Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
We've felt a shift in our markets over the last several weeks but never as strongly as this past week. Here are some of the deals we did (1 is personal, the others are for my clients)
-Seller Financed Quadplex, 20% down, 6.5% interest. Turnkey. Fully Occupied. "A" grade location. San Antonio TX
-Luxury Airbnb, listed for 1.2M. original offer of $925k rejected. settled at $950k. Cedar Park TX
-Cashflowing Duplex listed for 230k, offer accepted at 215k. Dallas TX
-Househack, 3.5% down FHA financing, listed for 800k, under contract for 790k and 20k concession from seller. Austin TX
-Househack, duplex listed for 235k, under contract for 230k and $3500 in concessions *before inspections*. San Antonio TX
-5 bedroom, 3200sqft househack/ Rent By The Room purchased with a VA loan at list price. Austin TX
-A listing agent and a builder called me asking if I had buyers for them. (not technically a deal, but still notable)
NONE of these deals would have been possible 2 months ago. Looking forward to getting househackers back in the game!
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y
@Victor Steffen, I don't have my foot in the Austin market, but it's interesting to see that deals are going for under asking now. Were your listings priced at market value? Most notably the duplex deal that went for 15k below asking. In my market, small multifamily properties are still receiving cash offers of 20-30k over asking. Thanks for the insight.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y
@Victor Steffen, I don't have my foot in the Austin market, but it's interesting to see that deals are going for under asking now. Were your listings priced at market value? Most notably the duplex deal that went for 15k below asking. In my market, small multifamily properties are still receiving cash offers of 20-30k over asking. Thanks for the insight.
Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
4y
Hey michael- we are still seeing a lot of properties move above list in DFW, austin and san antonio. These 6 new contracts were the result of almost 40 offers submitted.
Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
4y
I operate in Blue Ridge, Georgia with STR investors and in Alpharetta and Cumming area with long term rental investors. Both markets have also seen noticeable shifts over the last couple of weeks. Things are moving slower, sellers are spooked, and better terms are out there to be found by buyers.
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Victor Steffen thanks for the specifics! Despite the reductions, I am assuming the purchase prices are still substantially above what they would have been 5 and probably even 2 years ago - is that accurate? Like the Austin househack under contract for $790k - probably a great deal for the buyer, but still seems high!
In my market, I'm seeing a slowdown in that overpriced properties are now sitting... but I'm still not quite seeing a big shift or major reductions.
Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
4y
@Nicholas L. you're absolutely right. Prices today are ~20% above where they were even 12 months ago. The market shift hasn't started to impact prices yet (will it ever?) but it has impacted what terms sellers are willing to accept and that has made a huge difference in who can connect on deals.
Real Estate Agent · Tucson, AZ · Member since 2020 · 104 posts · 64 votes
4y
I must also say that we are seeing small multifamily listings here in Tucson, AZ start having price reductions before they ever get an offer. It's definitely starting to shift ;)
Real Estate Broker · Dalton, GA · Member since 2010 · 244 posts · 35 votes
4y
@Connor Cushman - is the shift still happening or has it gotten a little hotter since this post? I am an agent in the Dalton area but keep my eyes and ears open along that 515 corridor. Would love to hear your thoughts. If you want to get together for coffee, I'm not scared to drive to Cumming! :)