Cinco Ranch, Katy -- resale value of homes (Houston, Howe: for sale, leasing)

[dumeril7]

Hello,

My family and I will be relocating to the Houston area in the near future and we've been interviewing realtors. One of them is really keen on Cinco Ranch and from what I saw via some Google searching, it looks like a very impressive neighborhood. However, one of my other realtor candidates has indicated that the resale value of existing homes for Cinco Ranch is not very good in the short term -- that is, 3 years. In particular, she says that existing home prices have fallen in the last couple of years relative to other potential neighborhoods in the Houston area. We're talking existing homes here and she's not attached with any sort of builder so I don't have a reason (yet) to suspect her motives. I've read conflicting reports about Cinco Ranch resale value of existing homes on the web, and I intend to ask this realtor for stats to back up the claim. But I'm very interested in any feedback on this.

Some context: Short term resale value is important to me because I don't know how long I'll be in Houston and I don't want to take (too much of) a financial beating on a house if I have to sell in the next few years. I know I'll probably take a hit on closing costs, but I'd hate to add to that problem by the house going down in value as well. Also, perhaps at odds with a strong resale value, I'm looking at suburbs like Katy because of other family/school/house requirements.

Any thoughtful help you could provide would be highly appreciated!

D7

[descovy]

Don't get a new house... Go for resale. Your biggest hit is if you go new. And don't go for huge house, at least in my part in Cinco the 3000+ sq ft houses sit on the market a lot longer than the 2200 sq ft house.

Your best, best bet is to rent a house in Cinco. I wouldn't buy for less than 3 years, honestly

[descovy]

Also to add, you will be hard pressed to find ANY neighborhood that doesn't have the very same problem you describe. It isn't a just a Cinco issue...

[Lost_In_Translation]

Originally Posted by dumeril7

Hello,

My family and I will be relocating to the Houston area in the near future and we've been interviewing realtors. One of them is really keen on Cinco Ranch and from what I saw via some Google searching, it looks like a very impressive neighborhood. However, one of my other realtor candidates has indicated that the resale value of existing homes for Cinco Ranch is not very good in the short term -- that is, 3 years. In particular, she says that existing home prices have fallen in the last couple of years relative to other potential neighborhoods in the Houston area. We're talking existing homes here and she's not attached with any sort of builder so I don't have a reason (yet) to suspect her motives. I've read conflicting reports about Cinco Ranch resale value of existing homes on the web, and I intend to ask this realtor for stats to back up the claim. But I'm very interested in any feedback on this.

Some context: Short term resale value is important to me because I don't know how long I'll be in Houston and I don't want to take (too much of) a financial beating on a house if I have to sell in the next few years. I know I'll probably take a hit on closing costs, but I'd hate to add to that problem by the house going down in value as well. Also, perhaps at odds with a strong resale value, I'm looking at suburbs like Katy because of other family/school/house requirements.

Any thoughtful help you could provide would be highly appreciated!

D7

I don't know the specifics of Cinco Ranch, but if you really are planning on being in Houston <3 years, you might seriously consider leasing like the poster above mentioned. Atleast do some research and see where you would come out ahead. Given closing costs and fees associated with selling, a nice rental.

Houston properties, Houston open houses, and new Houston listings - HAR.com

[cheryjohns]

I don't know where the other realtor is pulling stats from - but Cinco appreciates. Like descovy said, resale would be far better. The worst thing you can do is buy in a new neighborhood, where they will still be building when you go to sell (your competition will be new homes). In Cinco, I would put the time frame at 2 years - less than that, rent. You will have an appreciating hyouse, but closing costs (count both the buy and the sale) will not make it worth your investment.

[CRBoyd91]

I haven't really seen values plummeting or anything. Probably more of the other way around for us personally--Our house's value has increased somewhat over the last 10 years.

[jtothemak]

3 Year is a short time to be considering owning a home. Cinco Ranch would have you best potential. Houston stays pretty flat with home values, we never saw the big boom but also did not see the big dip. With that being said any home you buy for short term is not going to up in value much. When you sell you are going to pay 6% to a Realtor, a home is not going to appreciate typically that much in 3 years with this economy. Find a house to rent instead if you don't have roots to put down.

[dumeril7]

Thank you all for the valuable input! Very much appreciated. The 3 year figure I posted was worst case scenario; the more likely scenarios are longer than that. I think between the info I got here and the market analysis I got from the person who I ultimately selected as my realtor, I've got a course of action that I feel confident in.

Thanks!
D7

[westres1]

I would look at homes in the 77079 area. They appreciate much more than any neighborhood in Katy

[honycombe]

I completely agree with westres1. If you can afford a house in 77079, as well as any money you might need to put into it as they are older homes, you would get a faster return on it then you would on a house in Cinco. It's closer in to Houston then Cinco, which adds tons of value. My mom owned a house in 77079 and she made money off of it after only living in it for @5 years. She bought a brand new house in Cinco, lived in it for 7 years, and after putting money into it to fix it up (replace carpet, paint, light fixtures, ect.) she about broke even. Cinco is a fantastic neighborhood where property values will hold. If you only live in it for 3 years, and don't have to spend any money updating it (exchanging brass fixtures for bronze, ect.) you should at least break even, though maybe lose out slightly after realtor fees & closing costs. You should be able to buy a fairly new house, completely up to date in Cinco for a good price, that would allow you to break even. Do not buy new, there are enough slightly new, used houses for sale. However, again, 77079 is a FANTASTIC, established neighborhood with good schools. Houses cost more and need more work as they are older, but you should definitely not lose any money, and probably make money. Make sure you have a good realtor though if you look in that area, you will need to worry about foundation, plumbing, ect.