Episode 62, Segment 2: Current Market Expectations in Austin
John Schutze & Andrew Thurston were excited to welcome guest real estate agent Daniel Topolski of Culhane Properties to talk about market expectations in Austin right now.
"Expectations are more important than ever," Daniel says. "Austin flip-flops back and forth with other Texas markets in being the 'hot market'. Everyone knows the market is good, but there is a downside to a good market, too."
What are the downsides of this hot market?
"Gone are the days where you just casually meet up with a realtor, you don't have your financing in place and you just drive around on a weekend and browse homes," Daniel says. "I hate to sound aggressive, but it's a battle plan now - you need to be prepared and have a detailed list and have all your ducks in a row."
"Realtors are trying to make sure the seller has a smooth process too," John says. "If the lender is off track and the closing gets delayed, that can really affect the seller's plans too, so they rely on a lender that has a good reputation."
"Seller's agents have a lot riding on the deal as well," Andrew adds.
"It's key to talk to a local mortgage banker," Daniel emphasized. "Knowing these timelines and knowing this market is key. You need a professional in your corner."
"We're now in a seller's market so the demand is super high and the supply is super low, and we're having a hard time catching up with so many people moving to Austin," Daniel says.
You're not overpaying, even in a hot market
"We're at 2.1 months' worth of inventory right now. Though just because it's a seller's market doesn't mean you're overpaying for a property- things are going for market value, but when you look at the asking price in the state of Texas, 37% of people have paid asking price but 48% actually paid below asking price," Daniel says. "Believe it or not, you're not overpaying - and the market is appreciating, so if you're buying in a good neighborhood and a good house, you're gonna come out ahead."
If you're a first-time homebuyer or new to town, what's the first step?
If you're new here or a first time buyer, I can't stress enough that a mortgage pre-approval is key. A solid mortgage pre-approval is absolutely necessary, because it's like having cash in your pocket when you're out with an agent," Daniel explains.
"The next step, of course, is speaking to a realtor and letting him/her know what you're looking for - again, gone are the days when you can browse casually. The internet is a great tool to initially browse, but once you're ready to go, you should get in contact with a realtor."