Hyper-Local Trends on Collin County Homes

By Brent Wells

Brent Wells was born and raised in North Texas and is a broker at LivingWell Realty. With a background in computer software, he continuously leads the way in innovation and technology.

If you are looking to buy or sell a home in Collin County right now through mid-spring, you may be hearing that this is an extreme buyer’s market. Major real estate outlets are saying buyers can do whatever they want, and sellers have to give in.

That description may be true at a national, state, county, or even city level. However, it’s not true at the neighborhood level, and that’s the level that matters most.

Let’s take a closer look at what drives demand at the neighborhood level.

How the hotness factor reflects demand. Years ago, there was a term called the hotness factor. It was similar to an absorption rate combined with pricing metrics. It simply described the demand for homes in a specific neighborhood. While the term is not used as often today, the concept still applies. It measures how desirable a home is within that particular area.

The risk of lowball offers. Some neighborhoods have homes that sell for high prices and attract strong demand. Buyers who make lowball offers without understanding this demand lose every time. They may not even realize they missed their dream home because they relied on general market data instead of neighborhood-level information.

Making the right offer based on the neighborhood. Generic metrics might suggest offering 92% to 94% or even 95% of the asking price, but that does not work everywhere. Consult your real estate agent, and have them clearly explain the proper price for the neighborhood. You can sometimes offer less and still win, but making an offer without understanding the local demand, especially in the spring market, usually leads to missed opportunities.

Why hyper-local demand matters. Some neighborhoods or hyper-local areas experience intense demand for various reasons, such as school districts, home quality, or the area’s physical characteristics. Large neighborhoods can also have multiple sections at different price points. In each section, demand and the hotness factor may differ, which can affect pricing.

How sellers should assess below-asking offers. When an offer comes in below the asking price, sellers may not know if it is fair. Working with a real estate agent who understands the neighborhood helps make an informed decision.

Why neighborhood-based pricing matters. When listing a home, it is important to price it correctly based on the neighborhood. Even in this market, multiple offers are still happening, which is unusual. Correct pricing plays a major role in attracting that kind of activity.

There have been recent instances in which offers were made in January and February but were not accepted. Some sellers passed on offers without negotiating because they were too far below the asking price. Those homes were sold before buyers could make another offer.

In another case, a home that had been on the market for about 100 days received a second offer the same weekend a new offer was made, creating a multiple-offer situation. Even a cash offer was declined in favor of a higher-priced offer.

Buyers and sellers need to be very aware of neighborhood-level activity and pricing. That awareness directly affects outcomes in today’s market.

If you are buying or selling a home in Collin County and want guidance tailored to your neighborhood, reach out to us anytime at (972) 825-3672, email brent@livingwell.realty, or visit livingwell.realty. We can walk you through current pricing, demand, and strategies to make confident decisions in today’s market.