The 2021 market has started out exactly as analysts thought: spicy hot. We had the usual New Years hangover which lasted all of 10 days, and then we were back in action. I had the luck to pick up a couple of investment properties in Oak Cliff. One of them got 17 offers in less than 48 hours and will close so far above list price that I don’t see how it will be a viable investment. But hey, I will never be a man who objects to giving me more money that I’m expecting.
With every selling season and all its nuances, new truths emerge. We live in a rapidly escalating market, but buyers with very high expectations for their purchases. Now add to that incredibly low interest rates. What do you think this would mean and who would it best serve? I had a listing about a year ago. Great house. It was priced about $100,000 below the top-of-the-market, but needed about $80,000 in updates. It made sense to us that building in a little discount would entice buyers to make the investment. It was in a great north Dallas neighborhood, had an amazing backyard living space, and well over 3,000 sqft. It had been updated in the early 2000’s with travertine/granite/2000s colors (which were tired), and the master bathroom (massive as it was) was still very 70s. We put it on the market at $600,000 and got 5 showings in the first few days. After 4 months we had had a TOTAL of 10 showings and no offers.
“But John, you elegant yet knavish truth-sayer,” I hear you ask, “whatever is the point of this captivating story?” Well, dear reader, the answer is people are willing to pay a premium on low-interest borrowed money for a completely updated property. It makes sense considering the odds of them paying off a 30 or 15-year mortgage are rather low. The losers in this scenario are houses like my listing. I’m trying to get the owners to spend the necessary money to bring it up to expectations, but it’s an uphill battle. If only people would spend their money like I want them to, things would be so much easier.