, but they also ensure that our clients have a clear understanding of our process and know exactly what to expect. It’s the secret sauce that gets us to the finish line seamlessly, time and time again. Our track record speaks for itself, my friends!
Buyers: If you’re planning to make a move within the Austin metro area, my team and I would be absolutely honored to lend a helping hand. Schedule a consultation with me today, and I’ll whip up a free custom property search tailored specifically to your needs and desires.
Sellers: If you’ve got the itch to know the value of your Austin home, don’t hesitate to reach out and schedule a consultation with me. I’ve got the inside scoop and can provide you with a customized home report that’ll leave you feeling confident and informed.