I wanted to do a little research for you. Today I am focusing on what sold in the last month in The Woodlands that was listed and went under contract in 7 days or less. These are going to be those move in ready homes. The ones that sell themselves in what feels to be overnight.
Fifty-nine homes were listed and under contract in one week or less here in The Woodlands. Of those 59, 45 sold over asking price, 7 sold at list price, and 7 sold below asking price with all homes between the range of the 96% of the list price - 116% of the list price. (To make this February post, I gathered data from the last 33 days. And keep in mind this activity is really driven from the month of January, when most of these went under contract.)
If you want to see exactly what a home sold for,please click this link to become connected with me on the har.com app. Curious how much over the listing price the top 11 homes sold for? I have included those below with links...
Homes at or below 300,000 sold for 10,000 - 39,000 over asking price.
Homes above 300,000 and below 400,000 sold for 5,000 - 57,000 over asking price.
Homes above 400,000 and below 500,000 sold for 5,000 - 43,000 over asking price.
Homes at 500,000 to 700,000 sold for 6,000 - 60,000 over asking price.
Homes between 700,000 and 999,000 sold for 20,000 - 65,000 over asking price.
Homes over 1,000,000 sold for 50,000 to 80,000 over asking price.
Now keep in mind, these are only the most desirable homes that received multiple offers. There were also 67 other homes on the market. To see all data points I used for this blog post, click this link. But it is pretty safe to say most homes coming onto the market right now, so the pending homes, over 60% go under contract in less than a week. I want to also point out that there are only 74 active homes on the market right now with only 24 of those homes coming onto the market this last week, and there are 148 pending homes.
Year to date (I stopped on the 20th of February), 161 homes have sold so far this year in The Woodlands, but this time last year 225. What does this mean? Inventory is down. Couple this with how high the demand is and your brain might explode just thinking about it. So how can you win a home with the market looking like this?
My guidance for multiple offer situations:
Dont ask for things, but give instead.
Give: a free lease back.
Dont ask for: a long option period, closing cost credit, up front repairs, or a home warranty credit.
How to make your offer the strongest:
0 day option period, which means, you buy the house as is.
Avoid any types of contingencies. No financing contingency.
Waive your right to terminate if the home doesnt appraise.
Use a local lender or purchase cash.
If requesting an option period, select 5 or less days.
Buyer will pay for the owners title policy.
Offer a quick close.
Offer 5% to 12% above asking price (or wherever you feel most comfortable).
So what does all this mean for you? This might mean something different to everyone reading this, but it means that if you want to purchase a home in The Woodlands right now, you have to be extremely aggressive, patient, and realistic. It might mean you purchase on the edge of The Woodlands where things are a little less competitive. It might mean that you only look at homes sitting on the market, which means that might have flaws. It might mean you have to save a little more money to cover any appraisal gaps. What this doesnt mean is that you wait or that you rent. I really believe you are leaving 50,000 to 150,000 on the table if you wait one year to purchase. And I do want to stress that the excessive over asking price offers situation is a new thing in The Woodlands real estate market, but dont worry, Im buckled up!
And to compare this to the month prior... It doesnt compare. There was one home that went almost 100k over asking price, but that was an underpriced home to begin with. But the month prior, most homes went 5k - 25k over asking price. What you are seeing in February (aka RIGHT NOW) was not present 30 days ago! Here is a link to that data. And I do want to mention, that the numbers arent as crazy on the outskirts. For example, in Klein, numbers are just 5 - 15k (sometimes 20k - 30k) above asking price.
What to read next?
How much money am I really wasting if I rent for a year? Link.
Signs You Have Hired the Wrong Real Estate Agent Link.
If you are looking to buy or sell in The Woodlands, please reach out to me. I love sharing my area knowledge and market knowledge with all!
And thank you for trusting us. It is so important to me (Jordan), to not just be your REALTOR®, but your resource. It is truly a goal of mine, heck, a priority of mine, to help you plan your roots in the right soil. I don’t want you to have any regrets on where you buy a home, so it is my mission to be there for you.
We are a real estate brokerage founded by Jordan Marie Schilleci servicing the North Houston Suburbs: The Woodlands, Spring, Klein, Tomball, Magnolia, Conroe, Lake Conroe, Montgomery, Katy, Cypress, Kingwood, and Champion Forest.