Dallas home bidding wars 2021 (Plano, Irving: home search, purchase, tenants)

[stargirl007]

Originally Posted by stargirl007

This is just crazy but I believe it. I live in still a fairly new area, my neighborhood is built out, but there's still a lot of construction surrounding us -- most coming into our neighborhood are all CA/otherwise relos. A small, small handful of 'relocating DFW locals' like us.

I have family that are in the process of building in a community near us, they were able to get one of the pre-sale opportunities. Now that their community is open, the builder changed the floor plan they picked to require a media room (it was previously optional/upgrade) and now have raised the advertised price $75K more than what was listed when they selected and went under contract. This is maybe a 3 month timeframe difference.. it's insane.

I went back and looked at this community in question this morning online. They adjusted their pricing again for February, I'm assuming as we head into the spring market. Prices were raised another ~$25k or so, so now our family members home advertises for $100K more than when they had went under contract with this particular builder. I don't mean to be off topic, but in a new build situation -- what happens, if anything, when they get ready to close? Does the builder have any ability to force a price adjustment, or are they committed to the contracted price?

[Rakin]

Originally Posted by stargirl007

Does the builder have any ability to force a price adjustment, or are they committed to the contracted price?

Both parties are committed to a price by the contract. Legally they do not change it.

Could some low life builder try? Possibly but I've never seen it done.

I've seen many cases where prices have gone up 5-10% from the time 6-9 months the contract is signed to closing and it's just a great deal for the buyer.

[denebj]

This is what is happening to us ..
We listed recently ... Got 20 showing the first day of listing ... Some offers are coming in .. This will be interesting to see if we get some offers above asking price ..


Then we are currently buying new, between the time be bought in and now (less then 2 month) our floor plan price increased by $40k !! This is insane. It could not have been a better timing for us !

[place]

Originally Posted by place

Finally we were able to get into contract.. We put offers on 2 homes .. 1 we lost and in 1 we got thru..

Listing 1 :- Location 1 ; LP=x; Offered x+12K; Got the offer
Listing 2:- Location 2; LP=y; Offered = Y+5K; Sold price = Y+50K

Some of the strategies we learnt


1. Trying to give the first offer
2. Atleast start with little above whats the list price
3. Play around appraisal contingency; We waived partial initially and when we aggressive we started waiving fully and reducde down as most of the homes are getting listed with no hope of getting appraised
4. Pay Title fee
5. Higher options fee
6. Higher EMD
7. Giving no contingency offer

We tried all of these in many offers
the one which yielded success for us is giving first offer with full waiver on appraisal.

We kept a rule of thumb; Our Max offer price should not exceed 15%-20% more than county appraised value depending on additions in home
for ex. if a home is appraised for 230k and listed at 270K we will not go beyond 280K

Good luck and continue to pour your responses

One more point which i missed is .. we gave few offers with flexible closing dates and upto a month of free lease and then paid lease

[turf3]

Buying something when you want to buy it worse than the seller wants to sell it to you, is never a good situation. These aren't negotiation strategies, these are capitulation strategies.

[nsumner]

Originally Posted by stargirl007

I went back and looked at this community in question this morning online. They adjusted their pricing again for February, I'm assuming as we head into the spring market. Prices were raised another ~$25k or so, so now our family members home advertises for $100K more than when they had went under contract with this particular builder. I don't mean to be off topic, but in a new build situation -- what happens, if anything, when they get ready to close? Does the builder have any ability to force a price adjustment, or are they committed to the contracted price?

This is why verbal agreements can't be enforced. No, the price contracted is what they will close on whether the prices go up or the market crashes.

Naima

[36183]

Originally Posted by denebj

This is what is happening to us ..
We listed recently ... Got 20 showing the first day of listing ... Some offers are coming in .. This will be interesting to see if we get some offers above asking price ..


Then we are currently buying new, between the time be bought in and now (less then 2 month) our floor plan price increased by $40k !! This is insane. It could not have been a better timing for us !

Looks at this plan in Prosper, +$140k in 4 month and 6 days.

https://www.zillow.com/community/lak...77711486_zpid/

[36183]

Most builders increased price in the last two month but the range of price increase varies a lot. Some by a few thousand, some by 40K to 50K. What is behind these increase? What kind of market analysis (or strategy) they have used to support the increase? Or some builders are just a little more aggressive, and at the end of the day it will be even out.

[KerrTown]

Originally Posted by 36183

What is behind these increase? What kind of market analysis (or strategy) they have used to support the increase? Or some builders are just a little more aggressive, and at the end of the day it will be even out.

Wait until the market crashes! Austin is in much worse shape as it's the #1 city to relocate to during the pandemic.

[Rakin]

Originally Posted by 36183

Most builders increased price in the last two month but the range of price increase varies a lot. Some by a few thousand, some by 40K to 50K. What is behind these increase? What kind of market analysis (or strategy) they have used to support the increase? Or some builders are just a little more aggressive, and at the end of the day it will be even out.

Costs have gone up like crazy the last 9 months. Just the cost to frame a normal house has gone up $15-20,000 alone. Concrete demand is up 40%.