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Are homes selling in San Antonio, TX?
Is it a good time to sell in San Antonio, TX? A lot of my past clients are asking me is it is a good time to sell in San Antonio, TX. The only answer I have is another question: Why do you need to sell your home here in the San Antonio area? If you are selling a home hear in San Antonio, Boerne, Helotes, Converse, Schertz, Cibolo, Alamo Heights or Universal City, then you have to take advantage of the buying market as well. The Market Forecast for San Antonio, TX 2007 A market forecast for San Antonio was given to my office that stated we as a whole (San Antonio and surrounding areas) appreciated at about 8% in 2007. This means unlike the rest of the US, San Antonio is still one of the strongest markets in the country. What we are seeing is a "hit" in concessions to sell a home. Concessions are the natural costs to sell a home. These costs may be and are not limited to: commissions, home warranties, buyer closing cost assistance, surveys, title policy, renovations, repairs, pre-inspections, pre-appraisals, etc. New home builders are feeling a dramatic drop in sales from the years past. They still have a tremendous amount of inventory and land. What they are doing to subsidize this loss is they are giving away a record amount of "incentives" to buyers who will build on their land or buy pre-existing inventory homes. "Incentives" are just what they sound like. They are bonuses or concessions to entice buyers to build or buy. I have 6 listing from a local/national builder that is giving away an average of $17,000 in incentives with an average home listed amount of about $170,000. That is roughly a 10% incentive for every buyer. Because we have to compete with these builders in the pre-existing market, we as sellers also have to take into account our own concessions/incentives to sell our homes.
How to take advantage of the market. If you are going to sell you are going to take a hit on the sale of your home but you can make it up in one of two ways. One you can buy an inventory home or build on a lot from a builder that has at least two to three times the incentives that you are giving away. Or two, buy another bigger more expensive pre-existing home in a better neighborhood that should be giving away the same percentage of concessions that you are.
Let me give you a couple of examples: I had a client that sold his house for $114,500. It appraised at $120,000. He bought a pre-existing home for $189,000 that appraised for $201,000. Percentage wise he got the same deal that the buyers of his home got. He just made more money because he was buying bigger. The second example is with a new home buy. Another client of mine is building a brand new home with $6,000 in upgrades and a guaranteed fixed rate of 4.99%. They are going to probably end up selling their for about $155,000 but is really worth $160,000. They make up the difference but aquire an outstanding interest rate in return.
All in all. If you are buying and buying a bigger more expensive home you win!! For more info on how to take advantage of this shifting market call me direct at 210-367-6024.
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