Some clueles builders raising prices (really), some give 10-13% off list; foreclosure - whats a buyer to do?

Asked by Jj, Plano, TX Fri Feb 22, 2008

A decent CMA is very tough to do in Murphy (I am not an agent). Agent give me CMA that is all over the place - not his fault. Owners do not want to sell - in some areas (prices have dropped slightly - see CC records) - as they cling to old values. One builder just raised prices -- guess they think no one will buy anyway, so let us sell fewer to some suckers. Funny thing is you can go 1 block and start laughing hard when you see competition lowering prices. Another builder is ready to offer 10-12% instant discounts. Amazing area - completely different from a more stable Plano market. Thoughts? Do you agree or am I wrong?

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Brian Stitzi…, Agent, Collins, MS
Wed Feb 27, 2008
BEST ANSWER
its like with stocks-you just never konw and may second guess yourself. Just do what you thnk is right for you financially and your family. Good luck
1 vote
Dallas Texas, Agent, Dallas, TN
Wed Feb 27, 2008
Depends on how financially stable the builders is during slow months Nov, Dec, Jan, Feb not many are buying so $ing could be less, when the warm families come out and start shopping to price can go up. It also depends on the quality of home and builder. Some builders community work with families from $100K - $150K then another builder across the street could build home for $200K and up.

>>>>>CMA if the agent could not find homes that sold like in the past 6 months sometimes realtors and appraisers have to reach further out too other areas. High luxury areas difficult not many sale those homes you have reach further out in the area too comp a home.
Web Reference:  http://www.lynn911.com
0 votes
Jj, Home Buyer, Plano, TX
Wed Feb 27, 2008
Folks - thanks for the answers. I do understand the apples-2-apples compares, supply/demand etc. Actually, only 1 builder raised the price and told us that obviously everything is negotiable. When you see so many foreclosures and short sales in such a small area, you begin to wonder how good a deal one can get if one is patient. Some $480k homes (sold 1-2 yrs ago) are in the market for over 15% less.
0 votes
Brian Stitzi…, Agent, Collins, MS
Wed Feb 27, 2008
Compare apples to apples (like builder to like builder) and a CMA is very possible. Then look at Fair Market Value of the property in question related to the comparable sold homes. Does the subject property have upgrades, amenities, etc that the solds do not have. Is the subject property lacking in certain aspects –amenities, bad location. It should not be that hard. Builders will raise (and lower) prices based upon many factors—fiscal year end, end of month, amount of inventory, cost of material. And material costs and type of material may also be a reason for the difference that you see. Walk some homes at frame stage and compare building practices. You get what you pay for applies to new construction also. Plano is built out and does not have the new builds that Murphy does
0 votes
Melissa Hail…, Agent, Plano, TX
Sat Feb 23, 2008
JJ,
Even in a turbulent real estate market, your Realtor should be able to provide you a good CMA. It all depends on what you are looking for. Do you want comparables for homes in a specific neighborhood only? Or are you looking for comparables to a particular home (size, # of bedrooms, etc)?

New constrcution is a world of it's own because builders are a business and they set their pricing based on what makes the best business decision. Builders have been known to raise the price of a property so they can add on incentives, while other times they will take a loss on a property because it's a better business decision to sell at a loss than keep paying on a property that's not moving. On the other hand, with a pre-owned home a homeowner/seller needs to get a certain amount of money for a home just to pay off the mortgage.

Murphy is a wonderful area and is experiencing rapid growth, both commerically and residential. Plano is also a great community, but doesn't have as much available land as Murphy for new construction. Both areas are served by Plano ISD which is a desirable school district. If you are looking for a "new" home, your best bet would be Murphy as there are more choices available.

Regardless of where your home search takes you, I would advise hiring a Realtor to assit you in your purchase. There is no cost to you as a buyer for an agent's services, and having a professional to represent you (regardless of purchasing new or pre-owned homes) is always worth it.

If you have any questions, or need more information, please feel free to contact me at 214-418-0180. Have a good weekend!

Melissa Hailey
Coldwell Banker Jane Henry Realtors
0 votes
Jeff Kessler, Agent, Austin, TX
Sat Feb 23, 2008
Builders like to raise prices then give incentives. Helps them to sell and keep their bottom line. I have worked for a few builders over the years. If you are looking to save money. There are ways to save on a new home by using an agent that will give you cash back at closing.
Good luck.
J.
0 votes
Paul Renton &…, , Atlanta, GA
Sat Feb 23, 2008
Jj,

If the firat CMA was all over the place get a second opion. Ask for a Top Producing Realtor. You need the best representation that is available. If you need a referral in Plano feel free to contact me I have some great Realtors I know there and I used to work for David Weekley. God's Love to Texas!
Web Reference:  http://www.TeamRenton.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Fri Feb 22, 2008
Builders probably will raise prices in some areas as inventory clears and commodity prices rise significantly. It just depends where they set their prices initially. There are some builders known to cut the fat from the beginning. Some offer the upgrades built in to the price. Some offer rock bottom price and rip you on the upgrades, some always offer XXXXX of the list price to make some of the deal makers think they're getting a deal. Plano is probably more stable as there is very little new construction left, unlike Murphy which is still wide open.
0 votes
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