Home Selling in 78754>Question Details

Morris Creed…, Home Buyer in Austin, TX

In Travis County 78754, how much price increase in the last 2 years?

Asked by Morris Creedon-mcvean, Austin, TX Mon Apr 29, 2013

we paid 192,000 for a new DH Horton home with $5k down; monthly payments are $1250/mo. What would be an approximate selling price? Purchased June 2011.

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Michael Underwood’s answer
Morris,

I'd be happy to speak with you or refer you to my web site tool for the market snaphot: http://www.mlsaustintexas.com (http://www.mlsaustintexas.com/austin-home-values) Prices are continue to rise. The active homes on the market in your area include new homes by the builder you mentioned and others and they are all INCREASING their price. The straight answer issue with your situation is that you purchased the home just a few years back and it's expensive to buy a new house like that and turn around and sell it two years later. If we could get you to break even it would be a victory.

Best,

Michael Underwood
0 votes Thank Flag Link Mon Apr 29, 2013
Morris,

One additional piece of data might be helpful. In outlying communities in the northeast, DR Horton is currently discounting prices by $15,000 to $20,000 off of list price. So if you see a home similar to yours advertised for say $197,000, it would not be unusual for the net sale price to end up being $177,000 to $182,000.

Jeffrey Schnabel
Broker | Partner | Keller Williams
512-913-7480
schnabeljs@gmail.com
0 votes Thank Flag Link Mon Apr 29, 2013
Morris,

If you purchased a new home in 2011, unless you got a discount of 15% compared to what others paid for the exact same thing, it's highly unlikely you can sell the home today for what you paid for it. That's just the nature of new home sales, they come at a premium, and as soon as you turn the key, the value now moves from the new home category to the resale category, and you can expect it to drop in value immediately by 15%.

A typical DR Horton sale in your community would have offered FHA financing, had hefty lender fees through DR Horton's own financing company, and had you roll those fees into the loan, so even if you put $5K down, you probably still ended up with a mortgage close to the actual purchase price. In your community, it's very likely that DR Horton is still building and selling new homes. But those new homes sales compete with anyone in your position who might be considering selling.

If your community is as most are, an all DR Horton community, the above issues are compounded because they were the ones setting the price and you had no way to know if it was a good price or not because there were no other builders competing for your business in that community.

As an example, there are several DR Horton communities in the northeast that were selling new homes in 2011 and are still selling new homes today. The homes built in 2011 are selling for 10% less today than when they were new, so while some might want you to believe that prices in Austin have increased over the last 2 years, that doesn't apply to new home sale values (the value of a new home sold in 2011 versus what it's worth today).

Yes, the new home version of your home looks like DR Horton has raised prices, but that's on paper, the only way to tell what the "real" price is for that new home is to know what buttons to push with the builder, and how to compare what they are offering to what you can buy someplace else. That negotiated price is for a new home, and a resale of the same home that's 2 years old, is going to be considerably less because buyers have a choice between getting brand new with a warranty, and getting something that has no warranty (at least not like a new one).

My advice on new home sales to clients is basically: If you have to have a new home (big if), then only buy a new home in a community where you can determine if the value you're paying is competitive with other options. If you get sucked into the story about the builder offering financing, offering to pay your closing costs if you use their mortgage company, and allowing you to put virtually nothing down (sometimes zero down), be careful that you're not being sold a bill of goods, because the newness goes away almost immediately as it relates to someone else wanting to buy your home, but the cost and the mortgage do not.

And don't ever get sucked into "what kind of monthly payment can you afford?", that's code for getting screwed because the seller is trying to convert the purchase into the perception of rent, but you get stuck with the new home mortgage and the declining home value, and the builder gets to walk away with your money.

Jeffrey Schnabel
Broker | Partner | Keller Williams
512-913-7480
schnabeljs@gmail.com
0 votes Thank Flag Link Mon Apr 29, 2013
Hi Morris,

I would like you to be comfortable with knowing whether you can get enough for your home to cover what you owe, before you make the decision to sell. I would like to invite you to meet with me so we can discuss. Please call me at (512)560-9318, or email me at Connie@TrueDreamRealty.com.
0 votes Thank Flag Link Mon Apr 29, 2013
Morris,
In a broad sense I can answer your question.
01-01-2013 to 4-29-2013 the average "sold price" was $84/sqft
01-01-2011 to 04-29-2011 the average "sold price" was $78/sqft
This is an increase of 7.7%

The best thing to do if you want to sell is schedule a meeting with me for a complete analysis of your specific home. Using a zip code is to large of a pool. Pricing is done in a much more narrow fashion. Homes within the same neighborhood on the same street can have different pricing. Pricing homes for sale is both at & science (so to speak).

My team and I are ready to serve your needs with direct answers and results.
Text ~ Emil ~ Call ~ I will respond quickly. 512-709-6343 or bill@ teamprice.com
0 votes Thank Flag Link Mon Apr 29, 2013
Hello Morris,

Prices are up in most areas but it's not possible to put an exact number on it. Contact an agent if you are considering selling and have them put together a market analysis for you. There are probably plenty of good comparable homes just like yours that have sold and that will give you the best idea of where you stand and what your home may sell for.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Mon Apr 29, 2013
Good Morning Morris,

In order to find out the selling price of your home, we'd look at the houses in the area and how they compare to your house. I would love to do a competitive market analysis for you. I'd need a little bit more information. Give me a call 512-222-9795 or email mollyi@maiaustinhome.com.

Have a great day.
0 votes Thank Flag Link Mon Apr 29, 2013
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