The Greater Fort Worth Association of Realtors released the May 2017 Fort Worth Housing Report this week. Fort Worth home sales raised 5.6 percent to 1,174 homes in May 2017. The median price for Fort Worth homes increased 12.8 percent year-over-year to $211,000 in May 2017.
Fort Worth’s monthly housing inventory was 2.0 months in May 2017, 0.2 months less than the year prior. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes are balanced.
Homes spent an average of 59 days on the market in May 2017, five days less than January 2016. Additionally, active listings increased 12 percent to 1,994 listings during the same time frame.
May 2017 Statistics At-A-Glance
1,174 – Homes sold in May 2017, 5.6 percent more than May 2016.
$211,000 – Median price in May 2017, 12.8 percent more than May 2016.
2.0 – Monthly housing inventory in May 2017, 0.2 months less than May 2016.
59 – Average number of days homes spent on the market in May 2017, five days less than May 2016.
1,994 – Active home listings on the market in May 2017, 12 percent more than May 2016.
I recently talked about the continued population growth in the Dallas/Fort Worth area (click here to read the full article). Well, guess what…we’re still on fire, and with an expectation of continued growth, DFW is a rental property owner’s dream come true. Nowadays I’ve been hearing that most potential purchasers are finding it close to impossible to pick up properties at a reasonable price—between such high competition and record low inventory, sellers definitely seem to have the upper hand…so, is there any hope for investors to pick up a property and still make a profit?
I have great news for all of our wonderful Red Team clients, the answer is YES! And we’re not holding anything back…we’re showing you all four Aces!
Aside from your offer price, there are several other factors that can make or break your next purchase. Even if you don’t come in with the highest dollar offer, there are a few other things that can land you the deal. Here are 4 ways that will give you, the purchaser an upper-hand, ensuring your offer makes a real impact:
Option period: A shorter option period tells the seller that you are serious about the purchase and are ready to move quickly and efficiently throughout the process. Sellers can be hesitant about longer option periods in this market because if your offer falls through, they’ll be stuck waiting much longer to move on to the next.
Financing:Having your Pre-Approval in advance, from a lender who understands this business makes a huge difference–it shows a seller that you are organized and you will follow through with what you say.
Option Dollars:As a serious buyer, offering option dollars could also be a way for a seller to see your offer as more appealing, even if you aren’t one of the highest offerers. Sellers tend to see you as more serious if your Option Money is on the higher end, as you must believe, as well as the seller, that you are more likely to close the deal.
Cash:The old saying that Cash is King has not gone away. A cash offer sometimes will make the difference on a deal even when it is significantly lower than the asking price. Cash deals usually mean a quicker close and that the seller will have the money sooner. Note:Even if you are a buyer that is financing, the amount of cash you put down (% of purchase) can impress a seller on how serious and how strong of a buyer you are.
If you’re ready to start making money in this hot market, it really comes down to how well positioned you are coming into an offer. Red Team Real Estate has a proven track record of giving their clients the leverage needed to make the deal and make the money. If you’re considering a new purchase, we invite you to give us a call and speak with one of our experienced agents today.
Red Team Real Estate and Property Management Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.
As landlords and investors it’s inevitable that we’ll run into some major repairs along the way. But what we may not plan on is losing time and money on vacancies because of unscrupulous contractors and repairmen.
Red Team has been in the business long enough to recognize quality workmanship when we see it. If you have any foundation and/or water problems, Foundation Resolutions, LLC is the team for you. Integrity in this industry is hard to come by – Foundation Resolutions is a great option!
Founder of Red Team Property Management and Educational Entrepreneur, Michael Mayes is impassioned about raising the bar of greatness by cultivating your understanding in all areas of property and real estate.
There are plenty of Guru’s out there that want to sell you their secrets, claiming they can fill your vacancies in less than thirty days. And while they may have some valuable tips, not all of these experts will talk to you about how to discern a good tenant from a bad one, a responsible tenant from an irresponsible one, and a non-paying tenant from a paying one.
“A set of voodoo candles used in a “good luck” ritual sets off a massive fire, killing one woman and left 47 families homeless. Fire officials say the early evening blaze could have easily been contained had the occupants of the apartment called 911 instead of trying to put it out by themselves”. This story is not made up for entertainment, but an actual story of what a real estate investor went through.
Although things may get tight when you have vacancies, things could get even worse if you choose the wrong tenant – getting your property rented to a properly qualified tenant should be your main priority. If you do not have the time or resources to properly screen potential tenants, locate a reputable property manager – this is what they do for a living! The stress and headache that often accompany the landlord job can be reduced. One effective solution is the screening process.
Whether by phone or email, your first contact with the tenant begins the screening process. Asking the right questions can help you decide how you should proceed.
Advise potential tenants of your up-front rent and security deposit requirements, and any other important facts regarding the rental that may change their interest in your property.
Draft a list of specific questions to ask.
Always have a detailed application. I recommend collecting a screening fee and running a background report to weed out prospects that might be ineligible based on your criteria. Review and verify the application thoroughly and look for inconsistencies and red flags.
It is very important that you have a quality residential lease. Make sure your lease covers all seen and unforeseen scenarios. Read the entire lease agreement with the tenants at signing to ensure they understand all contingencies.
Getting your property rented is important but here are the variables you might be missing. If you’re looking to make the most of your investment, avoid costly mistakes and enjoy more freedom, we invite you to connect with the team at Red Team Property Management. We work for our owners focused on creating value. This means getting the best rent as the market continues to change. Also, this means fostering the right tenant fit so that you have as little vacancy time as possible.
Best Rents + Great Tenant Fits = VALUE!
Educating for REAL Greatness,
Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.