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Message
The Wild DFW Housing Market--my experience
Posted on 3/27/17 at 9:11 am
Posted on 3/27/17 at 9:11 am
I have a rental house that I decided to place on the market (I had a good tenant but he had some personal issues and paying rent was likely to be a problem in the future).
The house is a 1970 all-electric ranch-style house in a working-class area of Lewisville (demographics shifting toward predominantly Hispanic), and it needed some work (carpet, paint, bathroom renovations, but I repaired what needed to be fixed). A plus is that it is a true 4-bedroom (no garage conversion) and also it has a lifetime transferable foundation warranty (which it had when I bought it in 2006).
My real estate agent decided to list it at $149,990 and figured we would probably get some offers at that price.
House goes on the MLS on Thursday evening. By Sunday evening we had 29 showings or scheduled ones (at least) and FIVE offers. Two were all-cash lowballs but three were over list. The best one was $157,500 with 20% down and conventional financing (so if it needs any significant work we can simply negotiate a price reduction).
I can only feel for people trying to buy in Frisco and McKinney with what's going on there.
The house is a 1970 all-electric ranch-style house in a working-class area of Lewisville (demographics shifting toward predominantly Hispanic), and it needed some work (carpet, paint, bathroom renovations, but I repaired what needed to be fixed). A plus is that it is a true 4-bedroom (no garage conversion) and also it has a lifetime transferable foundation warranty (which it had when I bought it in 2006).
My real estate agent decided to list it at $149,990 and figured we would probably get some offers at that price.
House goes on the MLS on Thursday evening. By Sunday evening we had 29 showings or scheduled ones (at least) and FIVE offers. Two were all-cash lowballs but three were over list. The best one was $157,500 with 20% down and conventional financing (so if it needs any significant work we can simply negotiate a price reduction).
I can only feel for people trying to buy in Frisco and McKinney with what's going on there.
14
Posted on 3/27/17 at 9:16 am to Quidam65
I am only familiar with what is going on in Atlanta but it's gotten to the point where you pretty much have to go about 10-20% over asking to get the house.
Posted on 3/27/17 at 9:22 am to Eric Nies Grind Time
Yeah friend of mine just bought a house near Midtown Atlanta. He missed out on 5 before getting one, and the one he got he put an offer on before his wife even saw it.
Seems like there's another bubble forming.
Seems like there's another bubble forming.
Posted on 3/27/17 at 9:42 am to Quidam65
Houses in this area of NC (Greensboro to Raleigh) priced below $250K are selling in days or hours. I sold in December for a nice profit, but it was also on the market for several months before that.
Houses above that $250-300K mark are taking longer, though. Also, supply is increasing as neighbors see what the houses in their neighborhood are going for. Interesting that it isn't just a local phenomenon.
Houses above that $250-300K mark are taking longer, though. Also, supply is increasing as neighbors see what the houses in their neighborhood are going for. Interesting that it isn't just a local phenomenon.
Posted on 3/27/17 at 9:52 am to The Spleen
I have a lot of friends that have sold recently just because they get offers they could not pass up.
I don't see how it's sustainable. I bought a house 1.5 years ago and if I had to buy it now I would not be able to afford it.
I don't see how it's sustainable. I bought a house 1.5 years ago and if I had to buy it now I would not be able to afford it.
Posted on 3/27/17 at 10:16 am to Eric Nies Grind Time
quote:
I don't see how it's sustainable.
It isn't, long term. Right now I just hope it holds up through this year.
I have another rental house where my (for all intents and purposes) stepdaughter and her family live. She is moving back to near where her grandparents and other family members live; her husband has some financial issues to deal with here (I've agreed to help him on those so he can move there later this summer). Once they're out, that house gets fixed and on the market, hopefully to be sold by Labor Day.
That gets me out of the rental property market completely, with only my personal residence. And I have had cold calls on the phone and real estate agents coming up to the house asking if I want to sell. But I still have a ways to go before retirement (around 10 years) and I like where I'm living.
This post was edited on 3/27/17 at 10:19 am
Posted on 3/27/17 at 10:22 am to Quidam65
That's unbelievable. And I really want to move to the DFW area but I don't think I can afford it now.
Posted on 3/27/17 at 10:34 am to Eric Nies Grind Time
quote:
I don't see how it's sustainable.
While I'm not ruling out a bubble. I don't think you'll see 2007 & 2008 again with this. A few things are different right now.
Since 2010, housing inventory has remained flat while over that time, with low rates and increasing wages, demand has crept up. You're also seeing this rapid demand as the workforce continues to become more mobile so people and companies are seeking out regions that are desirable from a wage/taxation standpoint and quality of life.
Massive influx of new residents, limited supply based on lagging construction, and competitive rates all get to this level of demand.
While y'all have mentioned a few locations...its still specific to a relatively small number of communities. Mostly in the south and mountain west: DFW, Nashville, Denver, RDU/Triangle, Atlanta, etc.
Posted on 3/27/17 at 10:35 am to b-rab2
What is worse is that rent is skyrocketing too, so good luck trying to get a home period when your savings are getting taken to the woodshed.
Just look on Zillow or Realtor. 180k house 2013 relisting for 250......
What a wonderful world we live in.
Just look on Zillow or Realtor. 180k house 2013 relisting for 250......
What a wonderful world we live in.
Posted on 3/27/17 at 10:46 am to Quidam65
It's not all over. Our population as a country is not growing at some great pace, so for every person moving to TX, NC, GA, some other area is losing a resident.
You probably have people who are trying to buy before interest rates go back up to more normal levels, which fuels a seller's market, which fuels price increases.
But as long as people are moving to a market faster than new construction can keep up, you will have situations like you describe in DFW.
You probably have people who are trying to buy before interest rates go back up to more normal levels, which fuels a seller's market, which fuels price increases.
But as long as people are moving to a market faster than new construction can keep up, you will have situations like you describe in DFW.
Posted on 3/27/17 at 11:04 am to Quidam65
Op, you realize you hired a horrible Realtor and should fire them right? I mean that's laughably wrong. I mean what did you hire an agent for if their advice was completely off, I'd be pretty mad.
If your house gets an offer in under 7 days, you should ALWAYS wait at least a week and then if you get multiple offers tell everyone to give their best and final. Not doing this, is simply horrible business.
If your house gets an offer in under 7 days, you should ALWAYS wait at least a week and then if you get multiple offers tell everyone to give their best and final. Not doing this, is simply horrible business.
This post was edited on 3/27/17 at 11:06 am
Posted on 3/27/17 at 11:08 am to LSUFanHouston
I just bought a house in lehigh valley pa for 1/3 of what a similar place in nola cost us 2 years ago. Property taxes a alot higher but we have a better home now for a much lower mortgage payment.
Posted on 3/27/17 at 11:08 am to baldona
I think part of the current housing bubble is that there are a bunch of people getting back into the market after being burned from 2006-2008. A bunch of idiots too that had to short sale or foreclose and now trying to buy again.
There's also a ton of young professionals that are buying their "dream" house as a first house. I don't understand someone buying a $400k+ house as their first house. I know a young couple that make around $100k that bought a $450k house as their first home and 3 months after buying are already wanting to blow out the living room because its too small. Its mind blowing how some people just ruin their finances on their primary residence.
There's also a ton of young professionals that are buying their "dream" house as a first house. I don't understand someone buying a $400k+ house as their first house. I know a young couple that make around $100k that bought a $450k house as their first home and 3 months after buying are already wanting to blow out the living room because its too small. Its mind blowing how some people just ruin their finances on their primary residence.
Posted on 3/27/17 at 11:20 am to baldona
quote:
There's also a ton of young professionals that are buying their "dream" house as a first house. I don't understand someone buying a $400k+ house as their first house. I know a young couple that make around $100k that bought a $450k house as their first home and 3 months after buying are already wanting to blow out the living room because its too small. Its mind blowing how some people just ruin their finances on their primary residence.
This was kind of the wife and me when we bought our house. It was our first home we bought together, though she had bought one and sold it before I met her. It was a foreclosure, and was much more house than we needed at the time, and truthfully still kind of is. We had the intention of flipping it, but we bought it a couple of years before the housing crash. So when it came time to flip it, after some improvements, our market had cooled. By that point, we were both making more money and it never turned into a financial crisis for us, so we just decided to stay put.
We were never in a situation where we couldn't afford it, but it definitely wasn't a wise financial decision looking back at it now. We've made it work though, and have about 70% of the value in equity. Would like to put it on the market as is, just to see what kind of bites we got. It does need some updating. Kitchen is very outdated.
Posted on 3/27/17 at 11:27 am to The Spleen
My in-laws bought a house on long island in 1990, paid $120k. It's worth over a million now. Simple house too. Only a 45 train ride to Manhattan so it's very in demand area. Location location location. I wish they would sell and retire. I know I would.
Posted on 3/27/17 at 11:51 am to Quidam65
My parents were selling in Lewisville about 4 years ago. Had a buyer after several weeks but they backed out. My parents decide to stay, but then relisted 2 years ago. They had six offers the first day, multiple over ask, along with personal letters about buying it. It was insane.
Posted on 3/27/17 at 12:14 pm to baldona
quote:
If your house gets an offer in under 7 days, you should ALWAYS wait at least a week and then if you get multiple offers tell everyone to give their best and final. Not doing this, is simply horrible business.
We had FIVE offers in THREE days. Two were low-ball "I Buy Ugly House" offers, three were over list. This isn't Frisco/McKinney where you can get bizarre offers over list, this is a 1970s house in an older area (not a historic district).
Posted on 3/27/17 at 12:18 pm to TigerGrl73
quote:
My parents were selling in Lewisville about 4 years ago. Had a buyer after several weeks but they backed out. My parents decide to stay, but then relisted 2 years ago. They had six offers the first day, multiple over ask, along with personal letters about buying it. It was insane.
Five houses up from where I live (Lewisville), with ONE WEEK a house had a sign up and then had the UNDER CONTRACT sign within that time frame. (My area is much nicer than where my rental is.)
I have had agents cold call me at home asking if I was selling my house. I've had an agent walk the street and show up on my porch, asking if I was selling my house (because I re-did the front lawn). That agent said my house would sell for $240K (I paid $170K in 1999), not even looking at condition (it needs some work inside) and that was BEFORE this madness.
Posted on 3/27/17 at 12:27 pm to baldona
quote:
There's also a ton of young professionals that are buying their "dream" house as a first house. I don't understand someone buying a $400k+ house as their first house. I know a young couple that make around $100k that bought a $450k house as their first home and 3 months after buying are already wanting to blow out the living room because its too small. Its mind blowing how some people just ruin their finances on their primary residence.
If you want to buy a starter home in Dallas proper, you're going to pay $400k.
Posted on 3/27/17 at 12:37 pm to Quidam65
quote:
Five houses up from where I live (Lewisville), with ONE WEEK a house had a sign up and then had the UNDER CONTRACT sign within that time frame. (My area is much nicer than where my rental is.)
I have had agents cold call me at home asking if I was selling my house. I've had an agent walk the street and show up on my porch, asking if I was selling my house (because I re-did the front lawn). That agent said my house would sell for $240K (I paid $170K in 1999), not even looking at condition (it needs some work inside) and that was BEFORE this madness.
I understand all of that and that's all good and dandy. Look I'm very happy for you, sold at a good price you are happy with.
But my point is, you still likely UNDER sold. Fannie and Freddie mac foreclosures have a 7 day "look" period in which they don't accept any offers because they want to allow people some time to find them. All these people that say they accepted an offer in under 48 hours are idtiots. You under listed your house and then you took an offer on top of it. Give other people some time, people could be on vacation, working out of town, or just too busy to look at your house for 7-10 days and be willing to pay 5-10% more.
All you have to do is to tell people you are waiting 7-10 days to review the offers. Heck have your realtor lie and say you are on vacation. Outside of investors, no ones going to walk away from an over listing price offer in 7 days.
This post was edited on 3/27/17 at 12:39 pm
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