Did You "Overpay" For Your Home?

$117 Million Closed and in Title Year to Date

Since our last activity report 13 days ago, we've closed on $12 Million, placed three homes in title and acquired several more listings. We can't disclose the new listings quite yet but we'll announce them as soon as we can. We also have some "pocket listings" north of $2 Million we can tell you about if you give any of our agents a call.

Although we aren't seeing the 15 to 20 offers on homes which was common earlier this year, several of our listings went into title from 4-9 days of hitting the MLS, and one never even made it to the MLS before going under contract. The buyers are out there but they're looking for reasonably priced and well cared for homes.

Did You Overpay For Your Home Earlier This Year?

Now that home prices have stabilized, I would imagine there are some people wondering if they "overpaid" by buying earlier in the year during the buying frenzy. Maybe they were the highest bidder in a multiple offer situation. Or the home didn't appraise. The comparables didn't support what they paid for it.

When someone asks me if they overpaid I'll ask them one question ... "How long are you planning on staying in your home?" If they say 4-5 years, I tell them they're perfectly fine. The market will catch up to them.

I can absolutely guarantee there are people who thought they overpaid on their home 4-5 years ago and did very, very well selling this year.

To some extent I don't believe there's such a thing as "overpaying" over a 5 year cycle in a dynamic real estate market like the Collin County. People are moving here in droves, especially from the east and west coasts and that's not going to change. If anything, the migration to Texas will become more prolific.

If you bought earlier this year and paid well over what the comparables and appraisals supported at the time, you probably did it because the home worked for you, there was a lot of competition, there weren't a lot of options, and you needed a home for your family. Those are all good reasons.

Everyone knew the craziness wouldn't last forever but none of us knew when it would turn. By May we had already started to see a slowdown and that's when we usually experience an uptick in our business. So we sure didn't know it had already started to shift.

If you're upside down (with comparables anyway) my suggestion is just enjoy your home and don't sell until the market catches up again. It absolutely will.