Question for realtors - 78756 and 78757 (Austin, West: HOA, condos, mortgage)

[TexasHorseLady]

Originally Posted by orngkat

Kind of sad though that there isn't even the opportunity for those wishing to buy a smaller home and perhaps fix up a little at a time. Amazing how standards of what home buyers "need" in a home has escalated in the past few years.

Agreed. There are a lot of buyers who WANT a smaller house and don't consider it "functionally obsolete".

I personally don't hold with HGTV (which is, when you get right down to it, a network for selling people on the idea that they NEED certain things so they'll spend money on them whether that's true or not) dictating what people absolutely have to have in order to enjoy their home. Which happens way too often, which is where you get people with the idea that no one could POSSIBLY raise a family happily in less than 2500-3000 sq. ft., never mind most everyone I know in my generation (and earlier ones) did it happily in 1500 sq. ft. or sometimes considerably less.

[Spacepup]

Originally Posted by TexasHorseLady

Agreed. There are a lot of buyers who WANT a smaller house and don't consider it "functionally obsolete".

I personally don't hold with HGTV (which is, when you get right down to it, a network for selling people on the idea that they NEED certain things so they'll spend money on them whether that's true or not) dictating what people absolutely have to have in order to enjoy their home. Which happens way too often, which is where you get people with the idea that no one could POSSIBLY raise a family happily in less than 2500-3000 sq. ft., never mind most everyone I know in my generation (and earlier ones) did it happily in 1500 sq. ft. or sometimes considerably less.

We could be hitting an inflection point now. In 78757 lots of the devloper-built HGTV checklist homes are sitting on the market for months with little to no interest in them because they are overpriced and over-luxuried for the neighborhood. I work from home and live across from a large one that has been on the market for two months @$300sqft and can count on one hand the number of tours I've seen take a look.

A lot of the problem in the area is that the original 2-1s are, quite frankly, cheaply built pieces of junk. I don't think it is the cash part of the flippers' offers that is so appealing as much as the ability to have zero contingencies. And inspection will bring up something in these houses and the sellers know it (or at least should be informed of such by their listing agents). I wish that splitting the lots were easier as I think there would be huge demand for smaller housing on 1/10th acre lots. The large ones would still get built but I think we'd see a mix.

[TexasHorseLady]

Originally Posted by Spacepup

We could be hitting an inflection point now. In 78757 lots of the devloper-built HGTV checklist homes are sitting on the market for months with little to no interest in them because they are overpriced and over-luxuried for the neighborhood. I work from home and live across from a large one that has been on the market for two months @$300sqft and can count on one hand the number of tours I've seen take a look.

A lot of the problem in the area is that the original 2-1s are, quite frankly, cheaply built pieces of junk. I don't think it is the cash part of the flippers' offers that is so appealing as much as the ability to have zero contingencies. And inspection will bring up something in these houses and the sellers know it (or at least should be informed of such by their listing agents). I wish that splitting the lots were easier as I think there would be huge demand for smaller housing on 1/10th acre lots. The large ones would still get built but I think we'd see a mix.

One thing to consider is that a lot of the time those who are looking for smaller homes are also looking for a lot on which they can garden or landscape or spend time in other ways. If that weren't the case, they'd just live in an apartment or if they wanted to own, buy a condo.

I'm having folks looking for smaller older homes on larger lots, not so they can add on but so that they cna have more outdoor space. Have yet to have even one looking for a small house on a tiny lot.

As for "something" turning up, yes, "something" will turn up in just about every home. Heck, I've had inspections on new builds that turned up problems - classic example was a problem with the central air not working properly, in Texas, in the summer! It's certainly easier to get it fixed if it's a new build before closing, but new build doesn't mean that something won't turn up on inspection.

You're right, however, someone buying an older home of whatever size needs to remember that they ARE buying an older home and it will likely have some issues that need to be dealt with and that if the price is right or the market is hot enough, they'll need to just plan on those issues when making their offer so that they have enough in reserve to fix them. And move as fast as the investors.

[Spacepup]

Originally Posted by TexasHorseLady

One thing to consider is that a lot of the time those who are looking for smaller homes are also looking for a lot on which they can garden or landscape or spend time in other ways. If that weren't the case, they'd just live in an apartment or if they wanted to own, buy a condo.

I'm having folks looking for smaller older homes on larger lots, not so they can add on but so that they cna have more outdoor space. Have yet to have even one looking for a small house on a tiny lot.

I think there is a continuum in demand ranging from large lot, large house SFH to never want to lift a finger for lawn care downtown condo. There must be a sizable segment for the small lot small(ish) house given the pace at which DR Horton is building them out (and selling them) in their Crestview City Homes development. Ok those are more townhomes with small little "yards" but that's even more extreme than what I'm suggesting. The two unit "condo" duplexes built in the neighborhood seem to sell pretty quickly as well, when they aren't price north of $300/sqft with $300-400 per month dues.

I just wish the option were there. The neighborhood is already host to a mix of duplexes and SFHs, as well as more than a few houses on double lots.

[pop251808]

Originally Posted by Spacepup

I just wish the option were there. The neighborhood is already host to a mix of duplexes and SFHs, as well as more than a few houses on double lots.

You could be called a communist for less! I've been saying things along this line for awhile in various threads, always to be told some variant of "They're illegal to build because no one wants one and besides that, "pu-pu-property values." This is the sort of infill that might eventually catch us up with demand and make older, closer in neighborhoods more usable to people who favor the idea of walking to transit and leaving their car parked at home, who buy rather than grow their vegetables, and who want a small yard for the pooch to poop in.

[austin-steve]

Originally Posted by orngkat

Kind of sad though that there isn't even the opportunity for those wishing to buy a smaller home and perhaps fix up a little at a time. Amazing how standards of what home buyers "need" in a home has escalated in the past few years.

I agree with your sentiments, but disagree that the "option" isn't there. Sellers don't really care who buys, so the buyer simply has to present the best offer. Nobody is denying a buyer the opportunity to do so.

Steve

[orngkat]

Nobody is denying a buyer the opportunity to do so.

I don't know...we watched a 2-1 across the street go on the market and saw many young couples look at it the same day.
The developer got it. Sometimes it seems like there is an inside pipeline between certain realtors, developers and the city permitting department. The demo permits happen in a matter of days around here followed by new house approval very quickly.

[austinnative69]

Originally Posted by orngkat

I don't know...we watched a 2-1 across the street go on the market and saw many young couples look at it the same day.
The developer got it. Sometimes it seems like there is an inside pipeline between certain realtors, developers and the city permitting department. The demo permits happen in a matter of days around here followed by new house approval very quickly.

I guess the other side of the equation would be -- as long-term residents, when we sell, sell to the young couple instead of the developer.

[centralaustinite]

Originally Posted by austinnative69

I guess the other side of the equation would be -- as long-term residents, when we sell, sell to the young couple instead of the developer.

Yes, although it can be tricky. Folks on our block accepted the all cash offer from a young married couple from California, they told the sellers they would be moving to Austin. But instead, after leaving it vacant for more than a year, it became a vacation rental! The owners decided it was better as an investment.

That was two years ago, other sellers on the block have tried to be more careful. The last sale the sellers told me they rejected two offers from buyers who identified themselves as investors. But it is hard to know until new folks move in. Right now, the house is being renovated and is unoccupied.

[CptnRn]

Originally Posted by austin-steve

I agree with your sentiments, but disagree that the "option" isn't there. Sellers don't really care who buys, so the buyer simply has to present the best offer. Nobody is denying a buyer the opportunity to do so.

Steve

Some sellers care. I did when I sold my rental house. It was our first house as a young married couple and we made lifelong friends with several of our neighbors, who still live there. It was my hope to sell the house to someone who would live there and I was able to do that. Selling to a young couple and passing up a higher offer from someone who appeared to be a flipper.