What is going on with all of this 400K homes listed at 600K (Dallas: sale, 2013)

[loves2read]

Originally Posted by avayan

I have "acquired" the money, what I have not "acquired" is the lunacy to pay 100K+ more for something that does not have that kind of value. Will let others "enjoy" from a 450K home which they were able to acquire for the lightning deal of 600K ;-)

And you might wait forever with that mindset
You think you are being cheated by inflated pricing of overvalued property
That is problem lot of house shoppers have
Do you have much luck taking that attitude to the dentist or the doc-in-the-box or a car mechanic???
You are living in an area with high population growth in mid income to upper income groups...
You are fighting the tsunami at this point
My son and dil sold their first home in Denton about 6 mo ago
Sold first wknd for like 19K over ask, multiple bidders
They moved to Dallas and are renting
Say they are waiting for prices to stabilize but think that might be bad idea because rates are going up next yr
So dont think future will mean lower payments

[UnfairPark]

Originally Posted by EC2005

70% in Coppell sounds a bit high. I would have guessed 30% to 50%.

Sure, Zillow may make you think a house is worth more than it is. The truth comes when you actually place a house on the market.

Exactly. Even for Coppell and for under $250k market, I doubt 70% appreciation in 4 years is realistic.

[UnfairPark]

Lesson for others. In a seller's market, if you are staying in same metro area and just upgrading or downgrading then you don't sell your existing home until you close on your new home. Well, unless you enjoy the hassle to move, pay rent, stay in limbo and uproot your family or you aren't financially stable to carry two mortgages for even few months. In that case you shouldn't be thinking of upgrading anyways, no matter how much your tastes evolved since you bought that house.This way you can take all the time you need for all the stars to line up for your ideal home.

[EDS_]

Originally Posted by avayan

I have "acquired" the money, what I have not "acquired" is the lunacy to pay 100K+ more for something that does not have that kind of value. Will let others "enjoy" from a 450K home which they were able to acquire for the lightning deal of 600K ;-)

If your perceived valuation of properties is lower than transactors decide you shouldn't participate. However, you don't get to decide pricing or valuation for other people. In other words you don't get to decide if homes for sale have increased value or not.

CoCo. markets in particular are only going to tighten overall - the state demographers office is confident that CoCo. will at least double in population over the next few decades.

So your choices are to pony up and buy something, maybe yield on lot size?
Rent. Although, renting over the long term is virtually always a bad financial move relative to buying - this isn't personal opinion but generally settled fact backed up by mountains of data. Granted there is bundled self selection distortion in this data but owners have average net worths roughly 60x that of renters.
Move.

Good luck.

[aexchange]

Originally Posted by avayan

I have "acquired" the money, what I have not "acquired" is the lunacy to pay 100K+ more for something that does not have that kind of value. Will let others "enjoy" from a 450K home which they were able to acquire for the lightning deal of 600K ;-)

These kinds of statements always make me laugh. The market dictates the price of an item, not the buyer. When you go to the grocery store, they determine that it costs $4.50 for a gallon of milk. You can either choose to pay the $4.50 or not drink milk, but you can't say that milk used to cost $3.00 a gallon in 2005, and I'll wait for prices to fall.

Honestly, $300K now is the new $180K from 10 years ago.

[UnfairPark]

I would never assume that all other buyers/investors are stupid and I'm the only clever species left in the market. It's just like sayin that Highlandpark is so overpriced, I'll not follow these suckers, I'll buy the exact same house in Celina for 1/8th of the price and move to HP when it goes down. Good luck with that!

[serger]

Yes, the prices will continue to rise indefinitely, lol.

Let's see at 20% a year, 10 years, your 300k starter home becomes:
300k * 1.2^10 = 1.86 mil.

Now the good thing is, since the taxable value increase is limited to 10%, you'll be paying taxes on only 780k or so.

[beerandon]

Is this just temporary and/or an investment for you? If you're looking for your forever-home, then I think you should consider buying your dream home (within budget) and not worry about it so much. Just like the stock market, if you sit on the sidelines waiting for a downturn, there's a greater likelihood you'll just miss out.

[Katana49]

When we sold our home in McKinney, we got $350k for it. It wasn't a bad home, by any means. It fulfilled almost all of our wishes. There were just a few things we wanted that we didn't have, a larger yard to put a pool in, or a community pool, and a true 3 car garage, not a tandem style.

We figured to get what we wanted, we'd probably have to go up to $400-425k.

We were wrong.

Most of the homes we looked at in that price range, we felt our current home was better! We had to raise our budget to $500-550k to find a home that met our criteria. Now that same home is worth $100k+ more than what we bought it for.

Aexchange has it right... $300k buys you what $180k did 10 years ago, maybe even 5-6 years ago.

[BigDGeek]

Originally Posted by avayan

Yes, I did. It is a little bit more complex than that, though. My family has an "acquired taste" so homes have to be gorgeously pretty and desirable. Back when we started looking in july 2015, there was plenty of 450K homes to look at. Later, they all became 500K and now they are in the 600K.

Although I started to look in mid 2015, we didn't have our home ready to sell until August 2016. The house sold in a week, but now it seems we are in quite the pickle...

Oh well. What do you want us to do about it?

A house is "worth" what someone will pay for it. Just because you don't think it's worth $600k doesn't mean someone else won't pay that much for it, or that it won't appraise for that.

It sounds to me like you planned your move very poorly, which wasn't a wise thing to do in a hot seller's market.