U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Nevada > Reno-Sparks area
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 09-24-2007, 03:23 PM
 
6 posts, read 33,687 times
Reputation: 10

Advertisements

I had 2 questoins regarding the subject...We just moved to Reno and we are thinking about buying ..We plan on staying in Reno atleast 5+ yrs if not longer. My first question would be what do you all think about buying now knowing that the prices may continue to decline? We did look at some houses that are already in the market... quick move in houses is what the builders called it and had them priced higher than their base price on the same models..citing the upgrades done... Now to my second question... is there any room for bargaining here and if so by how much.. Some friends have said that some builders go down their pices by upto 15-25k... want to know if that is ture... thank you for all of your suggestions and time!
Reply With Quote Quick reply to this message

 
Old 09-24-2007, 07:17 PM
 
1,174 posts, read 6,286,678 times
Reputation: 1082
Quote:
Originally Posted by rras View Post
My first question would be what do you all think about buying now knowing that the prices may continue to decline?
That all depends on if you have an investor mindset or approach it from a homeowner viewpoint. An investor will likely wait out the current market. If that's you, remember the old saying . . . "Bulls win, Bears win, Pigs lose." All that means is don't try to pick the bottom or pick the top. While you're waiting to get something for the cheapest price possible, or sell it for the absolute most, you'll end up missing each by big magins. As long as you go get your portion of the price move, it will all work out.

If you approaach a house from a homeowner perspective, and plan on being there for a while, you'll work out just fine. However, as for the five year margin you mentioned, it's all your guess if you'll come out ahead on your resale. I'm sure the market will be better than it is today, but will it have come back up to the point where you'll make money? I don't know.

Quote:
We did look at some houses that are already in the market... quick move in houses is what the builders called it and had them priced higher than their base price on the same models..citing the upgrades done...
Upgrades puffgrades . . . who cares. The cost of such things are only pennies on the dollar and they add little in the grand price at resale. They'll add a little and certainly make the house sell quicker, but we all know it's all about square footage. The price you pay for the "upgrades" from the builder will not be returned on resale for a variety of reasons that include the fact that builder upgrades are almost always waaaaaaaaaay overpriced.

Quote:
Now to my second question... is there any room for bargaining here and if so by how much.. Some friends have said that some builders go down their pices by upto 15-25k... want to know if that is ture...
Absolutely. I don't know what price range you're looking at, so the 15K-25K might be 10% of the price or it might be 1% of the price. The bottom line is that in either case, price concessions are available at even greater discounts.

How do I know that? Well first, I just recently bought a new house from the builder. It's not in Reno, but it's 40 miles of so down US395. My straight price discount amounted to over 15%, and then there was the funny money discounts on top of the price drop, like an amount towards additional upgrades and payment of closing costs. It was all negotiated.

As for what you should ask, all I will say is shoot for the stars. It's a buyers market. Qualified buyers who are ready willing and able to make a purchase are few. They'd be foolish to let you go, no matter how low your initial offer was presented. At worst, they can say, No. At best, you'll get it or a pretty good counter from the company. At the very least, you won't know what you can get unless you ask for it.

The market has certainly slowed down, down here, but it's nowhere near what's been happening up in Reno. I speculate that I could have done even better up in Reno based upon my readings. If you don't beleive me, click here to go to a Reno real estate blog. That site will educate you on the kinds of discounts available in the Reno area, especially Somerset.

The blogger is a Reno agent, but she encourages discussions and comments from everyone else. There's lots of discussions on the Reno market, pricing, overpriced houses that arent selling, comparative price analysis, and the prices where things are selling in the region.

Be sure to take the agent's comments with a grain of salt and then read past the sometimes heated discussions amongst some the other people who posts. There lots of informational gems to be found in the posts and comments if you take the time to read through the site.

BTW, if you were looking for some kind of guess on when the Reno market will hit bottom, you'll get lots of guesses on th Reno real estate blog site. IMO, it appears that things might keep sliding through at least '09 when they'll bottom out and then begin to increase in '10. When they'll finally get back to the '05 peak will be anyone's guess.

I hope that answered some things for you. Hopefully you'll get some more responses.

Last edited by garth; 09-24-2007 at 07:34 PM..
Reply With Quote Quick reply to this message
 
Old 09-25-2007, 08:17 AM
 
1,174 posts, read 6,286,678 times
Reputation: 1082
I just thought of something else that might shed some light on the price concessions in today's market. There is a new house down the street from me. It was first on the market, last year, for $565,000. When I looked at it, it was priced at $541,000. Now, the builder has it available for $501,000 as soon as you walk in the door. That's a total drop from their first price of $64,000!

Will there be more discounts available for a ready, willing, and able buyer were to make an offer? I don't know but I would certainly try. Again, it would be foolish for them to let such a person walk away.

Under such circumstances, you could probably get some non-price concessions. Perhaps things like additional dollars towards upgrades where the true cost to the builder is much less than the amount they're giving you. Maybe you could get closing costs, too. Each of these things will save you money in some form or fashion.

It's no different up in Reno. In fact, I would say it's even worse. I recall one of the builders up in Somerset, Pulte Homes, recently had a weekend "sale" where they dropped the prices on their homes for that weekend. They were down to something like $121/ sq ft. That's real low!

So, good luck on your decision.
Reply With Quote Quick reply to this message
 
Old 09-25-2007, 11:00 AM
 
6 posts, read 33,687 times
Reputation: 10
Thanks a ton Garth! I think you helped a lot with your suggestions...It will come in handy when we make our next offer! The last one balled and I thought may be I overdid it....With the decision to buy we are looking it from both angles! We have kids so a house would be nice for them to run around and play... at the same time... the city is new and so is the job... so a small scale investment may be wiser... so we are looking no further than 400000k... and it is the general feeling that new already built houses are cheaper than if we were to consider and pick out our lot and options...I will definetely follow the blog for sometime to come to get a feel of the whole thing! but the whole thing is stressful... (I thought it would be exciting) I like Lennar... but whoever gives the best deal... Also if anyone knows of a website for reviews for builders...like real reviews from people and some from organizations... it would be very helpful! Thanks in advance!
have a great day you all!
rras
Reply With Quote Quick reply to this message
 
Old 10-01-2007, 04:47 PM
 
Location: Carson City, NV
52 posts, read 198,713 times
Reputation: 38
Remember, it is LOcation, Location, Location.
Prices are falling.
Better deals are on homes that need to be sold.
Builders are in trouble and are offering perks but may not lower prices much. They just throw in extras.
Buy an established home in a newer area for the best price.
Dont get your heart set on one home, put many offers in on several homes and take the one ready to deal. That is your best bet. You won't lose if you get it at rock bottom prices.
Sharon
wife of a RE broker
Reply With Quote Quick reply to this message
 
Old 10-04-2007, 06:29 PM
 
6 posts, read 33,687 times
Reputation: 10
Thanks a lot Sharon! I did not know we could put in multiple offers! We are looking at south Reno at the moment... DoubleDiamond or Demonte Ranch...I hope that is a good location? Please let me know if it is not...thanks again.
rras
Reply With Quote Quick reply to this message
 
Old 10-05-2007, 09:06 AM
 
154 posts, read 902,114 times
Reputation: 127
The South Meadows (Double Diamond/Damonte Ranch) area of Reno is great. There are lots of nearby walking trails and the area has a few nice (small) parks. The views of the Sierras (Mt. Rose) are great. Plus, it's near most major employers and shopping/dining.
Reply With Quote Quick reply to this message
 
Old 10-05-2007, 09:54 AM
 
Location: Reno, Nevada
1 posts, read 4,910 times
Reputation: 10
There are many different areas of Reno which are offering great "deals," specifically Somersett in the NW; Wingfield Springs in the Northeast (Sparks), and, yes, Double Diamond as well. You can make offers on more than one home, but not at the same time! You must have your offer either countered or rejected before you write another one, or you could be obligated to purchase two homes at the same time. I always suggest that you select the area that you prefer and then find a floor plan that you like within a neighborhood and then seek out how many of that model are on the market. Setting up a very tight criteria you can figure out a reasonable cost per sq. ft. for that home and then figure the cost. If you find four or five of this model (not unusual in this market) you start with your No. 1 pick and then move on down the line. Don't expect the short sales and the foreclosures to be a slam dunk. They can take a long time to close and you are dealing with the bank, not the owner or "former owner" of the property. It's not unusual to put in a bid for a home and not hear anything for one to two months. Prices will be much more flexible when they reach 180 days on market or more; that's when they turn from an asset to a liability on the bank's books, and they are much more willing to negotiate.

Besides price you need to look at financing to get a great deal. Some owners are willing to carry, or they can "buy down" your mortgage rate to get you an even better interest rate. You have to think "outside the box". The number of resales on the market is slowly decreasing, and has been since July 9 of this year. It actually decreased by 200 this week. Is this a turning point? I don't know, but the lower the inventory the higher the prices. We still have a great deal of inventory (4609 condos, manufactureds, and Single Families in MLS as of 10/3 and of those 4326 are still available for sale - the rest are under contract). I track my numbers every week and have for almost three years.

I specialize in Relocation. California has a 9.3% state income tax (the highest in the country) and we have none; our real estate taxes are just under 1% and we have very little traffic (compared to the Bay Area we have NO traffic). I have lived all over the country and can tell you the good and the bad of Reno. Four seasons, moderate cost of living, great growth potential, great geographic location, easily accessable airport, etc. If you have specific questions either visit my website for an on-line relocation package at Charlene Hamilton - Every Year A Great Vintage or call me toll free 866-600-5188 and I will try to help you.
Reply With Quote Quick reply to this message
 
Old 10-05-2007, 03:37 PM
 
Location: Not the end of the Earth, but I can see it from here
3,526 posts, read 3,650,733 times
Reputation: 3308
Quote:
Originally Posted by chamilton View Post
The number of resales on the market is slowly decreasing, and has been since July 9 of this year. It actually decreased by 200 this week. Is this a turning point? I don't know, but the lower the inventory the higher the prices. We still have a great deal of inventory (4609 condos, manufactureds, and Single Families in MLS as of 10/3 and of those 4326 are still available for sale - the rest are under contract). I track my numbers every week and have for almost three years.
Might the drop in the number of resales be partially due to the changes in relisting policies recently implemented by MLS?

Just curious...

RM
Reply With Quote Quick reply to this message
 
Old 10-06-2007, 06:36 PM
 
6 posts, read 33,687 times
Reputation: 10
Thanks a lot Chamilton... We visited various open houses and some new homes on the damonte ranch and curti ranch.The builders give a better value for the money is what we felt. That said I had a quesiton which may seem like a repetition of the one I asked before but it is not in the sensethis concerns a specific builder, Lennar. The ones we liked better were by Lennar... To look at from a layman's point they seem to be better and quality construction than the others.. We may make an offer... not very sure yet. The incentives seemed nice but the sales rep said they wouldn't go down a penny on the asking price. I have heard this before that Lennar does not negotiate on the asking price like some of the other builders.. If anybody knows otherwise I would be really thankful for your reply about the price, quality of the house(if u live in one) or their services... In short everything good and bad about Lennar! Thanks so much in anticipation.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Nevada > Reno-Sparks area
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 05:26 AM.

2005-2019, Advameg, Inc. | Please obey Forum Rules | Terms of Use and Privacy Policy

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top