Waco Inventory UPDATE

[Trevor Caswell]

Good afternoon BP investors,

Here is a quick update for those of you who are trying to invest in Waco this spring. There are currently less than 300 homes listed in our Waco area MLS. Homes are being sold above asking in under a day after being listed. What does this mean to those who are interested in this area?

1.) Be Realistic | Please get creative with your financing and really work your numbers. I have found that a lot of buyers are making emotional decisions and jumping onto every house that hits the market just to lock one in. Their hastiness has lead to putting more money down and creating smaller margins for themselves. 

2.) Be Patient | We are experiencing historical lows in our housing inventory. So please don't be surprised if your agent isn't sending you a ton of listings. Many of us are busy door knocking and seeking out sellers with the rest of you hustlers. 

3.) Do your Research | I have seen some out of state investors posting about Waco, Dallas, and Austin as being great cities to invest in recently. I can assure you that a lot of these statements are being written as headlines when they should be disclaimers. 

Due your homework and call a local realtor in these cities. Listen to the stress in their voice as they describe to you their latest offer of $20,000 over asking price being rejected. 

Here's a disclaimer and not a headline: Out of state buyers are purchasing homes in our area with cash, sight unseen, and waiving the option period. Think about how crazy that is. Do you really want to compete with that? You'll likely end up making a poor financial decision. If you feel so strongly about a home that you are willing to make irrational decisions like that, please read some of these forums about "rookie mistakes" and enlighten yourself on the term due diligence. 

[Trevor Caswell]

@Bennett Rehmert 

We are seeing a major slowdown in the buyer pool. The rate hikes have put a damper on the market here. There are occasional bidding wars still, but I chalk that up to inventory issues. The areas you are seeing the most slow down is on Homes $450,000+ on land in the surrounding Waco areas. Last year, they barely lasted a few days. Now, we're seeing bigger homes in the more expensive categories start to sit and price drop. Houses are continuing to come on the market as expected, but now they're starting to sit a little bit longer which is building up our inventory again.