Home Buying in Austin>Question Details

Jonathan Gre…, Home Buyer in Austin, TX

How hard are sellers chasing offers at high price points in Central Austin/Tarrytown?

Asked by Jonathan Greenlee, Austin, TX Mon Aug 6, 2012

We're a small family doing initial research while we get our financing together. Ratios and DP say the maximum we could take is around 650. In this low rate market, we'd like to buy big. Considering negotiation possibilities, what's a reasonable maximum listed price we should be searching for?

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Jonathan,

Just having closed a buyer last week that I represented with a purchase on Exposition, I can tell you that the sellers were hanging pretty tough. We started across the river and submitted an offer $20,000 high on a $775,000 list price when we were told another offer was coming in. We lost that one. We tried to come in $20 low on $750,000 and the seller only gave us $5,000. We want away and looked for another week, but ended up coming back. What some other other agents said is correct that the amount of negotiation depends on if the home is over priced, but if the home is priced correctly, the sellers are not moving much because they do not have to. My advice is to make sure you hire an agent that has closed a home in Tarrytown in the last 60 days. Let me know if I can help you.

Sincerely,
John Mick REALTOR
RE/MAX Capital City
512-964-5724
1 vote Thank Flag Link Mon Aug 6, 2012
Let me see if I can ask a more broad question: what will the temperature be tomorrow, near MoPac and 45th St at around 1:45 p.m....

Is this a real question? What are you selling? When do you plan to sell it? Does it need any repairs? How much do you owe? Where do you plan to move to? These are all relevant and to the point! You express a focus of a maximum you can borrow. Why don't you try focusing on your needs and work from there.
1 vote Thank Flag Link Tue Aug 7, 2012
I've seen houses in Tarrytown and Clarksville go for asking and others go for high, but not asking. I would suggest buying a smaller house and adding on. That way, you'll be in the desired area but not blow your budget. and resale is excellent whether you add on or not becuase it's all about LOCATION!
1 vote Thank Flag Link Tue Aug 7, 2012
I agree. Central Austin neighborhoods are perfect for adding on, as the land is so valuable, renovations never put you "under water". (Well, most renovations.)
Flag Tue Aug 7, 2012
Johnathon,
Many good answers given already. Good for to do your preliminary work up front. While the recent past has shown the market to be hot overall above $600 is weakening. Not to say it's bad by any means but it is softening.

If I can be of any asistance in the future just let me know.
Best wishes and happy house hunting.
Bill
1 vote Thank Flag Link Mon Aug 6, 2012
Jonathan, West Austin homes in the $500,000- 1MM range have sold for 97-98% of list price in the last 90 days. If your target loan is 650k, adding a 10% down payment suggests homes listed in the mid to upper 700's. If you are putting down 20%, then mid 800's seems reasonable.

I've lived in, and have sold homes in West Austin for over 10 years. I am also a mortgage banker and offer my buyer clients turn key service-- from loan approval to home search and funding. I am happy to answer any questions you may have. Contact me any time.

Jeff Harris, ABR
Broker| Mortgage Banker
512-917-8142 direct
http://www.trueaustinluxury.com
1 vote Thank Flag Link Mon Aug 6, 2012
Every Seller is motivated by different things. It's your Buyer's Agent that will find that out. That being said, I'd start your search up to 700K. And maybe even browse a bit higher. I've seen things priced at 502K, 602K, 702K, etc, and in my opinion, that's the dumbest pricing strategy EVER! But, you'll miss it, if you start too low. In this market, Sellers and their Agents are pricing aggressively high, especially if they're in no hurry to sell. I priced a home for a client at 499K when the comps purely showed 450K. There was a multiple offer bidding war in the first two days! My clients pocketed an extra 50K!

On the other side of that coin, I've won multiple offers, representing Buyers, against cash, and we were 11K under asking price, all by aligning well with the seller's agent and finding out what motivated the Seller. In this case, the Seller had done all the renovations. My buyer's loved how the house looked. Everyone else wanted to gut it. I made sure she fell in love with my clients, and it worked! I'm more than happy to send you their information if you want a reference! Over the past 12 months, I've won 9 out of 9 of my Multiple Offer Situations. I won't win every one of them, but rest assured, you'll be in the best hands, and I'll be up til Midnight making it happen. People don't sell homes based on price alone! In many cases, residential real estate is an emotional transaction.

Best of luck in finding your Dream Home in Austin!

Charles Runnels
Real Estate Nerd
Presidio Group Realty
512.914.0183
1 vote Thank Flag Link Mon Aug 6, 2012
Jonathan, as you've already been informed, there is no simple answer for you. Historical attitudes about what you're talking about, were that one should "buy the maximum" in a low interest environment. That being said, the recent housing bubble collapse shows that might not always be the best advice.

What I can do, is show you the comparable market value of other homes to ensure that the one you're interested in isn't outside reasonable bounds for the area, condition and utility of the market where you're looking. It's part of a consumer making an informed and well considered choice and something I always do for clients before they make an offer. Never fall in love with a property until after you own it!

Tarrytown and other central locations are "hot" right now, and there are situations where multiple offers are being made on properties that have just come on the market. This can cause people to overbid on a property and end up in situations where they have spent money on an offer and then it won't appraise. Always know what you think it's worth and where you would like to limit your offer.

I'd like to help you, just contact me to begin a discussion of what you need and want and we'll do it right.

Ron Cullinan
CRS, GRI, ABR, CLHMS, e-Pro
Avalar Austin
512-799-3239
http://www.austinonlinehomes.com
1 vote Thank Flag Link Mon Aug 6, 2012
That's a great question - and I wish there was a single answer. But every seller has a different number that they want. Tarry Town, and other more central locations with higher price points are reacting differently than other Austin Areas, which may be a good thing in your situation.
I'd suggest having a good talk with your lender (If you need some recommendations let me know) to get a solid understanding of what you can do.
Then, when you are ready, let me know and I'll negotiate the best price for your next home.

Eric Hegwer, Realtor
JB Goodwin
-----------------------------
e::Eric@EricEstate.com
p::512.712,5842
g::Google+
w: http://:www.EricEstate.com
t::@EricEstate
f::ericestate
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1 vote Thank Flag Link Mon Aug 6, 2012
I'd turn the tables on some of the properties that have been sitting on the market. I'd stick to the neighborhood you love (Like TarryTown), but sake an overpriced $800K property that has been on the market for 4-5 months, and offer something a little lower than what other sold comps have run.
Flag Mon Aug 6, 2012
Eric, you make a good point about different locations reacting differently. Let me ask another, different question. If I were solely focused on value for my $$ and being able to apply some pressure to get an aggressive price, what regions around Austin seem like they're more responsive right now?
Flag Mon Aug 6, 2012
Hello Jonathan,

It is really hard to say. Each listing stands on it's own. Meaning that it may be priced well or it could be overpriced. Also each seller is in a different financial position with different requirements and different level's of flexibility when it comes to what they would accept for their home. In the end the market determines the value and not the seller or their agent. That is why it is truly important to fully understand the market and what is going on.

If you have any questions on the homes or financing please let me know. I am a Realtor and mortgage broker in the Austin area. Even if you are working with a Realtor already I can most likely help you with your financing options and save you thousands on your financing because I am wholesale mortgage broker who works with many different lenders. This allows me to always get you the very best deal on your financing. If you would like to discuss please give me a call or email me anytime.

Best of luck to you,

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
Web Reference: http://www.AustinListed.com
1 vote Thank Flag Link Mon Aug 6, 2012
Having sold homes in Tarrytown, I can say this neighborhood definately seems to hold its value. Have your Realtor prepare comps for the type of home your interested in. The Tarrytown neighborhood is very highly sought after for a multitude of reasons: location, schools, proxemity to downtown and entertainment districts. If the house is priced right offering $20K+ less than asking is an insult both to the seller and listing agent. Imagine yourself in their shoes how would you feel if you do the work and someone offers you so much less than you know its worth. If the house is overpriced then $20K off may not be such a big deal. The key is to do your homework and make a reasonable offer and you will have an accepted offer. If you need help please let me know, I would be happy to assist you.

Sincerely,
Betina

Betina Foreman- Realtor, C.N.E.
Austin Home Girls Realty
1601 West 6th Street
Austin, TX 78703
0 votes Thank Flag Link Mon Aug 13, 2012
Jonathan, I had answered you Monday when you asked this question but just noticed my answer is missing for some reason?!
Nevertheless, quite a few agents said what I said with regard to most of the homes in that area going for near or even above asking price. This means basically that the sellers are not chasing offers as you put it… technically there is less than six months supply in that area making it more of a sellers market than anything. Sellers there know that their properties are in high demand, and since I do quite a bit of business in that area, I see most of the properties going for top dollar. With that being said, each and every seller has their own motivation and the trick is for me to find the right proprty and that motivation and then negotiate to the best of my abilities to get you the lowest price, along with the best terms and conditions!! If you're not yet working with a Realtor, feel free to click on my name and review my credentials, client testimonials, etc., and contact me if I may be of assistance. I'm a Master Instructor with Keller Williams Realty, Austin's #1 Real Estate company, and specialize in Negotiations, Buyer Representation, etc. Also, I have a great team of lenders, inspectors, title people, etc. and do not charge anything to you for my extensive services.

With regard to a reasonable maximum list price, that really depends on what your down payment amount is in addition to the amount you could finance of course. I'd be happy to discuss that with you and figure out the best game plan to get you the most house for the least amount of money. I know you have a growing family with a daughter and dog and can help you find just the right home and help you stop paying rent as soon as possible! Hope to hear from you...
Joe Jarusinsky, Realtor/Master Instructor
Keller Williams Realty
512-261-4415
0 votes Thank Flag Link Wed Aug 8, 2012
HI Jonathan,
I live in Central Austin and specialize in Central Austin. Basically, it all comes down to pricing and how the agent priced the house. If its priced right at or below market value(a CMA will determine this value) chances are that there will be multiple offers within days of the market and you will have to bid over asking to get it. If its over priced and has been on the market more than about a month, you have a good chance of getting the house for a lower price. The market determines the value not the seller. Does that make sense?

I would love the opportunity to work with you and your family. There are so many awesome pockets in Central Austin and each of which has its own vibe,feel and uniqueness.
Best of Luck!
Shannan Riemer
0 votes Thank Flag Link Mon Aug 6, 2012
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