What happened in February 2022 in The Woodlands real estate market?

Hi sweet friend,

I wanted to do a little research for you. Today I am focusing on what sold in the last month in The Woodlands that was listed and went under contract in 7 days or less. These are going to be those move in ready homes. The ones that sell themselves in what feels to be "overnight".

Fifty-nine homes were listed and under contract in one week or less here in The Woodlands. Of those 59, 45 sold over asking price, 7 sold at list price, and 7 sold below asking price with all homes between the range of the 96% of the list price - 116% of the list price. (To make this February post, I gathered data from the last 33 days. And keep in mind this activity is really driven from the month of January, when most of these went under contract.)

If you want to see exactly what a home sold for, please click this link to become connected with me on the har.com app. Curious how much over the listing price the top 11 homes sold for? I have included those below with links...

18 Trailhead Place, in Cochran's Crossing, sold for $56,500 over list price! - https://www.har.com/s/594659581B2
66 N Country Gate Circle, in Windsor Hills, sold for $44,000 over list price! - https://www.har.com/s/f42cDAEDe5cf
11 Crested Cloud Court, in Grogan's Mill, sold for $40,000 over list price! - https://www.har.com/s/8185750023dE55
135 Little Mill Place, in Alden Bridge, sold for $59,750 over list price! - https://www.har.com/s/A9a0f85C1ffDEc
10 Archbriar Place, in Alden Bridge, sold for $58,500 over list price! - https://www.har.com/s/a2053f89ce4C3
18 W Broken Oak Court, in Panther Creek, sold for $58,500 over list price! - https://www.har.com/s/8682c8107
18 S Oriel Oaks Circle, in Sterling Ridge, sold for $60,000 over list price! - https://www.har.com/s/16E084A459
75 S Hawthorne Hollow Circle, in Alden Bridge, sold for $42,400 over list price! - https://www.har.com/s/cc393236edC
95 E Morning Cloud Circle, in Cochran's Crossing, sold for $51,000 over list price! - https://www.har.com/s/a5ce4777c4Ee
11 Weeping Spruce Place, in Alden Bridge, sold for $40,000 over list price! - https://www.har.com/s/3674a6c9c6F0C
23 Chestnut Hill Court, in Grogan's Mill, sold for $80,000 over list price! - https://www.har.com/s/44ba298d4b

Through that same research, I gathered:

Homes at or below $300,000 sold for $10,000 - $39,000 over asking price.
Homes above $300,000 and below $400,000 sold for $5,000 - $57,000 over asking price.
Homes above $400,000 and below $500,000 sold for $5,000 - $43,000 over asking price.
Homes at $500,000 to $700,000 sold for $6,000 - $60,000 over asking price.
Homes between $700,000 and $999,000 sold for $20,000 - $65,000 over asking price.
Homes over $1,000,000 sold for $50,000 to $80,000 over asking price.

Now keep in mind, these are only the most desirable homes that received multiple offers. There were also 67 other homes on the market. To see all data points I used for this blog post, click this link. But it is pretty safe to say most homes coming onto the market right now, so the pending homes, over 60% go under contract in less than a week. I want to also point out that there are only 74 active homes on the market right now with only 24 of those homes coming onto the market this last week, and there are 148 pending homes.

Year to date (I stopped on the 20th of February), 161 homes have sold so far this year in The Woodlands, but this time last year 225. What does this mean? Inventory is down. Couple this with how high the demand is and your brain might explode just thinking about it. So how can you win a home with the market looking like this?

My guidance for multiple offer situations:

Don't ask for things, but give instead.
Give: a free lease back.
Don't ask for: a long option period, closing cost credit, up front repairs, or a home warranty credit.
How to make your offer the strongest:
0 day option period, which means, you buy the house "as is".
Avoid any types of contingencies. No financing contingency.
Waive your right to terminate if the home doesn't appraise.
Use a local lender or purchase cash.
If requesting an option period, select 5 or less days.
Buyer will pay for the owners title policy.
Offer a quick close.
Offer 5% to 12% above asking price (or wherever you feel most comfortable).

So what does all this mean for you? This might mean something different to everyone reading this, but it means that if you want to purchase a home in The Woodlands right now, you have to be extremely aggressive, patient, and realistic. It might mean you purchase on the edge of The Woodlands where things are a little less competitive. It might mean that you only look at homes sitting on the market, which means that might have flaws. It might mean you have to save a little more money to cover any appraisal gaps. What this doesn't mean is that you wait or that you rent. I really believe you are leaving $50,000 to $150,000 on the table if you wait one year to purchase. And I do want to stress that the excessive over asking price offers situation is a new thing in The Woodlands real estate market, but don't worry, I'm buckled up!

And to compare this to the month prior... It doesn't compare. There was one home that went almost $100k over asking price, but that was an underpriced home to begin with. But the month prior, most homes went $5k - $25k over asking price. What you are seeing in February (aka RIGHT NOW) was not present 30 days ago! Here is a link to that data. And I do want to mention, that the numbers aren't as crazy on the outskirts. For example, in Klein, numbers are just $5 - $15k (sometimes $20k - $30k) above asking price.

What to read next?

How much money am I really wasting if I rent for a year? | Link.
Signs You Have Hired the Wrong Real Estate Agent | Link.

If you are looking to buy or sell in The Woodlands, please reach out to me. I love sharing my area knowledge and market knowledge with all!

Next Step

Call or text me at 832-493-6685 to get started!

And thank you for trusting us. It is so important to me (Jordan), to not just be your REALTOR®, but your resource. It is truly a goal of mine, heck, a priority of mine, to help you plan your roots in the right soil. I don’t want you to have any regrets on where you buy a home, so it is my mission to be there for you.

Most people struggle with the home buying experience. We are a brokerage that does more, by being with you every step of the way, so that you plan your roots in the right soil.

I know that there are so many to choose from in the Houston area, and I know there is one that perfectly fits your needs. If you need help navigating, please reach out to me by scheduling a call or sending me an email. Two other amazing resources are this blog and our YouTube Channel. And when you are ready, I hope to being a part of your next chapter, Jo.

We are so happy you found our little corner of the interwebs. We look forward to y'all reaching out to us. We love to answer questions and welcome them. Recently we created some local maps, and you can download those by clicking the image/link above. Below, you will find an index of some very helpful information to assist you in learning more about the Houston suburbs. If you are relocating to our neck of the woods, we hope you reach out to us, because we would love to help you by being your local realtor and friend. Thoughtfully written for you. Hugs, Jo.

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If you are overwhelmed..

Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: http://byjoandco.com/call or just send us an email: jordan@byjoandco.com. There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! Thank you for trusting us.