Bidding Wars in Texas has Created New Language…

Mary Davis from Realty Professionals of Texas Answered on April 29,2021

Recently Texas Realtors® has revised yet another form to be more inline with today’s competitive markets. In form 1506, General Information and Notice to Buyers and Sellers, new language has been added to explain how the price and terms a buyer may present is a decision solely at the discretion of the buyer and what the seller is willing to accept.  The new form also lets buyers and sellers understand that the market is cyclical and value placed on property is always in flux.

This new language is much needed to help bridge a discussion between agents and their clients on the current market conditions and bidding wars taking place.  We have seen in recent weeks historically low inventory, list prices increasing, large turnouts of showings, and contracts negotiated in hours.  All this with incredible offers over list price including additional incentives and even waving appraisals.

The exact language of the new form states the following…

“PROPERTY VALUES. The real estate market is cyclical and current property values may fluctuate. Brokers and agents cannot guarantee desired future market conditions or property values. The ultimate decision on the price and terms a Buyer is willing to buy and a Seller is willing to sell for a specific property rests solely with that Buyer and Seller.”

PPP may come to an end someday.  This reality of paying mortgages and taxes back may find some people in trouble after continuous loss of wages due to the pandemic.  A flood of homes potentially could hit the market changing the supply and demands once again.  That could create a lot of change but for now we definitely have a seller’s market here in the DFW area.  If you are thinking about selling or buying, make sure your Realtor® knows your market well.  We have lived in the Southlake area for over 20 years and have been able to provide an edge to our clients.

Read the Original Article Here: Form 1506 Revised to Reflect Market Conditions