Skip to main content

Frisco Buyer/Seller Guide - Buyers are turning up their noses at over-hyped home prices

 Everything has changed in real estate over the past 3 months.  So how have the rising interest rates affected the buying and selling of homes in Frisco, Texas?







The GREEN LINE is the number of sales in each price range.  Most sales are happening in the 400k to 600k range.  That makes sense, as the majority of homes are in that price range.  But let's go one step further... How long did it take for those sellers to find buyers?







The BLUE LINE is the Cumulative Days On Market, or CDOM.  It's great to see that all these homes were sold, but that doesn't tell how long it took for these sales to happen.  In a healthy market, the CDOM needs to be in the 15-30 day range.  In the 400-600k price range (the busiest), it took an average of 38 days to find a buyer.  Oh my.


Let's break down what's happening in Frisco price ranges.


$350-400k

The 20 or so sales took about 41 days to sell (on average).  What's driving this is more about the condition of these properties than the number of buyers willing to purchase in this price range.  The majority of these homes were NOT MOVE-IN READY and overpriced. So negotiations have to happen in order to find the right price/true value for each of these homes.  Buyers are choosing to either wait until pricing becomes more realistic OR purchase in other cities where the "hype value" from the past years of low-interest rates is much lower.   Buyer's Win this price range.  The real winners will be the rental investors who will get a nice discount on these income-producing properties that need renovations/repairs, so they can reap the rewards of the high rental rates in Frisco for years to come.  


$400-500k

About 90 homes sold in around 39 days on market (average).  After a new listing has been on the market for 30 days, sellers realize that they will have to drastically drop their price to attract a buyer.    That is what is happening here.  Buyers have the leverage and sellers are willing to sweeten the deal in many ways beyond a discount.  Did you know that sellers are allowed to pay money towards reducing the interest rate on your mortgage?  This and MORE are on the table for negotiation to get you to buy their home.  I would love to talk with you more about how to make these negotiations work for you.  This price range? It's a BUYER'S Market, but wait another 3-4 weeks for more discounts.  The desperate sellers who have decided to keep their homes on the market for December will set NEW LOWS as they further reduce their list prices to find buyers.  


$500-600k

Almost 100 homes sold in about 37 days on market.  These buyers took advantage of the opportunity to own a home in Frisco without having to overpay/compete with other buyers.  This is the healthiest price range due to all of the OVER $600k homes that reduced their prices to find buyers in the $500-600k range.  For instance, homes (with lovely amenities) that sold for $630,000 several months ago are now only $590,000.  It's refreshing to be a buyer now in Frisco, wielding your buying power to not only be able to purchase a home BUT actually get a good deal!  The past seller's market has shaped how we currently see these discounts.  It's a Super Buyer's Market in one of the most sought-after cities in DFW!


$600-800k

About 164 homes sold, but it took them almost 40 days to find buyers (on average).  The only homes sold WITHOUT HUGE DISCOUNTS in this price range are the beautiful properties that win the beauty contest among available homes on the market.  Truly amazing homes are mostly immune from high-interest rates and crazy markets, because they are RARE.  In a red-hot market, they sell for list price plus 5-15% so at least buyers now have a chance to own these dream homes for an honest price.  For the REST of the homes out there, it's a battle to capture a buyer.    It's a SUPER BUYER'S Market.



Advice for Sellers:

All of this is temporary.  Right now there are more homes for sale than there are buyers, but the balance isn't so bad that it would cause anything to tip over.  If you are a seller above 600k, count on selling at a 5-10% discount or more unless you have a truly exemplary home to sell.  It only takes three buyers to establish real estate values in a neighborhood.  So look around at the homes being sold around you.  These are your greatest indicators as to whether your values will stay steady or lose value incrementally.   The problem is that most sellers are in scramble mode to find a buyer, so they betray others' homes values to quickly cash out.  If you must sell, let's talk about options to convert the home to a rental until interest rates lower.  There is a wise decision to be made here, so let's review all of your options to avoid having regrets.  IF you have to sell, there are some hidden strategies for attracting buyers to your home that most other sellers (or their agents) have no clue about (hint: it's what attracts people to buy a new home).


Advice for Buyers:

Temporarily, you have the leverage.  It may not last quite as long as most reporters of "doom and gloom" are reporting (about a recession in 2023).  While I may not know the immediate economic future, I do know that the Texas economy and our real estate values are surprisingly strong in the middle of the market, where most buyers/sellers meet to do business.  For Frisco, this is the 400k to 600k range.  For the moment, the number of buyers in the market has reduced so much that there are too many homes available.  This means that buyers are getting steep discounts, interest rate reductions, upgrades and much more than they would otherwise.  At higher price ranges, it's a good idea to wait another 3-4 weeks for pricing to recede further before buying.  As your real estate guide, I would love to answer your toughest questions about how to proceed and give you a customized, step-by-step plan to finally have the home of your dreams.  


In as little as 15 minutes, you can get answers to your real questions...

Book a Call with me today!


Thank you for taking the time to read through this real estate guide for homes in the city of Frisco, Texas.  Use this info to get a general idea of what's going on over the past 90 days, and reach out to me at timothy@timothyhenley to start talking specifics related to you buying or selling a home.  Great info is more valuable than gold or silver, and will free you up to see the next steps towards living your new life.  Whatever that looks like!

Your Real Estate Guide for Life,


Timothy Henley

Texas Broker

License #572885


PS... Here is a link to my PREVIOUS report on Frisco home values.  Published in August, it shows the roller coaster that each of these price ranges have been through.

Comments

Popular posts from this blog

One-Time Close Construction Loans with Super Small Down Payments!

Have you ever DREAMED of building a Custom Home but assumed it would require a large down payment? A Home Designed to Fit You & Your Budget...  Build Your Dream Home NOW! Finally regular buyers can get a truly custom home because of low down payment, one-time close construction loans!  Find that perfect piece of land in the perfect location, design your Custom Perfect home and then wrap it all into one easy loan product! For far too long, buyers with only 3-5% to put down have had to settle for pre-existing floor plans or homes.  Why compromise on the place where you spend so much of your life?  NOW you can design your new home exactly the way you want it... YOUR Style & Design with all the floor plan, layout, features and amenities that fit How You Do Life ! Your Own Custom Perfect Spaces! What will you put in YOUR Custom Home? Master retreats, kitchens straight out of Pinterest or HGTV! Guest houses for an aging parent . Separate spaces for

Crazy Like a Fox.... Buy Your Next Home BEFORE Selling?

Imagine a world where you purchase your next home, THEN get up to 6 months to sell your current one...   That's right! On this planet, there is no selling then buying stress.  You don't have to feverishly search for your next home AFTER accepting an offer on your current one.   Sounds rough?  Just ask anyone who has done it! Skeptical?  I would be too! If you never heard of this before, it's called a portfolio loan.  They come in many shapes & sizes, but this loan type allows a buyer to be payment free for up to 6 months on their next home .  It's only available through the normal Fannie Mae conventional loan (sorry, no FHA/VA or USDA) and is structured so payments on your next home start AFTER your sell your old home.  This gives our clients the ability to have their cake and eat it too!  Carefully choose your new home and complete the purchase process... Then take your time moving out and selling your existing home.  THIS is how you transition from one h

Mckinney! Don't believe the news! Your Home Values are NOT evaporating.

 If  you have a home in McKinney , you want the latest info on whether you get to Keep Your Money from the last few years' upswing in home values.    Here is the info that you need to know. Past 90 Days Sales sorted by Price Range The best way to tell if your home is gaining in value or losing value is to see WHAT PRICE RANGES are most active.   The peak of buyer activity is in the 400-500k range , with the 500-600k range coming in second.  Coming in at 3rd place is 350-400k range. The next chart will tell you the Health Report of each Price Range , by looking at Days On Market (DOM) to  see which price ranges sold the quickest. The DOM is the blue line , with the average Days on Market scale on the right side of the chart. By combining both data points, we can determine which price ranges are MOST HEALTHY and least healthy.     Not sure what  your home would sell for  in this market?   Just schedule a quick conversation HERE so you can kno w now. Price Range Health Report 200-300k