Home Buying in Austin>Question Details

House Hunter, Home Buyer in Austin, TX

How much is a perfect lot and view worth? I am in love with a house in Steiner Ranch that has a fabulous pool and outdoor living space, private

Asked by House Hunter, Austin, TX Fri Jan 8, 2010

backyard and fabulous views. however, the closest price house on the street has sold for $150,000 less (no privacy, no view, no pool). Is it a bad idea to buy the house? The owners won't budge on the price and don't care if they don't sell quickly.

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8
House Hunter, great question. I would have to know more about the house, features, yr. built, etc. It may be worth what they are asking, but without more details it is impossible to give you an educated answer. If you'd like, contact me and I will get some relevant details and run comps, etc. to let you know if it is priced right or what the right price is. It also depends on what the home is worth to you and how long you intend on keeping it.
Joe Jarusinsky, REALTOR/Master Instructor, Keller Williams Realty (you can click on my name to the right to get all my contact info., etc.)
1 vote Thank Flag Link Fri Jan 8, 2010
The first question you should ask yourself in regards to this property is "How much am I willing to pay for a home that I feel sits on the perfect lot and has a great view?"

Also, I know there have been several short sales and foreclosures in that neighborhood so perhaps that is the reason for such a large price difference between the homes? Homes in Steiner Ranch with a pool have sold on average at $133.93/sq. foot. (The high end is $182.92 and the low end is $108.65 over the last 3 months.

You can also contact Brian Talley 512.554.9714 who is very familiar with the area, I'm posting his website as a helpful link for you.

Best of luck!!!


Janae Oliver
Web Reference: http://www.regentpg.com
0 votes Thank Flag Link Mon Jan 11, 2010
The house ultimately is worth what you are willing to pay for it. When it is something either great positives or bad negatives to homes, the appraised value is far from what people are willing to pay. The big question here is what percent your down payment will be on the house. If you absolutely love this house, and are willing to pay the extra $150,000, and it doesn't matter to your deal if the appraisal does not come in at value, you might want to go for it.
As far as how an appraiser arrives at value, the value of a pool itself is not as much as previously stated, although it varies based on the value of the house. I took a look at a few appraisals that I had for some of my recent clients, and all adjustments vary. On a $665,000 value, the inground pool adjustment was $15,000. On a $1.6 million house, the adjustment for a superior location was $100,000, which on a $630,000 value, only $36,000 was deducted because the house backed an interstate. As far as lot size goes, one of the issues I have seen is that the adjustment for lots is based strictly on square footage, whether one is a perfect square and one is hilly makes no difference. There are certain other things that are also left to appraisers interpretation. Some will deduct for houses on a corner property, or add for a house in a cul-de-sac.
0 votes Thank Flag Link Sun Jan 10, 2010
Steiner is a great community. The thing you need are accurate comps to see if there are really any comparable homes to this one you love so much. If the house across the street does not have the same features it is not really comparable just because its in the same neighborhood. Every house is different, and you have to base your price on truly comparable homes. Give me a call or email if i can assist you further.
Sincerely,
Betina
0 votes Thank Flag Link Fri Jan 8, 2010
Hey House Hunter,

If you'd like me to help you get this home closer to a price that is comfortable for you, just email me (or call) and I'll get it for you on "performance based" conditions.

People hire me from all over to do this. You have nothing to lose, that's for certain.
If you are currently working with an Agent, we can discuss delegation between us for an excellent partnership experience.

Again, my results are performance based, so you have nothing to lose.

email me direct here with your info on this and I'll take a look for you to see what I can offer.
Shawn@ShawnMon.com
512-330-1075
0 votes Thank Flag Link Fri Jan 8, 2010
In general, 1) view, 2) larger lot size, and 3) privacy could be adding 5 to 10% each (so 15% to 30% more for those. And the pool could be adding 75 cents on the dollar (of construction cost). So if the pool, decking, and landscaping was $85k new; that could be adding $65k for the pool. Also consider the total square footage of the home and the finish-out versus other homes around it too.
0 votes Thank Flag Link Fri Jan 8, 2010
HH,

Hello. First you have chosen a great community. Steiner is one of Austin's most sought after subdivisions. It is very imporatnt to make sure you pay a fair market value for your home. You never want to be the most expensive home on the block, because when you go to sell your home in a few years, you may have trouble selling it, and if you over pay today, you may lose money tomorrow, a great example would be looking at the California real estate market.

If you would like for me to do a Comparative Market Analysis, I will need more info to be able compare this property to other similar SOLD properties. You can do some home sales research by visiting; http://www.buyershouserealty.com/hvalue.shtml. If you want me to do a more detailed analysis send me an email with the address at Gavin@Buy75.com

Keep in mind that BuyersHouseRealty is the virtual evolution of real estate. We believe in educating our buyers, and we pay our buyers for their education. Learn more>>> http://www.Buy75.com

Happy House Hunting,

Gavin St.Louis
Managing Realtor
BuyersHouseRealty
"Why Buy Any Other Way"
Web Reference: http://www.Buy75.com
0 votes Thank Flag Link Fri Jan 8, 2010
1. If the comparable sales are way off the list price of the home you fell in love with, the house may not appraise.

2. If it does appraise and you overpay now, you will surely lose money when you go to sell in the next 7-10 years or so in a more normal market.

3. A lot of your question depends on the type of pool and the view, but it sounds like you're an extremely motivated buyer and the sellers are not motivated at all. Bad combination and someone ultimately loses. I would hate for that someone to be you.

Take some time and really think this over before moving forward.

Guy E. Gimenez ABR, CRS, GRI
Broker / Ownerr
The PowerHouse Group
512-71-5613
guy@phgbrokers.com

Guy E. Gimenez ABR, CRS, GRI
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Fri Jan 8, 2010
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