how much is reasonable for this new home? (Salt Lake City, Millcreek: for sale, real estate)

[hueimo]

I asked if the neighborhood was good at this property, but having a different question now…I’m very new to Utah, but we kind of like this new house we saw, the listing price is 399,900, the builder is only willing to go down to 380,000. Is this reasonable for the current market in SLC? The zip code is 84106, I’m not all that satisfied with the district schools for my child and it’s very close to the thrift store where I see some weird people occasionally. In your opinion, is 380K reasonable? I heard the SLC home price might go down 25%, so I wanted to just offer 300K….the builder realtor said that there’s not many new homes at the East Side of SLC like this new property and the neighborhood is a good one, the other new homes in this same community was also sold for around 382K last month. Also, the builder realtor said that if I don’t use a buyer agent representing me, they can use that 3% commission to build a basement for us…does that sound reasonable? Is it even a good time to buy a home now? Your input will be greatly appreciated!
Property Details - UtahHomes.com - Find Homes For Sale In Utah | Buy Sell Property Salt Lake | Financing | Agent Search
Utah Real Estate - Your One Stop Source for Searching Real Estate in Utah
School District: Granite
Elementary: Mill Creek
Junior High/Middle School: Evergreen
High School: Granite

[kwm03160]

Originally Posted by hueimo

I asked if the neighborhood was good at this property, but having a different question now…I’m very new to Utah, but we kind of like this new house we saw, the listing price is 399,900, the builder is only willing to go down to 380,000. Is this reasonable for the current market in SLC? The zip code is 84106, I’m not all that satisfied with the district schools for my child and it’s very close to the thrift store where I see some weird people occasionally. In your opinion, is 380K reasonable? I heard the SLC home price might go down 25%, so I wanted to just offer 300K….the builder realtor said that there’s not many new homes at the East Side of SLC like this new property and the neighborhood is a good one, the other new homes in this same community was also sold for around 382K last month. Also, the builder realtor said that if I don’t use a buyer agent representing me, they can use that 3% commission to build a basement for us…does that sound reasonable? Is it even a good time to buy a home now? Your input will be greatly appreciated!
Property Details - UtahHomes.com - Find Homes For Sale In Utah | Buy Sell Property Salt Lake | Financing | Agent Search
Utah Real Estate - Your One Stop Source for Searching Real Estate in Utah
School District: Granite
Elementary: Mill Creek
Junior High/Middle School: Evergreen
High School: Granite

In this market, I would STRONGLY advise you get a buyer's agent. You need someone to look up comparables in the area. Don't trust the builder's agent - they are looking out for the builder, not for you. With comparables, you can determine if the home is overpriced. I don't think anyone on the board (unless they live on the same street as the house you are looking at) will be able to tell you what's a fair price for the house.

I wouldn't bet on home prices falling 25%. It's nearly impossible to tell what areas will fall and what areas will increase. If you are planning on not keeping the house 3-5 years, then don't buy right now.

Most builders are firm on their selling prices... So the builder willing to drop the price indicates that it's been on the market for a while. Buying new construction is a whole different animal than buying existing. Usually, there is not much leeway in sales price. For example, when I was looking in Daybreak, I had salespeople laugh in my face when I asked how firm the price is.

Overall, find a good buyer's agent (someone on the board can probably DM you one) before you buy, even if you are buying new construction.

Remember, if you don't like the schools, you can School Choice out of those and into another. I would call the Granite School District & verify what schools are for this home. Realtors are known to be wrong when preparing the MLS listing. School boundaries are also in flux right now with the Jordan School District split & the changing demographics on the East side. Chances are, when your son enters Jr. High/High School, he will be going to a different school than the ones listed anyway.

[kwm03160]

Does someone know a good buyer's agent for hueimo? Mine only works on the west side of the valley.

[hueimo]

Originally Posted by kwm03160

Does someone know a good buyer's agent for hueimo? Mine only works on the west side of the valley.

kwm03160, thanks for taking out so much time to always answer my questions. what motivates you to answer on this forum? it's very nice of you....thanks again. I do know a realtor, but didn't sign any contract with her, she showed us 2 homes when we visited SLC couple months ago...the builder agent said I'll only get the basement built without extra charge if I don't have a buyer agent, so they can save that commission for building the basement....

[drsevrin]

I've spent the last 2-3 months looking for a new place in the Millcreek area. I currently live in the 84109 zip code, farther east, near Skyline High School. My house is about 2100 sq. ft. and my lot is about 0.37 acres. I am at the east edge of the city, with only wilderness behind me. My bank appraisal (drive by) was $310k. I have 4 bedrooms and 1 and 1/4 baths. A walk-thru appraisal will likely be higher. In the end, I've decided to stay put and remodel, largely due to our location.

Bottom line, in my opinion, with a lot size that small and only 3 bedrooms, I think the low-to-mid 300's is reasonable today. I would not pay $380k. But, it's true that new construction is very hard to find on the east side.

As for schools, I actually attended Evergreen Jr. High in the 70's and found it to be so-so. A lot of drugs and so-so teachers. I don't know much about Granite High, but generally the high schools farther east and in Salt Lake City proper seem to have better reputations (East, West, Highland). My recommendation is to look farther east or south-east. Olympus and Skyline High Schools have great reputations. I attended Olympus and found it to be first rate.

I can recommend several agents - email me if you'd like a referral. Good luck.

[SouthernBelleInUtah]

If built in 2007, this house has been on the market ofr at least 7 months. And it's in a PUD, which some people don't like. The lot is small and the houses probably very close together. Not worth that kind of money, neighborhood is OK but not at that price. For that money, you can get a house in SugarHouse proper (no of I-80) that is renovated.

[hueimo]

Originally Posted by SouthernBelleInUtah

If built in 2007, this house has been on the market ofr at least 7 months. And it's in a PUD, which some people don't like. The lot is small and the houses probably very close together. Not worth that kind of money, neighborhood is OK but not at that price. For that money, you can get a house in SugarHouse proper (no of I-80) that is renovated.

what is PUD? thanks.

[hueimo]

Originally Posted by drsevrin

I've spent the last 2-3 months looking for a new place in the Millcreek area. I currently live in the 84109 zip code, farther east, near Skyline High School. My house is about 2100 sq. ft. and my lot is about 0.37 acres. I am at the east edge of the city, with only wilderness behind me. My bank appraisal (drive by) was $310k. I have 4 bedrooms and 1 and 1/4 baths. A walk-thru appraisal will likely be higher. In the end, I've decided to stay put and remodel, largely due to our location.

Bottom line, in my opinion, with a lot size that small and only 3 bedrooms, I think the low-to-mid 300's is reasonable today. I would not pay $380k. But, it's true that new construction is very hard to find on the east side.

As for schools, I actually attended Evergreen Jr. High in the 70's and found it to be so-so. A lot of drugs and so-so teachers. I don't know much about Granite High, but generally the high schools farther east and in Salt Lake City proper seem to have better reputations (East, West, Highland). My recommendation is to look farther east or south-east. Olympus and Skyline High Schools have great reputations. I attended Olympus and found it to be first rate.

I can recommend several agents - email me if you'd like a referral. Good luck.

lots of good information here, I really thank you a lot for sharing.

[SouthernBelleInUtah]

PUD=Planned Unit Development. Google it to see other examples.

[drsevrin]

Originally Posted by hueimo

lots of good information here, I really thank you a lot for sharing.

You're welcome. BTW, just got my county appraisal today - $295K for my 2100 sq.ft. home on the upper east bench above Skyline High, with no homes behind us and 0.37 acres. And prices are falling . . . good luck.