learning about the house market (Houston, Frost: buying a house, neighborhood, buying)

[yes_for_rain]

so we just recently started looking at the house market and to tell you the truth we have a hard time understanding it. For example, take the zip code 77024. Some of the houses are on the market for long time there. While others go very quickly. For example, this house:
12322 Perthshire, Houston, TX 77024 - HAR.com
What makes this house a good deal compared to others? What to look for when buying the house? Completely lost

[EasilyAmused]

Originally Posted by yes_for_rain

so we just recently started looking at the house market and to tell you the truth we have a hard time understanding it. For example, take the zip code 77024. Some of the houses are on the market for long time there. While others go very quickly. For example, this house:
12322 Perthshire, Houston, TX 77024 - HAR.com
What makes this house a good deal compared to others? What to look for when buying the house? Completely lost

That house is on the cut through street from Benigus to Gessner. Highly traveled. Which places it under 700k along with it being only a moderate remodel.But it's livable and people want in the schools so it sells. Probably the ones you are looking at that are "sitting" are in a worse location, have foundation problems, or in need of being torn down...but those are still near 600k. The only ones that I see "sitting" are mega-million dollars homes, busy corner houses, or those that are just too big and old to mess with and the owners aren't ready to price at lot value.

[yes_for_rain]

it is on the busy street and not upgraded that much. It should not then been sold in one day but it was

[EasilyAmused]

Originally Posted by yes_for_rain

it is on the busy street and not upgraded that much. It should not then been sold in one day but it was

Sometimes people "pocket list" a house and it doesn't hit the MLS until it has a contract. That way the owners don't have to go through the process of showing the home to lookie-loos or unqualified buyers. Those that view the house are seriously ready to buy in that area and are working within the realtor network. It's happening more and more lately.

It's a HUGE pain to have a house on the market.If the showings are cut down to certain buyers who want a certain type house in a certain neighborhood and are qualified, it makes the selling process less stressful Especially if you don't HAVE to move. We've had several in my little neighborhood that have been pocket listed. I wouldn't do it any other way after seeing how easy it was for them.

[yes_for_rain]

I see some houses that are sold withing days of appearing on HAR....I guess the question is why people buy a house like that (older and on busy street) for that much money if they can buy much better house somewhere else...is it investment value?

[EasilyAmused]

Originally Posted by yes_for_rain

I see some houses that are sold withing days of appearing on HAR....I guess the question is why people buy a house like that (older and on busy street) for that much money if they can buy much better house somewhere else...is it investment value?

Well, it's actually in pretty good shape with a good pool. If it wasn't on a busy street it would be closer to 700k. They apparently had a budget and wanted that area or Frostwood and this was the best one they saw.

Where else in 77024 can you get a better house for 635? That's actually pretty clean.

[yes_for_rain]

in my book buying a house === investment and houses like that just do not seem like a good investment (break too often, busy street, old)....or am I wrong?

[EasilyAmused]

Originally Posted by yes_for_rain

in my book buying a house === investment and houses like that just do not seem like a good investment (break too often, busy street, old)....or am I wrong?

It's more about the property value over the value of the dwelling. You are buying the location, commute times and good schools. It's just like any other big city.

If you knocked down that house, the lot would still be 500k.

People who want the house over location usually buy farther out.

[Maybe So]

Originally Posted by yes_for_rain

I see some houses that are sold withing days of appearing on HAR....I guess the question is why people buy a house like that (older and on busy street) for that much money if they can buy much better house somewhere else...is it investment value?

If you mean why don't people buy a house for that much in a different area - ie. other than 77024 - it is because of the schools. The area public schools help drive up house value.

[City Love]

Originally Posted by yes_for_rain

in my book buying a house === investment and houses like that just do not seem like a good investment (break too often, busy street, old)....or am I wrong?

Those homes do require more maintenance. But like EA said, its more about the location of the home, not the home itself. The nicer the home, the more value it will add over the land itself. Like any big city, the closer you are to good schools, amenities, and more, the more expensive the land will be regardless of a house sitting on it or not. That's exactly what's happening in 77024 and other areas of town. The land value keeps going up because of the location. There are many parts of town where buying an empty lot with just dirt will cost you much more than a brand new 5k sq ft upgraded home in the suburbs. It's all about the location.