Dallas Morning News reports home buyers and sellers are frustrated with low supply and broken contracts

Source: Hot enough for you? D-FW home prices up at a searing pace

Buyers and sellers are frustrated. In my practice, its true, more deals than ever break apart these days. The challenge is to find buyers that will stick to their contracts. I always tell my clients we want the highest offer that will close!  We don’t want a buyer that tells their agent to put it under contract then decide if they really want the home. I always talk to the buyer’s agent to get the back story on the buyer. It has to fit the situation. I always talk to the lender to find out how much documentation has been collected and verified. All documents should have already been collected and reviewed by the lender. I ask them a hypothetical question, “If you had a contract, option period closed, appraisal and loan application done, what else do you need from your client to submit the loan to underwriting today? It’s a long question but flushes out folks experimenting to see if they can get a loan. I speak to both buyer agent and lender to put their reputation on the line. I want to hear them say “My client is ready, willing, and able to buy right now and I can close this deal”. If the buyer is well prepared, has looked at many home choices to know what they want, and is spoken highly of by agent and lender, that is the best we can do to reduce the risk of contract termination.

Steve Brown of the Dallas Morning News reports overall 2015 first half residential preowned home sales have reached new highs. Some markets up as high as 30% over last year. Growth is fueled by the hot job market continuing the housing shortage. Prices for preowned homes are up 30 percent in Oak Cliff, 29 percent in Fairview and 22 percent in North Dallas in the first six months of 2015. He quotes an Ebby Halliday agent that says “more contracts terminate now in the option period than ever before.”

Trends for First Half of 2015

 

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