Confused...do builders offer anything else beside alder... (Dallas, Richardson: sales, house)

[leanne62499]

BigD...my post was initially talking about choices not prices...I am more puzzled by the lack of choices in that price range than the price...So you are saying that in 2015 a buyer has to go with whatever is offered and stop looking for whatever they want? anyway....thank you all...this post is changing direction...not in the way I was hoping for. I apologize if I offended anyone with my comments!

[BigDGeek]

Originally Posted by leanne62499

I agree...I was just wondering what do people do for a living to be able to afford such high prices�� my husband and I are both working and have above average incomes...still would not want to go above my 550 k budget...I guess we will have to be very careful and take longer to buy a house...which I dread. I was hoping to be able to build and get what I like for that price...I guess not.

To be honest, I don't know either. I make over $100k and I still couldn't get a $550k mortgage.

According to some online calculators, I could buy up to $480k with my debt-to-income ratio and a $50k down payment. But I wouldn't do that. It's foolish to mortgage yourself up to the eyeballs.

If I doubled my income, debt, and increased the down payment to $75,000 I could afford almost a $1 million mortgage. Two high-earning professionals could certainly tackle a $550k mortgage.

I can only speak about my own personal situation. For me, my house is more than adequate. I live alone in a 3-2 house and it's plenty big enough for me. (I realize just how big it is every week when I clean every room. I couldn't imagine cleaning 3,000 sq ft every week.) For me, it's more important to have a smaller mortgage and more cash to put aside in savings and investments than to have a big fancy house. I could afford a big fancy house. But it's not a priority for me. I could afford a nice Mercedes or Lexus, but I drive a Prius. Fancy cars aren't a priority for me.

Also, don't assume that everyone who plops down $700k for a house is making a sound financial decision. They might have no savings at all. No safety net. They might face financial ruin if they or their spouse lose their job and they go down to one income. Even when I was married, my ex and I always maintained a lifestyle that could be sustained on a single income. Some people choose not to do that. (I came out of my divorce with $100k in cash, by the way. And so did he.)

You have to decide on what's best for you. If the house of your dreams puts your financial security in jeopardy, it may turn out to be a nightmare down the line. Something to think about.

[octo]

About affordability: For example, my employer compensates with a good base salary plus stock options, restricted stock, bonus and profit sharing. Some years this amounted to a $50k after tax check in February in addition to the regular salary check for me and I'm not even in management. If this is common for tech companies in the Metroplex then it is not that difficult for a couple with jobs like this to afford a $500k house. Looking forward to next week

[TurtleCreek80]

Originally Posted by leanne62499

Ok...but the reality is that the prices are not warranted....I am just wondering how can people afford such prices...TurtleCreek80... You say that because Toyota is bringing in jobs....the demand is so big that prices are "inflated" and still people wait in line for whatever they can get? My comments were directed towards the lack of choices that seem to prevail regardless of the builder. So...are you saying that most people can afford a 550k mortgage and are happy to get what is offered? Unfortunately that is how the big housing bubble happen...people were force and lured into buying beyond their means. When I lived in SoCal several years ago, people were paying 700k for a house that 2 years later was valued at 300k...is that what is coming to TX? I hope not...��

You misunderstood what I wrote. Prices in the northern burbs have been going UP since 2011 at a faster rate than the rest of the country due to our strong economy. Toyota only announce their move about a year ago . We had 3 strong years prior to that and Toyota will only insulate the northern burbs from any economic weakness due to lower oil prices. Make sense? Toyota isn't the root cause of price appreciation, not by any stretch.

Also, the median home price in Collin County is around $300k and the median income is around $115k. That's pretty in line with standard income-to-home price ratios. People buying $550k homes likely have the breadwinner making much more than the median income OR dual incomes. It's not that hard to have a $200k household income in Collin County with two professional spouses. EDS, Frito Lay, JcPenney, Ericson, FedEx, Toyota, etc all have HQs or major offices on Legacy Drive.

The lending process in Texas is much stricter than, say in California/Nevada/Florida pre-2008. Our state got burned in the 1980's and put more regulations in place which caused us to not have much of a housing bubble in the mid 2000's and positioned us for much stronger recovery post 2008-2009. If you want to know how many people are living beyond their means, check on the amount of pre-foreclosures or foreclosures. The DFW area has a VERY low % compared to other metro areas. Our home price growth is based on the economic strength of our area and high demand of relocatees from around the US and the world, not a California-style smoke & mirrors bubble.

And lastly, YES I do believe most people with a $550k budget in Collin County are very happy with what they can buy there. I work for one of the above mentioned Legacy companies although I live in Dallas. My coworkers who have relocated from NYC or the northern mid-west are always thrilled at the size/age homes they can buy in CoCo compared to what they lived in back home. A lot of younger relocatees are able to upsize from a condo/townhome to a house with a real yard or pool. Re: style options, the vast majority of people prefer traditional or transitional homes, not modern. Modern homes are very slow sells in CoCo and have only recently become more common in Dallas county. It's just not the look that many people desire.

[loves2read]

re design choice--

most builders are looking at price point--and price point in their court--
it does not pay them to offer choices that few of their clients want because they don't get a price break ordering quartz countertops even 8 times a year vs 300--

the Dallas metric seems to shriek whatever is going on in House Hunters--and most of those talking heads are looking for granite--
I don't mind granite--have it in my house--and personally don't like quartz at all but I know that in areas like California and the East Coast or PNW that quartz is more like the preferred option--or maybe soapstone or custom concrete...

Dallas is not a contemporary town--traditional mind set and traditional decorating tastes...

AND if there is any likelihood that you might try to get out of the contract, the builder is MUCH less likely to give you free rein on what your choices are even within his price point--
just fact of doing business...

There is older neighborhood in Colleyville with traditional homes for most part of the 70s/80s when neighborhood was built--but there are a couple of homes that are very dynamic, contemporary in manner of Frank Lloyd Wrights prairie-style homes--
horizontal lines, large windows, flat roofs---
love those homes

would suggest if you really want that contemporary style you really might consider getting an older ranch and remodeling--
or just see if someone has beat you to it and that remodeled home is on the market

some people share your tastes--
it is just that finding a house that reflects it is way difficult--

there is area of Dallas with many mid-century modern homes -- forget the name of subdivision--
but homes are $$$ and sell quickly

[TurtleCreek80]

Originally Posted by loves2read

there is area of Dallas with many mid-century modern homes -- forget the name of subdivision--
but homes are $$$ and sell quickly

Disney Streets and Kessler Park both have a lot of MCM's but at price points over $550k.

Your suggestion of remodeling a ranch and taking it contemporary / modern is a good one. You can definitely find some original ranches in northwest Dallas for <$350k and do a full remodel for $550k. There are a lot of those remodels happening in 75229 and 75220.

[leanne62499]

I am definitely considering a remodel...although my husband will hate the idea:-) The truth is that we do not have to move to Dallas but we would like to do so...thus I am not willing to make too many compromises. I liked the DFW area, the people I met and the amenities we found. I understand the whole economics, but I have never found the builders to be so uniform/limited in their offerings....I guess I need to get used to the idea.
Any other areas I should look into? Any particular builder that has a good reputation comes to mind?

[TurtleCreek80]

Originally Posted by leanne62499

I am definitely considering a remodel...although my husband will hate the idea:-) The truth is that we do not have to move to Dallas but we would like to do so...thus I am not willing to make too many compromises. I liked the DFW area, the people I met and the amenities we found. I understand the whole economics, but I have never found the builders to be so uniform/limited in their offerings....I guess I need to get used to the idea.
Any other areas I should look into? Any particular builder that has a good reputation comes to mind?

Do you like the looks of any of these?
North Dallas, South of 635
*This one backs up to the tollroad....$550k is quite a bit below median in this neighborhood, but here is something.
REALTOR.com - Real estate listings & homes for sale

REALTOR.com - Real estate listings & homes for sale

East Dallas
REALTOR.com - Real estate listings & homes for sale

North Oak Cliff
*This one backs up to I-30, again $550k budget is really low for Kessler Park MCM's
REALTOR.com - Real estate listings & homes for sale


Now if you had a much higher budget, you could really look at some cool modern properties in Dallas:
REALTOR.com - Real estate listings & homes for sale
REALTOR.com - Real estate listings & homes for sale
More interior pics of below if you google the address
REALTOR.com - Real estate listings & homes for sale

[leanne62499]

Thank you TurtleCreek...yup...that is my style, clean, geometric, straight lines...European style....minimalistic....I do not mind sticking with a more busy design for the exterior in order to fit within a community....but i would like to be able to get different materials in the interior. I like bamboo floors but nobody offers options like that from what I can see. I understand that my style does not appeal to everyone and that is also a concern when we think about resale:-)

[TurtleCreek80]

Originally Posted by leanne62499

Thank you TurtleCreek...yup...that is my style, clean, geometric, straight lines...European style....minimalistic....I do not mind sticking with a more busy design for the exterior in order to fit within a community....but i would like to be able to get different materials in the interior. I like bamboo floors but nobody offers options like that from what I can see. I understand that my style does not appeal to everyone and that is also a concern when we think about resale:-)

For resale purposes, you're going to have to look at neighborhoods IN Dallas (south of 635) where there is a critical mass of people who also appreciate your aesthetic. Our city neighborhoods are fantastic and offer the larger yards and mature trees that most northern suburbs don't have. Public schools can be tricky if you need them, but it can be done & found. It's also an easy reverse commute to CoCo from the 75229-20-30 zip codes, straight shot up the Tollroad. I've been doing it for almost a decade.

It would be a really bad investment to modify a CoCo home in a "generic suburbia USA" environment to your tastes and materials. You are almost certain to lose money when you sell (assuming remodeling a builder spec home) and it will sit on the market for months even in a good market.

Re: new construction, you just don't have the budget to build a custom home with a modern builder in Dallas. They all work in-town where land prices are significantly higher than the suburbs. You're looking at $750k+ for custom modern home build.