How to Sell Even in a Cooling Housing Market – NBC 5 Dallas-Fort Worth

Wednesday’s interest rate hike, the fourth issued to fight inflation, continues to impact the housing market, even in North Texas.

A DFW real estate agent said buyers are more cautious, fearing they won’t be able to afford to buy.

The average 30-year mortgage rate has already topped 7% for the first time in two decades, according to mortgage giant Freddie Mac.

Michele Wood and her husband are ready to retire to Arkansas if they could just sell their home in Denton.

“I wished we had done this in August because our house would probably have been sold by then,” Wood said.

Their three-bedroom, two-bathroom home tucked away on White Dove Lane has been on the market for 27 days.

There have been interested buyers, including two competing cash offers that have been requested, but still no deal reached.

“Yeah, that surprised me a bit, but the right buyer is out there,” said real estate agent Joanne Condi, of Remax DFW Associates in Frisco.

Condi said the scorching North Texas real estate market was cooling after a strong summer with low interest rates and competition driving up prices.

“In places like Coppell, if I had an open house there, I would have 30 couples lined up,” Condi said.

These days, only a handful of potential buyers show up at open houses.

Sellers and buyers now have to deal with rising interest rates, fewer visits and more inventory.

“I think we have to get used to interest rates in the 7-8% range,” Condi said.

Condi said inventory in and around Denton now stands at two months, but does not expect North Texas to see six months of inventory, which would signal balanced housing marking for sellers and buyers.

House prices are falling.

“Krum, which is just north of here, has started to lower its prices,” she said. “Frisco also continued to lower prices.”

Some sellers are also turning to dealerships again.

Wood is willing to give his buyer $3,000 which can be applied towards closing costs or if the buyer chooses to request “point redemptions” to help lower his interest rate.

“It’s a little pricey. It can cost anywhere from $1,000 to $2,000, sometimes depending on the buyer’s credit rating and how much they’re down payment,” Condi said of the buybacks. “There are lenders who even do a two-point buyout and can reduce it to 5%. So for the first year you could have it at 5.5%, the second year of your mortgage it can be 6.5%, then the third year is going to go back to what your mortgage locked in.”

Condi advises potential sellers to seek out an experienced real estate agent first.

“Don’t go and do $50-60,000 upgrades before you’ve even called the real estate agent because you might not get all that money back,” she said.

Be patient, but be prepared, Wood urged.

“Keep your house ready at all times for when someone says, I would like to come,” Wood said. ” Absolutely ! Come right now. I am ready for you.

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