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Old 06-06-2010, 02:09 PM
 
8,245 posts, read 11,173,355 times
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Quote:
Originally Posted by Deadmaster200 View Post
Hey guys, thanks for the replies. Could anyone recommend any more specific areas within Richardson or Plano? I did a quick search on the 3 mentioned by Kirkpatrick, but didn't really like anything I found (again just did a quick search though).

Can you tell us what you found in those area & why you didn't like them? (Architecture style, yard size, floorplans, amenities, etc) so we can recommend an area you may like more?
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Old 06-06-2010, 11:25 PM
 
Location: Richardson, TX
15,821 posts, read 14,093,074 times
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Quote:
Originally Posted by Deadmaster200 View Post
Hey guys, thanks for the replies. Could anyone recommend any more specific areas within Richardson or Plano? I did a quick search on the 3 mentioned by Kirkpatrick, but didn't really like anything I found (again just did a quick search though).
There is currently a property for sale on my street for $225k; it's less than 1700 square feet but has been totally renovated. To get something bigger you would have to go with a house that has had little to no renovation or you would have to spend more. I live in Richardson between Arapaho and Belt Line to the north and south and 75 and Waterview to the east and west. This area is affordable but it is definitely more per square foot than some of the new construction in far-flung suburbs like Frisco. If you want sailing-high ceilings, a "master suite", a media room, etc. then the 1950s and 1960s ranch houses in Richardson are probably not for you. You can get beautiful houses here but if that's what you want then it's not in your price range.

My house was built in 1957 and has had very little in the way of updates done to it. It still has its original pink 1950s master bathroom. Many houses in this neighborhood still have their "vintage" bathrooms; it's actually a selling point around here.
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Old 06-07-2010, 03:27 AM
 
41 posts, read 127,314 times
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I really have no intention of offending anyone, but that is what I didn't like when I did that quick search. I just can't undrstand why something so old and small should be worth that much money, especially in Texas. The kind of house I would consider doesn't have to be brand new, over 3000 square feet, or anything quite so demanding, but that kind of house for over 200 just doesn't make any sense. Do you mind if I ask why such homes are so high and why people think those are good buys? If there is something I am not taking into consideration, please educate me!!
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Old 06-07-2010, 06:50 AM
 
Location: Richardson, TX
15,821 posts, read 14,093,074 times
Reputation: 13079
Quote:
Originally Posted by Deadmaster200 View Post
I really have no intention of offending anyone, but that is what I didn't like when I did that quick search. I just can't undrstand why something so old and small should be worth that much money, especially in Texas. The kind of house I would consider doesn't have to be brand new, over 3000 square feet, or anything quite so demanding, but that kind of house for over 200 just doesn't make any sense. Do you mind if I ask why such homes are so high and why people think those are good buys? If there is something I am not taking into consideration, please educate me!!
I don't have an answer for you on that. In general, the closer "in" a house is to central Dallas, the pricier it is. Some neighborhoods are very desirable because of location, schools, or both. If you want tons of square footage cheap then you will have to live pretty far away from Dallas itself and you are looking at long commutes unless you also work in the far-out suburbs.

Homes in Richardson have a tendency to hold their value because it's an "inner ring" suburb and the schools are excellent. To me it's no contest between Richardson and Frisco; even if I worked in Frisco I doubt I would live there. It's just too far away and houses there are less likely to hold their value.
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Old 06-07-2010, 07:27 AM
 
8,245 posts, read 11,173,355 times
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Quote:
Originally Posted by Deadmaster200 View Post
I really have no intention of offending anyone, but that is what I didn't like when I did that quick search. I just can't undrstand why something so old and small should be worth that much money, especially in Texas. The kind of house I would consider doesn't have to be brand new, over 3000 square feet, or anything quite so demanding, but that kind of house for over 200 just doesn't make any sense. Do you mind if I ask why such homes are so high and why people think those are good buys? If there is something I am not taking into consideration, please educate me!!
Yes- location, location, location. There is no more land to be developed in Plano & Richardson, especially between the Tolllroad and Central. The homes are smaller and older because more of the selling price is tied to the land value than the physical structure of the home's value. These are areas where 50-90% of the property's value is the land. Land rarely depreciates, whereas the physical structure depreciates each year.

If you look up some of these addresses in Dallas Central Appraisal District or Collin County CAD, you can see how the home's appraised value has shifted in the past 10 years. In a great Richardson location, the land value is likely to have almost doubled - or more- in the past 10 years, while the structural value is likely flat to down 20-25%.

Now go find a brand new home in Frisco/ Allen/ McKinney and look up it's history. In the past 5-10 years, it's likely that land value AND structural value have both declined since the home was built- in except a few prime areas that are out of your price range. This is because there is still SO much land to develop that values are not settled in yet, wherreas Richardson was mainly developed 50-60 years ago and Plano was 30-40 years ago. These areas- particularly at lower price points- are riddled with foreclosures and short sales, which also negatively affects the value of the entire neighborhood.

We suggested Plano and Richardson because you mentioned it was a strong possibility you may need to sell in 5 years or less and these are two affordable areas that have held their value over a long period of time- less likely that you will need to bring $10k, $20k, $50k to the closing table to cover the gap between the balance due on your mortgage and the home's current value after it declines more. This scenerio IS happening today in far-flung suburbs where buyers took out 100% loans on shiny new 3500sf "American Dream" homes- only to fritter away savings trying to keep up with their neighbors. One job loss or pay cut and boom! They can't afford mortgage payments, don't have adequate savings, and aren't able to sell due to their home value declining and all the freebie upgraded builders are offering in the next subdivision over because they need to unload their inventory.

If you like the look of a newer bigger home, I highly recommend renting for a few years until you are more certain of your long-term plans. That will eliminate the risk for you.
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Old 06-07-2010, 07:37 AM
 
8,245 posts, read 11,173,355 times
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One more point- Dallas real estate is as expensive as many other US cities for a good house in a prime location (based on distance to downtown) with excellent schools. And yes, the close-in lots and homes are generally smaller, unless one can afford to pay $200k-$2M for a lot and then another $500k-$2M for a newly built home for the lot.

Where things are cheaper than other cities is in the ring of suburbs about 20+ miles (1 hour commute++) out from downtown. Because land is plentiful and seemingly endless, cheap construction on dirt cheap land rules. This is where one can afford to buy a lot for $20-50k and hire a lower grade builder than people would use in the "prime" areas I mentioned above and get a brand new home for $90-200k.

Make sense?
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Old 06-07-2010, 10:44 AM
 
15,992 posts, read 25,866,162 times
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Quote:
Originally Posted by Deadmaster200 View Post
I really have no intention of offending anyone, but that is what I didn't like when I did that quick search. I just can't undrstand why something so old and small should be worth that much money, especially in Texas. The kind of house I would consider doesn't have to be brand new, over 3000 square feet, or anything quite so demanding, but that kind of house for over 200 just doesn't make any sense. Do you mind if I ask why such homes are so high and why people think those are good buys? If there is something I am not taking into consideration, please educate me!!

Do you know the three most important rules of Real Estate? TC named them...

Also Econ 101 is germane: supply vs. demand.
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Old 06-07-2010, 01:48 PM
 
Location: Plano
225 posts, read 300,153 times
Reputation: 106
Ahh-BigDGeek- I will be moving to your neighborhood at the end of the year. It sounds like you're in the Richardson Heights/Floyd Terrace subdivisions. Great area with well built pier and beam foundation homes. I play tennis there with some friends who live in the neighborhood at those two courts in the park.

To DeadMaster-as TurtleCreek80 mentioned, what did you not like about those three areas I mentioned? I'm not sure how to advise you farther until I understand what you didn't like in particular. Thanks
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Old 06-08-2010, 06:26 AM
 
41 posts, read 127,314 times
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Hey guys, thanks for all the great replies and wonderful information. I have a lot to think about now.

Ryan,

I didn't spend a lot of time looking, so I may have missed some nicer options, but from what I saw, the structures were not worth 200 or more (though as explained, it is the land that carries the value). Although I now understand the logic of why those homes cost what they do, I still would not pay that kind of money for that structure. I would pay the extra money for a lot in such an area and build something maybe. However, doing a general search of PLANO on realtor . com produced many different kinds of homes, newer and older. Basically, it doesn't have to be brand new, but not older than 20 years. I would also rather have a 2-story structure unless the lot is very big. After living in Japan for so many years, I am really looking forward to having some space and breathing room.
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Old 06-08-2010, 06:48 AM
 
Location: Richardson, TX
15,821 posts, read 14,093,074 times
Reputation: 13079
Quote:
Originally Posted by Ryan Kirkpatrick View Post
Ahh-BigDGeek- I will be moving to your neighborhood at the end of the year. It sounds like you're in the Richardson Heights/Floyd Terrace subdivisions. Great area with well built pier and beam foundation homes. I play tennis there with some friends who live in the neighborhood at those two courts in the park.
Welcome! Heights Park is great; I live in the Heights Park subdivision. I love my neighborhood.

Quote:
Originally Posted by Deadmaster200 View Post
Hey guys, thanks for all the great replies and wonderful information. I have a lot to think about now.

Ryan,

I didn't spend a lot of time looking, so I may have missed some nicer options, but from what I saw, the structures were not worth 200 or more (though as explained, it is the land that carries the value). Although I now understand the logic of why those homes cost what they do, I still would not pay that kind of money for that structure. I would pay the extra money for a lot in such an area and build something maybe. However, doing a general search of PLANO on realtor . com produced many different kinds of homes, newer and older. Basically, it doesn't have to be brand new, but not older than 20 years. I would also rather have a 2-story structure unless the lot is very big. After living in Japan for so many years, I am really looking forward to having some space and breathing room.
If you are looking at a house that is 10-20 years old then you need to make sure that the AC, furnace, etc. is new; that is the prime age for the original units to be at the end of their useful lives. My 50+ year-old house had a new AC compressor and a nearly-new furnace when I bought it. Makes a big difference. Personally I don't understand why you would want something built on a slab in the 1980s unless you want to spend a lot of money on systems and foundation repair. But that's just me. You need to be wary of slabs in this area. But if you are looking for shiny and new then Richardson is not for you and Plano is out of your price range. Try Frisco, Allen, McKinney, Lewisville, Flower Mound, etc. And enjoy your long commute.
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