Why are houses cheaper in Katy? (Pasadena, Spring: for sale, foreclosures, crime)

[meilton]

Specifically I'm asking about the area just north of I-10 and Mason Rd.

I currently live in the "nice" area of Pasadena (no jokes!) at Fairmont Parkway and East Beltway 8, and we paid almost 180K for a new 2400 sq ft two-story house just over five years ago (since then I've found out it's in a 100 yr flood plain, but we've never been flooded). We have now put this house for sale since money is getting tight.

We recently looked at homes in the Lakes at Mason Park subdivision and I was amazed to see prices for new Gateway homes within the 130K to 145K range. We have already put earnest money here for a house that has not even started construction yet (est. completion: June/July).

I almost automatically assume Katy is a relatively safe city and don't consider crime a problem here. However my wife is starting to wonder why do homes seem to be so much cheaper here? Is there a catch?

She recently saw some spray paint tagging on a convenience store on Mason Rd. and immediately started to wonder about crime and safety.

I asked our salesperson about the reason for the lower prices and she said the developer and the owner set the prices, but that there is no specific reason for why they are on the lower side. She did mention how the area south of I-10 is more popular and tends to be higher priced.

Can anyone who lives in the I-10/Mason Rd. area offer any insight into this? Thanks in advance for your responses.

[SteveArmy]

because north Katy is not Cinco Ranch or a CR wannabe area

[cheryjohns]

The homes are smaller, as a rule. It's a safe area, just not as desired as Cinco, which is full of nice bigger homes. You might want to push for a June 30th or earlier closing - you probably qualify for the $6500 tax credit since you have been in your current home 5 years (not the new buyer tax credit - the other one). You will notice that subdivisions built since 2004 have been blighted more by foreclosures than older ones - is there any reason you are buying new? I have more fear of the new subdivisions under a certain price point.

[XodoX]

South is a little nicer than North. But that depends on each person. Got to check it out first. I wouldn't mind living North.

[meilton]

Originally Posted by cheryjohns

The homes are smaller, as a rule. It's a safe area, just not as desired as Cinco, which is full of nice bigger homes. You might want to push for a June 30th or earlier closing - you probably qualify for the $6500 tax credit since you have been in your current home 5 years (not the new buyer tax credit - the other one). You will notice that subdivisions built since 2004 have been blighted more by foreclosures than older ones - is there any reason you are buying new? I have more fear of the new subdivisions under a certain price point.

No particular reason for buying new. The price is low, I get the floorplan I want with my own options the way I like. Used properties I saw were selling for comparable prices, and who knows what's wrong with those.

[meilton]

Originally Posted by cheryjohns

The homes are smaller, as a rule. It's a safe area, just not as desired as Cinco, which is full of nice bigger homes. You might want to push for a June 30th or earlier closing - you probably qualify for the $6500 tax credit since you have been in your current home 5 years (not the new buyer tax credit - the other one). You will notice that subdivisions built since 2004 have been blighted more by foreclosures than older ones - is there any reason you are buying new? I have more fear of the new subdivisions under a certain price point.

Can you explain why under a certain price point? I would think if it were a newer subdivision and over a certain price point, the more likely the homeowner would have difficulty paying and then get foreclosed on.

[Thila]

I drive right by Lakes of Mason Park every day to and from work. I watched the houses go up in that neighborhood at an alarming rate. I know that new homes are being built super fast today but those seemed to be built faster than normal. I know nothing of the builder and who knows...maybe they are running a top notch operation. Just stating what I observed for a few months when the neighborhood was first built.

[cheryjohns]

Originally Posted by meilton

Can you explain why under a certain price point? I would think if it were a newer subdivision and over a certain price point, the more likely the homeowner would have difficulty paying and then get foreclosed on.

The days of getting a liar's loan are gone. People going into a $250K plus neighborhood today has to actually qualify for a $250K house. New homes under under a certain price point have more people that can qualify - and that's not what hurts the neighborhood. It's the builder that is trying to stay under that price point to make sure his houses move - and possibly cut a few corners in order to do so. Your most expensive rooms to build are kitchens and bathrooms. Whether it's a 3/2 or a 5/3.5 with 1500 extra square feet - that only 1 kitchen/2 baths vs. 1 kitchen/3.5 baths - or a 1.5 bath difference. Yes, the quality of the finishes will be nicer in the big one in a more expensive neighborhood, there is a little more land expense and more construction expense, but you are selling much more square footage overall.

[cheryjohns]

Originally Posted by Thila

I drive right by Lakes of Mason Park every day to and from work. I watched the houses go up in that neighborhood at an alarming rate. I know that new homes are being built super fast today but those seemed to be built faster than normal. I know nothing of the builder and who knows...maybe they are running a top notch operation. Just stating what I observed for a few months when the neighborhood was first built.

Exactly. Just be sure and get your own inspector, no matter how nice that builders' agent was to you. You will come out way ahead.

[MasonParkMom]

I live in the neighborhood..I purchased my home from Green Eco Builders..and we are very happy with the neighborhood and our home. We are first time home buyers, and we purchased our home in November 2009. We moved from California and I looked at all homes everywhere in the Katy/Spring area..and we just kept coming back to our home (we purchased the exact model and floorplan).
Katy is an up and coming area, and we chose The lakes at Mason because it is not as crowded as other area. We know eventually it WILL..but we are a family of 4, got the FHA loan, and never imagined having a starter home of this quality and size..(and price!). California prices are way insane and much higher..so you can imagine our position.
We also have two small children and loved the convenience of having the school right next door. Also the streets here are not busy, and that's what we are very happy about.
While it IS desirable to live in the Cinco area, for what we could afford; we are extremely happy.