Home Buying in 78732>Question Details

Ks@sr, Home Buyer in 97045

What advice can you provide on value when buying a new home in Steiner Ranch?

Asked by Ks@sr, 97045 Mon Jul 27, 2009

I noticed big variance in new home prices by 2 builders, with similar home options, in the same area of Steiner ner Ranch. Any thoughts?

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I am not an agent and no expert, but I am buyer and have been tracking home prices in SR on this website from several months now. I have to say the price per sft for new home seems inline w/ the resales. Since those are new homes, I think it's better deal especially if some of you believe we can negotiate down to some extend.

I realize the resales have landscaping but for most part it's pretty basic like a lawn and few trees in the back, and few shrubs in front, so that is not much $ to put in something like that.
0 votes Thank Flag Link Sat Jan 14, 2012
That's funny, Eric. I live in Steiner Ranch and do a good portion of business in the neighborhood and I've never even HEARD of Eric Coston. Is this a forum to answer questions and provide a service or are you just trying to plug your friend?

There are a lot of variables in Steiner - could be different views, lot sizes, etc... Remember that builder spec homes are generally priced anywhere between 8-19 %(based on my own personal tracking of Steiner Ranch) above what they'll actually accept, depending on where they are in build-out of the neighborhood.

http://www.MySteinerRanchHomeValue.com is a great resource to follow home prices and trends in Steiner.
0 votes Thank Flag Link Fri May 21, 2010
Ks,

The most knowledgable person about Steiner that I know is Eric Coston. He lives in Steiner and works out there a lot. He is a Realtor with Austin Home Store. 512-466-1898 or ecoston@austin.rr.com

Thanks,

Eric Hunke
Prudential Ultima Real Estate
512-699-3742
erichunke@gmail.com
Web Reference: http://www.EricHunke.com
0 votes Thank Flag Link Tue Jul 28, 2009
Good day to you KS,

Wow! You've received a lot of good responses to a GREAT question? For the most part I agree completely with most or all of each answer. They have all made excellent points. So now I want to throw in my 2 cents worth.

Lets start by establishing your definition of value. Depending on your personal perception or definition- what the word means to you will absolutely impact the answer to your question. Is your definition based on price, $ per sqr. ft., quality of construction, features and finish out, amenities, or a combination of all of the above?
See where I am going? How you define value may/will be different than other perspective buyers or even Realtors and Builders. We all want the best value but best value to me may be different from best value to you.
1. My first advice is to be clear within yourself on what value you seek.

2. My second point of advice is to secure the assistance/service of a real estate professional in achieving that value. While today's technology offers you access to a world of information, you still have to know what the information tells you and it will never give you the same value as "insider" information from those who are in the business everyday.
3. Finally, I would say you need professional leverage. I have to totally disagree with one point made in a previous answer. Yes this is a competitive market but builders margins ARE NOT relatively the same. I say this with confidence and speak from authority. I spent 24 years in the new homebuilding industry as an agent, builder, and senior manager for national, regional and local home builders both production and custom builders alike. I can tell you their margins are not the same. Nor is their motivation, business models, incentives, marketing approaches, and pricing strategies just to name a few. Bottom line best price MAY NOT be the best value to the client/customer. The key is to know how to structure the purchase so as to create the overall best value for the client/customer.

This is why I created Cornerstone New Home Solutions, a company that specifically specializes in clients desiring to purchase a new home from a builder or build a new custom home from the ground up. Now I represent the best interest of the buyer not the seller. I take all my 24 years of knowledge and expertise within the new home industry and use it to create the best overall value for my clients. I know the new home industry. I know how they think, how they budget, their costs, their margins, and most importantly how they deal. I save my clients time and I SAVE THEM MONEY! Feel free to visit my web site- http://www.CornerstoneNewHomeSolutions.com
to learn more about our service and benefit to you. Search new home inventory. Learn more about Steiner Ranch. Get area information you need to make important decisions. All at no cost to you.

I will be happy to answer any questions,

Stephen B. McClain, Broker/Owner
Cornerstone New Home Solutions
512 876-3116
smcclain@cornerstonenewhomesolutions.com
0 votes Thank Flag Link Tue Jul 28, 2009
I agree with Tim Moncrief -- the question is impossible to answer without knowing specifics. Buyers negotiating directly with the builder without benefit of representation are doing themselves a disservice. How do you think the market slide in Steiner happened in the first place? Caveat emptor.

Good luck,

Mary Strickler
Prudential Texas Realty
0 votes Thank Flag Link Tue Jul 28, 2009
Dear Home Buyer,

Good day. It seems as though you have been provided with some useful information by other local area experts. I would like to provide to you a free resource where you can compare recently sold homes in the Steiner Ranch area, it's free and easy; http://www.buyershouserealty.com.z57preview.com/hvalue.shtml

Keep in mind that BuyersHouseRealty works exclusively with buyers and firmly believes in buyer education, so much so, we pay you for that education.
Learn more>> http://www.buyershouserealty.com.z57preview.com/realtor_cont…

HAPPY HOUSE HUNTING,

Gavin St.Louis
Texas Managing Broker/Realtor
BuyersHouseRealty
"Showing You the Real Estate Rebate"
0 votes Thank Flag Link Mon Jul 27, 2009
I have worked this community for 15 years and Steiner has the reputation of acquiring the best of production and custom home builders. There is a legitimate answer to the question; there is some part of the equation that is comparing apples to oranges, in lieu of apples to apples. Without more knowledge the question is impossible to answer. I have worked with new home builders directly for 20 of my 28 years in the business; thus, I know what makes them tick.

Because we are in such a competitive market, profit margins do not vary much from builder to builder. The only means of me answering the question is to physically see what homes, homesites, and builders you are talking about. The answer could be finish detail, lot premiums, slab cost differentiation, home design, etc..... If a deal was so much better than another builder, one has to ask, "why has the home not sold?" There is a reaon.

Cheers,
Tim Moncrief
Owner
Bartlett Real Estate Group of Keller Williams
CLHMS
Web Reference: http://www.TopKWGroup.com
0 votes Thank Flag Link Mon Jul 27, 2009
Ks,

Builders in Steiner Ranch are competing fiercely for your business. In neighborhoods where Drees and Taylor Morrison are building side by side, big discounts are available. Of all the builders, Highland is currently the busiest and least likely to deal. Pricing for the builders is somewhat misleading as they have no 'true' market to determine values so you will see a lot of pricing games going on. For instance, original price on the home of $600,000 now priced at $495,000. Seems like a huge value play but the home was never worth the $600,000 or it would have sold for that already. Lot premiums also vary by builder. Bottom line, negotiate hard with the builders, ask for discounts, design center credits, closing costs, anything you can think of.

Let me know if you have any further questions.

Tom
0 votes Thank Flag Link Mon Jul 27, 2009
Prices in that MLS area of Austin have been in a downward trend over the last three quarters with a substantial drop in prices. In the current market suburban houses tend to go down more than houses that are closer to central Austin. Houses hold their value better in areas where you are not competing against builders.

If you buy a new home expect not to be able to resell it for what you paid for at least 5 years. It is better to buy a resale home that is about 2 years old. Also most of the Formaldehyde off-gassing takes place during the first 2 years.
0 votes Thank Flag Link Mon Jul 27, 2009
Without knowing who the builders are, they could be in different sections of the
neighborhood. As with most communities, Steiner has a lower end and higher
end area with different sized lots, views, etc.

It's also worth noting that new home options with one builder do not always
stack up against another one. If you got a tricked out Mainstreet Home, for instance,
it wouldn't really compare to a basic Mercedes Home from a quality standpoint.

Check the subdivision they are building in and see if you can find it on a community
map. Does one have larger lots, mountain top views, etc? Then check the actual
builders themselves. Not everyone adheres to the same standards of quality.

Hope that helps. :)
0 votes Thank Flag Link Mon Jul 27, 2009
There may be a difference in actual location, such as power lines, greenbelt, view and also a difference in quality of finish out, etc. Many factors can affect a price. If you're not already working with an agent, I'd be glad to help. You can hover over my photo or name and see all my contact info. Thanks, Joe
0 votes Thank Flag Link Mon Jul 27, 2009
Hi Ks,
It really depends on the builder and what quality and price range they are building at. Also, if the builder moved into the area later that builder would have had to pay more for the land, thus their home prices could be higher.
You can send me an email about both builders and I could give you a better opionion.
Have a great week.
Jeff
0 votes Thank Flag Link Mon Jul 27, 2009
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