Market Conditions in 75229>Question Details

Lionalfa750, Home Buyer in 75229

Home in the 75229 area of Dallas Old Preston Hollow between Midway and Preston and Royal to Lovers are all over. What is the ideal $/sq ft?

Asked by Lionalfa750, 75229 Fri Sep 30, 2011

I realize that price/sq ft is dictated by many factors for homes in this area but I am finding that the pricing is not consistent. Can some one tell me the realistic selling prices for properties in this area? I am looking for a house in the $1,000,000 range with about .75 acres. Also, If I buy a property that shows DCAD appraised value of $1.3M and I pay $800,000 what will be the actual DCAD value for the property? Will they revise the price to reflect the downward market trend?

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Lionalfa750’s answer
Thank you Kim,

How about this one at 121 days in the mkt
8123 Inwood Road
Dallas, TX 75209-3337
$1,432,000
• Active Listing
MLS# 11603151

I have talked with several agents who unanimously agree that the house on 4522 Walnut Hill is overpriced.
3 votes Thank Flag Link Fri Sep 30, 2011
Pricing does vary by condition and location. You'll find the ones with higher price per square foot are probably fully loaded with amenities and might even be recently built. Larger lots do command a higher price, which works into the price psf. Mainly, you'll find older homes with lower price psf.

As to tax appraised value, the most recent sale will heavily influence the value assessed. So, a house not sold for several years will reflect the prices of nearby homes sold, but when it sells, the actual sales price is the strongest indicator of value. Tax appraisers have in prior years been able to ignore distressed sales, such as foreclosures, but they are factoring them into tax-appraised values now.

Your specific example of buying for $800k versus an appraised value of $1.3M will likely result in the appraised value dropping to the sale price. Be warned, though, that Texas is a non-disclosure state, and if the buyer/seller demand the price be hidden from public view, then the tax appraiser can pick whatever he wants for value, until you protest and disclose the settled price.

If you need some help finding the property, please let us know. We'd be happy to help you find and negotiate what you're looking for.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Wed Oct 5, 2011
Bruce has summed that issue up very well. He always does and I greatly enjoy reading his posts. Everyone has their own set of reasons about why they believe their property should command a certain price. The key is bringing both parties together, in a reasonable and level headed fashion, while doing our dead level best to get our clients the best possible deal we can. It isn't always possible to get a smoking deal on a great place - too many variables, which obviously includes seller motivation. I enjoy the exercise of making a case on the behalf of buyer clients, to seller clients who may need a nudge to see things in a slightly different light - I have a great command of that particular strength. One thing even the greatest of agents can't do however is MAKE anyone take less than they want to. They obviously have to come to that decision on their own time and terms. Unfortunately some of us end up with the blame when things don't go the way the buyer wants them to. But that does not mean we don't work every angle we can, with every scrap of evidence we can get, to make the best cases for our clients. In the case of the Inwood property I can see that it's on a larger piece of land, and has a small vineyard on site. While that may not mean a lot of any given set of buyers, it probably has significant meaning to the seller, and they may feel that it "should" have significant meaning to whomever they sell their property to. But the bottom line is really this - the buyer really does set the price IF the seller is motivated to sell. I have seen far more than a few sellers turn down lovely, reasonable offers only to sell for far less in the long run. Lionalfa, I would like to offer to take you to lunch for further discussion. If you are willing, and not working with an agent of course. Love to - get in touch if you like. Best regards, Kim
1 vote Thank Flag Link Fri Sep 30, 2011
As indicated in my original question; All of the provided answers have been taken into consideration. Yet, I am unable to obtain a more concise answer. Case in point for simplicity sake, lets take two particular houses of which I feel would be more closely to each other in many ways as appropriate comps:
8518 Inwood Road
Dallas, TX 75209
$949,000
MLS# 11566691

4522 Walnut Hill Lane
Dallas, TX 75229-6350
$1,450,000
MLS# 11654997

Yet, as you might notice, the listing on 4522 Walnut Hill is a $500,000 more expensive. What is wrong with this picture? Lot of houses in this area have been in the market for greater than 6 to 8 months with no sale in sight. I believe that both home owners and agents alike fail to recognize that we are no longer in a housing market boom where you could name your price and got it. There are houses in these areas that can offer very accurate information when it comes to obtaining a proper comp, it just requires a little more effort on both agent and buyer to ensure a more realistic and accurate information. You just can not scan houses with similar sq ft and expect to arrive at an acceptable come in order to arrive at a specific listing price. Just my two cents worth.
1 vote Thank Flag Link Fri Sep 30, 2011
I think Ken's answer sounds pretty accurate to me. I have lived in this area for 20 years - and am pretty familiar with all the properties in Preston Hollow, Bluffview, Midway Hollow and Devonshire areas.
Raw Land in this part of town goes for around $ 1.2 M to $ 1.5 M /acre on average. Maybe more for a super special creek lot or something along Cochran Chapel or Sunnybrook, Miron, etc. Straight Lane also tends to command a "market premium" as well. Please contact me if I can be of further assistance.
Some good answers to these questions from other Agents. And yes, if you end up paying less for a property than the DCAD Assessed Value - you can take the Closing documents in to show them that the house recently sold for less and it should be adjusted accordingly. Good Luck !

JAY NAREY, ABR, ALHS
Keller Williams - Preston Rd.
jaynarey@kw.com
Web Reference: http://www.jaynarey.com
1 vote Thank Flag Link Fri Sep 30, 2011
I searched for sales within the last 365 days within the exact boundaries you mentioned (the area bounded by Midway Road, Royal Lane, Preston Road, and Lovers Lane). I found 75 homes sold between $800,000 and $2,000,000.

The average sales price was $1,193,540. The average size was 4,909 sq. ft. The average price per square foot was $251.48.

Another way to look at it is to break the sales down into three groups of 25 homes:
1) The "lowest 25 homes" had sales ranging from $173-$219 per square foot.
2) The "middle 25 homes" had sales ranging from $220-$251 per square foot. The action was very evenly distributed throughout that range.
3) The "highest 25 homes" had sales ranging from $263-$698 per square foot.

Bear in mind that I am averaging apples and oranges together. As other agents have noted, the area you mentioned can be better broken down into several distinct subdistricts. Let me know if you'd like to see such an analysis.
Web Reference: http://www.mstreets.com
1 vote Thank Flag Link Fri Sep 30, 2011
I understand your desire to have one true number that you feel can be applied across all the homes in the area. It would be extremely helpful in valuing properties and determining what is a good deal and what is not. Unfortunately, that one number doesn't exist. Properties have different location, finish, age, and there are many factors that go into each on of those items.

This is where your agent provides one of the most valuable services, pricing the home, and allowing you to figure out what the home is actually worth. If you're working with an agent, you should involve that agent heavily in figuring out what the home is worth and what you think you should pay for the home.

If you're not working with agent, this is a great reason to find a good one and have them help you.

Of course, I'd be happy to help. Give me a call at 214-883-3479 or e-mail rs@ryansmithrealty.com.
1 vote Thank Flag Link Fri Sep 30, 2011
Brian, Bernard, and Max,

Thank you for your feedback. I have another question. How does the newly enacted regulations regarding independent appraisals is impacting the residential real estate market? When discrepancies regarding appraised values verses selling price occurs Do the sellers adjust selling price when such appraisal comes in below the contract price? Or does the buyer must come up with the difference? If the seller refuses to adjust the price can the buyer walk away? In the past these appraisals were significantly influenced (pressured)by the listing agent, mortgage lender and buyers agent alike to ensure that the deal close.


Thanks in advance.
0 votes Thank Flag Link Wed Oct 19, 2011
By the way, to answer your question regarding DCAD value, it is possible that they will readjust the tax value of the home based off of your HUD1 which is the official closing documentation for the transaction. They do, however, consider the value of other surrounding comps so you may need to get your agent to do a market analysis to take with you if you have to present your case in front of the review board. There is no guarentee one way or the other that they will accept your request for lower tax value.

It's more than real estate. It's RAYL-Estate!

Brian Rayl
Keller Williams Elite - Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
0 votes Thank Flag Link Wed Oct 19, 2011
I want to breifly disagree with Bernanrd Homes: Don't look at Zillow for pricing. Texas is a non-disclosure state, which means Zillow does not get access to sold prices. Their prices are based mostly on appraised value. Appraised value does NOT equate well to a potential sell value. If you look at the Zillow disclosures (which they hide fairly well, and are the result of Zillow loosing a lawsuit due to their Zestimates), their estimates on Texas properties is rated as 1 star, which means that they are within 5% of the sale price less than 40% of the time and within 10% of the sale price only about 70% of the time.

When dealing with a million dollar property, if you are 10% off, that is a $100,000 difference! You cannot risk that.

You need to work with an experienced real estate agent who is familiar with that area and can break down the comparible properties for you and give you a good estimate of what a particular home in that area is worth. There are a lot of variables that go into that estimate that you have not included in your initial question or followups. I know you said you are working with a very sharp agent, but is it an agent that is familiar with that particular area?

I used to say there are 3 things that sell a home... but in this market, I have added a 4th:
1) LOCATION - Corner lot? Near a top notch school (not just in the district, but is it walking distance)? On a busy road?

2) Condition - There may be two homes that are very similar in size, shape, and lot, but are they in the same condition? Is one home outdated and the other has been completely remodeled recently?

3) Price - Price SHOULD take into account #1 and #2, as well as #4 below

4) The new one that I added, as mentioned by others below, is MOTIVATION. Is the home being sold by someone just looking to move up and isn't really motivated to sell? Is it being sold by a family trust that doesn't really care what they get for it? Perhaps it is someone that is very close to being underwater in their mortgage, and they price it over market because that is what they actually need to pay off the mortgage.

Best of luck with your home search. Preston Hollow is a gorgeous area.

It's more than real estate. It's RAYL-Estate!

Brian Rayl
Keller Williams Elite - Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
0 votes Thank Flag Link Wed Oct 19, 2011
Sounds like a beautiful area.
0 votes Thank Flag Link Thu Oct 13, 2011
After reviewing some of the comments here I can somewhat concur with some of the advice offered. Lionalfa, you seem to have a strong grasp of the area market and I would continue to follow your prudent approach. Despite of what you hear, this is a strong buyers market that in a nutshell appears that it will lingering with us for some time. If you have cash on hand it would certainly will place you at a significant advantage. Credit is hard to obtain at any level and more so is the case when you are looking at Jumbo loans for homes with greater values of $500k plus range. Good luck.
0 votes Thank Flag Link Sun Oct 9, 2011
Bruce,

Your point is well taken and believe me, I am also fully cognizant of all of the variables at play. I have been there and done that. I have been combing this area for the past few years and have seen all the dynamics at play. Greedy kids, the ones that just want out, the owners who can no longer afford the tax liability, the house flipper, the divorce story, the owner that got swindled into some business venture, and the overly eager seller who feels that have a Sahara in the middle of the dessert. I have passed some good deals in the past mainly due to timing. Patience, I have. My wive and I can wait until the the house we seek comes to the market at the wright price. $1,000,000 is a lot of money and surely will like to spent it well. I appreciate your feedback.

Kim,

I appreciate the offer. I am currently working with an agent and he is very sharp. It is that I am VERY picky and very analytical when it comes to finding the house we want.
0 votes Thank Flag Link Fri Sep 30, 2011
The trick is people have different priorities....you can ask anything you want, doesn't mean you will get it.
Preston Hollow has held up fairly well despite the rest of the economy, and this is probably to be expected where you have the likes of former Presidents and NBA owners among others living. Year over year average and median sales prices are about even. Listings are down, sales are up....absorption has improved.
With all that said....each situation is unique.....some people may desperately want to sell, but can't lower their price based on what they paid (think short sale). Some people may have been in the house for 50 years never put any money into it, so got in for $60,000 or $80,000 and can afford to take a nice hit to equity to get out. Some may be estates sales with greedy kids, some may be estate sales with kids who just want to get rid of the burden. Some streets have "name", some streets have "prestige", some people don't give a flip. Divorce situations can also play a factor.

I always try to help my buyers take the entire situation into account. How much they like the house, how long they will live there, their resources, their current living situation, their time frame. Then we look at the seller's situation, and try to come up with a price that will work for both parties. It is not unusual to pay over list for the right house, and then again in today's market, it is not unusual to do the full court press that makes sense for all parties situation. In a place like Preston Hollow there's just way way too many factors to put a one price fits all $ on the homes as easy as that might seem to do.

Doing that will make you way overpay for some and leave money on the table for others.

You have picked two houses that look similar....but different circumstances and to me entirely different locations and likely different situations. I'm not going to beat up on either one of them in a public forum, but if you need a great realtor to represent you and give you some ideas to think about with both of these homes we can of course give you more information in a private setting.
0 votes Thank Flag Link Fri Sep 30, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
One of those homes has a family connection to it's listing agent. If those two homes should really, indeed, be closer in price, you may find that motivation is answer to the pricing question.
0 votes Thank Flag Link Fri Sep 30, 2011
HI Lionalfa750,

Well by now you have gotten more answers and advice regarding your question on pricing and the DCAD appraisal issue than you wanted, yet I will just add this:

You don't buy a house "by the pound" so to speak, for many many reasons,. In this case there are way too many variables to ascertain an average selling price in the area you are looking. Differing factors aside from condition and updates dictate the value from home to home. You are buying many things in addition to bricks and mortar-- the lot size, the setting, the architectual quality, the immediate neighborhood and block, outdoor amenities, etc.

In regard to the DCAD question, if you pay LESS THAN the county accessed value you can take your closing HUD statement into DCAD and petition for the price you paid to be the new value.

I hope that helps and please contact me if I can assist you debbie@debbieingram.com
Web Reference: http://www.debbieingram.com
0 votes Thank Flag Link Fri Sep 30, 2011
Ideal?.....this is very tough in this area. Depends perhaps on what street, where it is on that street, age, updates, condition, etc. They vary widely...as listed below there have been homes sold in the $175/sqft range and some north of $300/sqft. I've seen homes on busy streets that were about ready to fall over from the 1950 era, with no updates, and pools about ready to cave in to homes on Deloach and Daria that are towards probably $300/sqft in great condition. Probably as you get in the NW corner prices are generally better than as you go to the South or SE corner, but then again depends on the house. There some that are nearly new with all the bells and whistles and some that are old and need attention everywhere.
Sounds like you are doing pretty well if you can get one appraised at 1.3 for $800K.
You can see my diatribe about tax appraisals here:
http://activerain.com/blogsview/1703533/tax-appraisal-values…
Common sense would tell you that you could likely get it lowered, but there is no guarantee and seems like there is not always rules they follow about reducing values. My first thought is to next year when values come out in the Spring is to take your contract and show them the contract value and argue that is the market value. That may or may not work. If not is is probably worth hiring an advisor and going in front of the full board and if necessary going all the way to arbitration.
I've put a link for Preston Hollow homes for sale below. If there are any you'd like to see or if you would like to sit down and strategize more about prices and offers please give me a call.
0 votes Thank Flag Link Fri Sep 30, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
When you purchase a property, if the sales price is lower than the appraised value you can take your closing documents to the Central Appraisal District when it gets closer to tax time and they will adjust it accordingly.

With regard to the first part of your question, I believe the other agents have responded appropriately. Please note however that Old Preston Hollow is the two-mile square area between Preston & Midway, NW Hwy and Walnut Hill. Not that it matters, but this is a very large area and must be narrowed down to give you an accurate ppsf. Plus a number of other factors must be taken into consideration.

Please let me know if I can be of any assistance.
0 votes Thank Flag Link Fri Sep 30, 2011
Apparently you must not have a Realtor representing you. NO REALTOR can provide a virtual price per sq. ft. to your benefit could be misleading statements.

Contact my office happy to assist you and details for all your requires answers.

NOTE: I am extremely familiar with this entire area.... great opportunities for a home buyer

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Sep 30, 2011
Min 80.36 158,550
Max 497.28 6,495,000
Average 252.69 1,668,502
Number of Properties: 26
Average ( SalePrice / SqFt ) : $252.69
I agree with Ryan, they are houses sold for $80.36 Sq ft to $497.28 sq ft. I will suggest to get with a experience real estate agent and get better advise.

Any question, feel free to call 214-336-7831
0 votes Thank Flag Link Fri Sep 30, 2011
Kim Nwachukwu
Agent
Coppell, TX
..BEST ANSWER
You appear to understand residential property pricing correctly. Homes are NOT sold by the square foot, although in areas where homes are very similar in size and build the asking price per square foot can be a good barometer to go by. In the Preston Hollow there will be far too many variables and so few similarities involved to be able to state an opinion of square foot price calculation based on price divided by square feet is reasonable one or not. For instance, let's say a spare bedroom in that area is worth oh, $8000. Doesn't matter if the house is 3,000 sf, or 7,000 sf, the bedroom still has a perceived value of $8,000. In the mathematical calculation the sf price of the 7,000 sf house will always be smaller of the 3,000 sf house each room, bedroom, bath, etc. has a perceived value to the market. Homes in Preston Hollow can be priced from around $150/sf to over $500/sf - there IS no rule of thumb. Attempting to purchase property by arguing a square foot price almost always fails - it's just not the right method.

Regarding your tax appraisal question - the appraisal district can make allowances based on settlement statement paid prices IF they feel like the buyer paid fair market. Unless the property is greatly overassessed, it is doubtful they'll have much interest in dropping taxable value by almost 40%. You will probably be able to get them to come some, but I don't have much hope they will drop it that much. Many of last years assessments typically went UP or remained stable in Preston Hollow, they didn't go down. The Dallas high end market is rocking - yes, deals can be made on specific properties for specific reasons related to that ONE property and that ONE seller, but it is a mistake to assume that the overall market is down in Preston Hollow.
0 votes Thank Flag Link Fri Sep 30, 2011
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