Market Conditions in Frisco>Question Details

Padmini, Home Buyer in Frisco, TX

How is the sales trend of townhomes in frisco? Will I be able to sell it for a good margin in 3-5 years?

Asked by Padmini, Frisco, TX Sun Nov 9, 2008

i am planning to buy a townhome in frisco. it is 3 bedroom 2.5 bath. I am concerned if it would be better to buy single family than townhomes. Please advise

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Townhome and duplex products in Frisco haven't shown to have high rates of return in the short-term, but they are a relatively new product to our area. We are mostly single family homes, and in some cases you can buy a 4-bedroom single family home for less than a 3-bedroom townhome. Rule of investment is to make the wisest purchase with the greatest potential at resale. In Frisco, that still points to single family homes.
Web Reference: http://www.rondaallen.net
0 votes Thank Flag Link Wed Nov 12, 2008
Padmini,

The short answer is no. However, if you are getting the deal of the century on it, you may be able to turn a profit. If you're paying market value then you will very likely break even or have a very small profit after all closing costs and expenses incurred when selling a property.

Frisco is very family oriented so usually buyers are looking for a home with a yard which a townhouse doesn't offer. Another important factor is having a 2 car garage, I assume it has one. That's a must for resale in Frisco.

With a townhouse, you have monthly HOA dues that you never recover either.

Naima
214-289-8555
naima@sumner-realty.com
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Mon Nov 10, 2008
Padmini,

None of us can predict the future. Look at the mess we're in. The difference is really lifestyle. Most of the people in townhomes I see have a particular lifestyle. Perhaps gone all the time, back for 1 1/2 days on the weekend. Maybe gone 3 weeks at a time. Also lots of single females who just don't want to take care of all the details of home ownership. Margin...tought to tell.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Mon Nov 10, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
The margins for Townhomes does not increase like a single family home does unless it is new. Stick with a house if you are looking for margin increases and to gain the equity but be careful. also, contact a Realtor and ask them to look at the market and what the projected growth is in that particukar area. I work with a lot of investors who look at these trends to determine the estimated equity.

if you have any questions feel free to give me a call at 972-529-5555 or email at charden@remax.net

Thanks and have a great day
0 votes Thank Flag Link Mon Nov 10, 2008
Based on the previous 5 years, stick with single family residences. In 2004 the average sold price of a SFR was $264K... today (YTD) the average is $306K (that's a 16% increase). Townhomes sold for $261K in 2004 and today close for $178K (that's a 32% drop). The numbers don't lie.

Compiling statistical information is my specialty and that's why I am a great buyer's agent. Best of all, all my negotiating skills and mathematical talents are provided to you as a buyer at no cost.

If I can be of any additional assistance please feel free to contact me directly. Thanks & good luck!

Mike Gonzalez, REALTOR®
Listing Specialist / Buyer Representative
Keller Williams Realty Dallas Northwest
Direct: (214) 783-4240 | MikeTX@kw.com
0 votes Thank Flag Link Sun Nov 9, 2008
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