Any home sellers have input on the real estate market? (Houston: days on market, houses)

[fashiongal]

Our current home in Sienna (we listed it at 485k) went 20k over list. I thought when our realtor wanted to list it at 485, she was nuts. As it turns out, we should have held out for more. We would have never, ever listed our home if we had known what we were looking at in finding a new home. We are close to retirement, so we are looking for a 300k home (easier on taxes and also prefer an area with a lower HOA). It's nearly impossible. The homes at 300k or below are going in a day. We recently put an offer on one and lost out. We offered 25k over list - someone beat us out by offering 50k over list. Warning: before you sell your house, either find another one to be built (so you don't get caught up in a bidding war), or make sure you know where you are going. You might also consider a lease back clause in your contract so if you don't find anything you won't be facing two moves (one to an apartment because you can't find anything) and another to your next home. It's vicious out there.

[Jtxg]

Originally Posted by fashiongal

Our current home in Sienna (we listed it at 485k) went 20k over list. I thought when our realtor wanted to list it at 485, she was nuts. As it turns out, we should have held out for more. We would have never, ever listed our home if we had known what we were looking at in finding a new home. We are close to retirement, so we are looking for a 300k home (easier on taxes and also prefer an area with a lower HOA). It's nearly impossible. The homes at 300k or below are going in a day. We recently put an offer on one and lost out. We offered 25k over list - someone beat us out by offering 50k over list. Warning: before you sell your house, either find another one to be built (so you don't get caught up in a bidding war), or make sure you know where you are going. You might also consider a lease back clause in your contract so if you don't find anything you won't be facing two moves (one to an apartment because you can't find anything) and another to your next home. It's vicious out there.

Wow, that's truly unlike anything I've ever experienced, granted I've lived in Fort Bend County for most of my life. I just can't imagine $50k over list price on a $300k home

Fortunately, I won't be needing to buy another house once this one sells. I don't think I could stomach being a buyer in this market LOL

[fashiongal]

Originally Posted by Jtxg

Wow, that's truly unlike anything I've ever experienced, granted I've lived in Fort Bend County for most of my life. I just can't imagine $50k over list price on a $300k home

Fortunately, I won't be needing to buy another house once this one sells. I don't think I could stomach being a buyer in this market LOL

You are lucky!!! Being a buyer in this market sucks big time! I'm not familiar with the Katy area so I don't know how in demand it is, but ask for the moon and you'll probably get 20k over! You can always reduce the price if necessary. But I think unless it's a really undesirable area, you will get above even a high asking price.

[NTexas2010]

Originally Posted by Jtxg

Yea it's nuts out there (apparently). For me this was a very short-term purchase and I honestly planned on losing money after closing costs and Realtor fees...does not look like that is the case *fingers crossed*

(Potential) congrats on a (potential) gain. Bear in mind, if you lived in this home for less than 2 years before the house is sold, the proceeds of the sale may be subject to taxes. We faced a similar situation where we bought a home in Bella Terra in April 2013 and sold in March 2015. At closing, we were asked if we had lived in the home for at least 24 months and I disclosed we had only lived there just under 23, so the IRS was notified as a result of that disclosure.

With that said, in our situation, the closing costs outweighed the "gain" in the sale of our home, so there was no impact to our taxes for 2015.

More information via the IRS website:

https://www.irs.gov/publications/p523

[timtemtym]

We bought last summer and we're hoping to list it this summer (Houston isn't right for us). I'm seeing things in our neighborhood (Montrose) selling for crazy prices. There's a 48 year old townhouse across the street from us that just was listed at 40k lower than what we paid for ours last summer (Ours was brand new and not an attached home, and is about 500 square feet bigger with 2 more bathrooms). That townhouse sold within a week of being listed. The market is crazy right now.

I'm hoping we can at least get back what we paid plus the realtor commissions to break even. We saved 48k in rent from what we were paying in LA for a year. If we can get our money back then we'll be super happy. We also saved 25k in state income taxes that Texas doesn't collect so that helps too.

I can't imagine trying to buy a home in Texas right now. Last summer there was a ton for sale and homes were sitting on the market for months. What a difference one year makes.

[detachable arm]

It's a new paradigm, and everybody who doesn't buy now will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $15,000,000 starter home in 15 years. They will live in tent cities, and Hondas.

This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.

[mojo101]

have we heard this before?
UNTIL 2008,EVERYONE who wants a house can buy a house from the builders,HUD picked up 10% for a house less than 2 years old,many who cant afford one buy any way,then 3-6 months later,FORECLOSURE 1

[Htown2013]

Originally Posted by detachable arm

It's a new paradigm, and everybody who doesn't buy now will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $15,000,000 starter home in 15 years. They will live in tent cities, and Hondas.

This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.

[Jtxg]

Originally Posted by NTexas2010

(Potential) congrats on a (potential) gain. Bear in mind, if you lived in this home for less than 2 years before the house is sold, the proceeds of the sale may be subject to taxes. We faced a similar situation where we bought a home in Bella Terra in April 2013 and sold in March 2015. At closing, we were asked if we had lived in the home for at least 24 months and I disclosed we had only lived there just under 23, so the IRS was notified as a result of that disclosure.

With that said, in our situation, the closing costs outweighed the "gain" in the sale of our home, so there was no impact to our taxes for 2015.

More information via the IRS website:

https://www.irs.gov/publications/p523

Yes thanks, I am aware. I think after all costs associated with selling and some improvements (CPA said I can deduct them from my gain) I'll have a small short-term capital gain, nothing crazy. 100% better than losing money on a sale.

[NTexas2010]

Originally Posted by Jtxg

Yes thanks, I am aware. I think after all costs associated with selling and some improvements (CPA said I can deduct them from my gain) I'll have a small short-term capital gain, nothing crazy. 100% better than losing money on a sale.