Bimmer32

1. Is it a good time to buy a used custom home?
2. What are some of the not so obvious "gotchas" when involved in a short sale from a buyer's perspective?
3. Is it a bad time to sell a house if one is buying a new for upgrade?

Thank you for your comments.

bonehead

Answers really depend in part on where you are looking. Parts of Texas are actually fairing quite well in this horrible market. Def. a good time to buy in most markets, particularly Vegas, Arizona, Florida. But while it's good for buyers now, the question is will the economy sink even lower to where a good deal now may be a great deal in another 12-18 months.
As far as short sales, the best advice I can give is find a realtor that has vast experience in these transactions. Deadlines need to be met and 'gotcha's' as you say may not be readily apparent. One, for instance, is any outstanding liens on a home. These will become your problem if you purchase the home.
The answer to your third question is opposite to the first. Again, depends on what market you're talking about. Some are doing better than others, but it's terrible everywhere. Unless you're extremely lucky, expect your home to be on the market on average 6 months before you're able to sell it. This will only get worse over the next year.

I'm in the same boat as you. I'm trying to unload a home in the worst housing market in 10-15 years while trying to buy a home in one of the hardest hit cities in America (also a short sale).

Good luck (I sure as hell need it )

lightfytr

1. Great time to buy any home if the price is right... Search around because even custom builders are selling for below value (in the Texas area).

2. Short sale issues, just making sure you are getting the best deal. Do not buy on impulse in today's market there is so much inventory, you shouldnt have to settle (on anything).

3. Question is can you sell your house, if you can I would definitely upgrade. The problem most are having is selling right now, it is a buyer's market that means they will offer you much less than you have in mind (because there is so much inventory).

Most of the brand name builders are giving so many incentives to buy new right now so just be patient the ball is in your court!

silver2000stang

Honestly, it is always a good time to buy. Right now a short sale is a very good thing for a buyer and seller. The seller gets out of a mortage that they cannot pay without paying the whole thing off and the buyer gets a home for less than what was paid for it previously. The buyer gets a clean title and if there is a down market in their area, hopefully, when it rebounds they will see substantial increase in value. I work with short sales, sometimes they can be very lengthy if the seller has not gotten approval from the lender. If you have a home to sell, there are still buyers out there in every market. You just have to price your home right. Don't get caught in the trap of thinking it's buyer's market for the home your are buying and then asking "seller's market" pricing for your home. Remember, the equity is going to be in the short sale home. Price your home right and it will still sell quickly.

Good luck in your home decisions, and if there is anything that I help, just PM me.

Thanks,
Brian

Bimmer32

I'm in the Houston market, and the short price on the new house is about 26% below the sold price at the end of 2006. My old house is free and clear; I've ran a couple of different CMA and it looks like I can sell it for what I bought it for back in 2001 after all cost and fees. But I'm still nervous since it's a buyer's market. While I don't have to pay a 2 mortgages, I do have to pay taxes (high in Texas) every month the old home is not sold.

bonehead

No offense, but that's a load of crap
It is most definitely a buyer's market. Of course I could sell my home if I 'price it right'. Meaning selling it for a substantial loss. How is that to my benefit? My home has been on the market for about 4 months. One offer came in a few weeks after being on the market. She lowballed me. I countered, she refused. At the time, I felt great about it b/c I would have just about broken even with her offer. Now, I'm kicking myself everyday for not taking it since I'll soon be stuck with paying a mortgage on a home I no longer live in.
I can't even rent the damn place out. I've had to lower my rental price twice to the point where I can't even cover my mortgage. Problem is this market is SO BAD that NO ONE is buying anything. So what do they do? Rent. Now the rental market is glutted and there's competition there too.

This whole situation sucks. The only good that may come of it is this short sale that I've been patiently waiting for. 3 months and counting and no end in site.... :thumbsdown:

bonehead

I feel your pain, man. At least your home is free and clear. Taxes or not, at least you're not paying a full mortgage on a home. Are you moving just for an upgrade, or do you have to relocate for job, etc.? If it's the former, at least there's no pressure. Everything is on your side. Be patient. If the short sale doesn't come through, then just move on. Don't rush into a purchase.
I have to move in a few weeks for a new job. I would otherwise never put a home on the market in today's economy. No way.
Good luck.

silver2000stang

You are the statistic(no offense) that proves it is better to make that first offer work unless you are ridiculously far apart, because you now have a house on the market longer, have to make more house payments, pay insurance, etc... all the carrying costs until another offer comes in, if it comes in. I didn't say it wasn't a buyers market. But if you price the home right it will sell. If that means in your market you have lost value, then that's what you have to do.

When is the best time to buy anything? When it's onsale! Right now homes are onsale, either short sales, foreclosures, or sellers who have room to lower their price to sell the home. I bet if I checked your market there are still homes selling, there is just a huge supply and buyers are having a larger choice. That is really what a buyer's market is. Very simple supply and demand. You had to lower your price to compete with all the other homes out there. Did you ever think to do something like go down to Best Buy and buy a 42" Vizio(any cheap one will do) flat panel and advertise that a a freebie, does it have all the appliances? Buyers tend to go for the homes that have washer/dryer/refrigerator/stove/etc...already there. These are some of the things that you can do rather than dropping the price and looking as desperate as you are.

mrfva

As others have mentioned, it really depends on where you're looking. Research, research and more research is the key. It's definitely a buyer's market, but some sellers aren't as desperate as most, especially the true custom builders. I'm not referring to your Toll Brothers luxury builder who categorize themselves as a such by allowing you to make changes to a pre-defined home layout, changing options here and there etc. I'm talking about true custom builders that let you personally work with an architect to design your house from the ground up to choosing every finishing materials of the house etc.

We've got 2 custom builders finishing up homes in the last 2 lots of the neighborhood. By the time they're completed, I imagine one will be listed around $600k+ (Denton pricing) which would be $1.2m in Dallas, and ~ $1.8m to $2.4m in CA/NY. The other house was commissioned by a buyer, which I'm estimating around $700k (Denton pricing), which would be $1.4m in Dallas, and ~ $2.1m to $2.8 in CA/NY.

Best of luck out there...