Texas real estate agent David M. Zuckerman said he expects the sale price to reach $200 to $300,000, depending on the buyer’s willingness to sell.
He said he has never seen such a sale in the Houston area, but it could be a different story in the Austin area, where he’s seen several homes go for a lot less.
“I think a lot of it has to do with what buyers are looking for,” he said.
“I’ve seen it in Austin where buyers are trying to get a little bit more.
And I’ve seen prices go down because buyers are really willing to wait.”
“It’s not uncommon for a home to sell for $300 to $400,000,” he added.
“But I think if you have buyers who are looking to buy a house that they’re willing to pay $300 or $400 or $500 for, then you might see some bidding wars.”
Bidding wars are common in Houston real estate and they are happening on a larger scale than usual.
Some buyers are buying to take advantage of the rising prices.
A Houston-area home in the $250,000 to $275,000 range sold for $225,000 earlier this year.
The price for a house in the same price range as the sale could reach $250 to $280,000 if the buyer is willing to spend up to $2.5 million to buy it.
There’s no need to panic, though.
Zuckerman has seen his clients take a few steps to protect their value.
He said he would always recommend the buyer to make sure he has the proper insurance.
If he’s looking for a buyer, Zucker said he’d ask for a deposit to cover the upfront costs, but he also would take out a loan to cover all the costs.
But if the seller doesn’t have the money to pay the deposit upfront, Zucker said he can help him out by paying for a down payment on the home.
He also said that if the house is a little pricey, the buyer should ask for the sale to be postponed.
When the seller makes a deposit, the next step is for the buyer and Zuckermans agent to go through a financial analysis to find out if the sale is viable and if they have enough money to buy the home at the current price.
Once they have the financial analysis, Zankerman said the seller should get a title insurance policy, which protects against a home collapse, to protect the buyer from the loss of their home.