Need suggestion about the house

[househunter69]

Originally Posted by Rakin

It has high DOM because they probably started it in the MLS when they started to build it. It originally listed for $440 and they have come down.

That's a lot for a 3 bedroom, smaller 1 story that's always to 380.
But Lennar must be selling them or they would come down.

You do know 1 story homes sell for a lot more price per sqft than 2 stories? Going up 1 story is cheap footage. 1 stories also have more slab, plumbing, etc. - a bigger footprint, more costs and less sq footage.

Many older couples love 1 story homes. There is big demand usually for these homes.

Oh, that's new information. In 2 story house, the sq footage calculation includes the 2nd floor as well. It means if the 2 story house they say 2000 sq ft then there is a chance that the first floor is 1000 sqft and the second floor is 1000 sqft?

[Rakin]

Originally Posted by househunter69

Oh, that's new information. In 2 story house, the sq footage calculation includes the 2nd floor as well. It means if the 2 story house they say 2000 sq ft then there is a chance that the first floor is 1000 sqft and the second floor is 1000 sqft?

No the 1st floor is usually (not always) much larger than the 2nd because of things like the roof lines and attic space.

Usually if you see a 3600 sqft 2 store home it will have like 2400 down and 1200 up or something similar. The most accurate measurements on a home is either the Builder Blue prints or where an Appraiser has measured. There is no slab or land costs for that 1200 sqft ft where there would be for a 3600sqft 1 story home.

In TX most 2 story homes will have at least 3000+ sqft. Seldom do you see one much smaller.

Lot size restricts how large a 1 story can be and todays builders lots are very small normally. Especially a builder like Lennar. You have a lot of fixed costs like the price of the lot price spread over less footage on a 1 story home because they are so rare nowadays.

It just costs a lot / sqft to build a 1 story but they are in big demand mostly by older couples who don't want stairs to deal with. In my hood a 2 story can go for $150-160 /sqft but a 1 story goes for 200-220/sqft and sells in a heartbeat.

[albert648]

Originally Posted by househunter69

In my family, we are having a debate that a small 3 bedroom house will be enough. But recently I heard that small houses are hard to resell is it true? if yes, then what is the minimum sqft for the bigger house?

I think most people want an extra bedroom for a dedicated guest room or home office or something. 3 bedrooms without a dedicated home office space would limit your potential market to households with at most one child (two if they're willing to forego that +1 bedroom). You'll probably be safe from a resale perspective once you're north of 2700 sqft. Depends on the location though.

Also I've been told people in TX like their master bedroom to be downstairs on the main level - personally I'm the other way around (I want masters up and it's a must have) but that's also something to consider.

[househunter69]

Originally Posted by albert648

I think most people want an extra bedroom for a dedicated guest room or home office or something. 3 bedrooms without a dedicated home office space would limit your potential market to households with at most one child (two if they're willing to forego that +1 bedroom). You'll probably be safe from a resale perspective once you're north of 2700 sqft. Depends on the location though.

Also I've been told people in TX like their master bedroom to be downstairs on the main level - personally I'm the other way around (I want masters up and it's a must have) but that's also something to consider.

It makes sense. Due to Pandemic and economic conditions, I am afraid is it the right time to buy a house? Any idea would help.

[tmtex]

Looks like the typical generic Frisco home

[househunter69]

Originally Posted by tmtex

Looks like the typical generic Frisco home

Thank you. Due to Pandemic and economic conditions, I am afraid is it the right time to buy a house? Any ideas would be helpful.

[Katana49]

Originally Posted by househunter69

Thank you. Due to Pandemic and economic conditions, I am afraid is it the right time to buy a house? Any ideas would be helpful.

No one can answer that for you. So far, stimulus packages by the government have just delayed a lot of the economic turmoil headed our way. Airlines just laid off thousands of employees. That's going to have an effect on multiple sectors of the economy. Consumer spending is the number 1 driver of the economy, when you have a large percentage of the population who are laid off (~8% unemployment) and many other people who are worried they will lose their jobs in 2021, it adds up to trillions of dollars not being spent to keep the economy humming.


I will tell you my own personal situation, we bought some undeveloped land earlier this year. The pandemic had already hit, but this was a good deal and I was confident that at the least, we could begin development and hold onto it for two years and sell for a profit, even if we don't end up building a house on site. Shortly after we bought it, my company was bought out. While my job isn't in immediate jeopardy, my current compensation is. That was a wrinkle we weren't counting on, but we moved forward with plenty of equity and the ability to pay our bills for years if I lost my job. Most people can't say that. If your finances are in order and you won't be hurt too much by a potential 10-15% loss in equity in the short term, you should be fine. If your job situation is stable, then you should be ok as well. Only you can answer those questions.

[zoomInToWorld]

Originally Posted by Katana49

No one can answer that for you. So far, stimulus packages by the government have just delayed a lot of the economic turmoil headed our way. Airlines just laid off thousands of employees. That's going to have an effect on multiple sectors of the economy. Consumer spending is the number 1 driver of the economy, when you have a large percentage of the population who are laid off (~8% unemployment) and many other people who are worried they will lose their jobs in 2021, it adds up to trillions of dollars not being spent to keep the economy humming.


I will tell you my own personal situation, we bought some undeveloped land earlier this year. The pandemic had already hit, but this was a good deal and I was confident that at the least, we could begin development and hold onto it for two years and sell for a profit, even if we don't end up building a house on site. Shortly after we bought it, my company was bought out. While my job isn't in immediate jeopardy, my current compensation is. That was a wrinkle we weren't counting on, but we moved forward with plenty of equity and the ability to pay our bills for years if I lost my job. Most people can't say that. If your finances are in order and you won't be hurt too much by a potential 10-15% loss in equity in the short term, you should be fine. If your job situation is stable, then you should be ok as well. Only you can answer those questions.

Very well put.

Looks like OP did not make up his mind completely to buy or not.

Market is not great. It is definitely not great time to take risks at this time. Because nobody knows how it is going to be next few years. Nobody has crystal ball. But "risk" is relative term.

Write down everything on the paper. Prioritize them . What is important to you? How much cash balances you have in case if there is recession? How stable is your job etc??

Somebody was pointing out about resale value of house?? But i dont consider resale value as primary factor. If 2000+ sq ft house is affordable and enough for you. Then go for it. Why you buy costly house and pay unnecessary taxes when you dont need it . Just because of resale value, dont buy. Bigger house then bigger taxes, bigger mortgage payments and bigger maintence etc.

Why do you think Frisco ISD is only place where your kids can get better education? For me i think Frisco ISD is very good but houses are over priced. Frisco ISD houses are atleast 100k to 200k more compare to other neighborhoods.. Plano ISD, Prosper ISD , Allen ISD, Coppel ISD , southlake ISD are also in excellent category. If you agree with me, expand your search.


So.. buy something what is enough for you and what you are comfortable with...

Let me give my example itself. I bought house just before the pandemic. I bought house what i am afforable with.. I know economy situation not very clear for next 1 or 2 years. But it does not affects me at all because i considered all unexpected scenarios before choosing house. I am not rich and nowhere near to that. But i was very clear what i want. I was clear what i am affordable with.

My house was in constuction when pandemic hit. I could have come out of contract. But i did not do that. Because i dont want to delay in buying house. Because my kids are growing and i needed bigger space. So bought it

(Market value of my house increased more than 50k. I dont have a clue why it is increased. Stock market, housing prices everything going in reverse.)

Looks like DFW house prices continue to grow even during recession. Thats my guess. Nobody knows for sure.

[Rakin]

Originally Posted by zoomInToWorld

(Market value of my house increased more than 50k. I dont have a clue why it is increased. Stock market, housing prices everything going in reverse.)

Looks like DFW house prices continue to grow even during recession. Thats my guess. Nobody knows for sure.

Just the price of Lumber to frame a house has gone up $12-15,000 in the last 6 months.

That's just the wood.

[zoomInToWorld]

Originally Posted by Rakin

Just the price of Lumber to frame a house has gone up $12-15,000 in the last 6 months.

That's just the wood.

I kept on hearing that builders are backing out of new projects because land cost for building houses is becoming too expensive.

What is the situation of commercial real estate??