Low Inventory of Homes in Dallas Makes Appraisals Difficult

This traditional three-bedroom home at 6027 Shetland Drive in North Dallas is new on the market this week.

Low inventory of homes for sale in the Dallas market has created more than a fast-paced environment and few choices for potential buyers. Area appraisers have had a hard time doing their job, said Bryan Hagen of Dallas’ DW Skelton Appraisers.

Part of the problem is that many houses sell through “hip pocket” transactions - before they hit the Multiple Listing Service (MLS).

And that’s where appraisers get most of that data they need to accurately assess a home’s value.

“When you run the numbers, they aren’t there” for comparison, Hagen said at a recent meeting of Briggs Freeman Sotheby’s International Realty agents. “The number one issue is hip pockets. I’ve seen more hip pockets in the last year or two than I’ve seen in the last 10 years combined.”

He recommended that buyers and sellers ask their agents to enter data for all home sales - even hip pockets - into the MLS, so appraisers can use the information to give the most accurate home values possible. Without the data, it is very challenging for any appraiser to give an accurate value for a home.

“The private sales at this point are hurting the market,” Hagen said.

Hagen predicted a busy spring home market, and he said it would likely end early, as it did last year. So the time to list is now.

“It’s not uncommon to see sales happen within 48 hours,” he said. “We’re seeing it all over, especially in the Park Cities and Preston Hollow.”

Values are going up and buyers are lining up - with many properties drawing 15 or 20 interested buyers, he said.

With the market moving at such a fast clip, should homeowners consider trying to sell their properties without an agent?

Hagen said that, in most cases, the answer is no. With so many buyers lining up for well-priced, well-maintained homes, owners would spend all of their time on tours. They need the exposure, experience and buyers that agents can bring to them.

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