Investor · Richardson, TX · Member since 2014 · 3 posts · 3 votes
Hi,
My wife and I are looking to buy a house in Irving Texas relatively close to Dallas metro area. We have looked at many new developments and noticed that they are trying sell at $20-$30 more per square foot than well maintained older homes in the same area. What is a reasonable premium per square foot to start negotiations. We want to start at a 10% premium. We are flexible with our time frame so want to get the best opportunity possible. Is this a reasonable plan? What are the profit margins for newly constructed home.
yes, you're going to pay a premium for new construction. How much above is really dependent on the quality of construction and the level of finish out. I don't know whether you have school aged children or not. However, because of the generally poor quality of the schools, I would not purchase in Irving. Also, there are fully rehabbed properties with all the bells and whistles in areas of great schools, which makes possible resale later much easier.
Also, there is a lot of new construction, spec built homes, in areas with great schools that are sitting on the market with falling prices, because they were overpriced with those new construction premiums. The bottom line is, new construction or not, prices have to be able to be supported by comps, and you have to ensure the same desirability factors are still there.
I recently checked some new construction in Dallas Fort Worth area and in a decent area, the price is around $200,000 for a brand new 3-4 bed, 2 bath single family home.
I am also curious as to what other members respond to your thread.
yes, you're going to pay a premium for new construction. How much above is really dependent on the quality of construction and the level of finish out. I don't know whether you have school aged children or not. However, because of the generally poor quality of the schools, I would not purchase in Irving. Also, there are fully rehabbed properties with all the bells and whistles in areas of great schools, which makes possible resale later much easier.
Also, there is a lot of new construction, spec built homes, in areas with great schools that are sitting on the market with falling prices, because they were overpriced with those new construction premiums. The bottom line is, new construction or not, prices have to be able to be supported by comps, and you have to ensure the same desirability factors are still there.
Yeah. We definitely learned that level of finish and other features can make a HUGE difference. We looked Sunday at a couple of houses we are considering as a new home for ourselves. There was a $15/sq ft difference on the higher end finish home and that is after a $25k price reduction.
@Hattie Dizmond different parts of Irving fall under 3 different school districts - Irving ISD, Coppell ISD and Carrollton-Farmers Branch ISD so a blanket statement "generally poor quality of the schools, I would not purchase in Irving" is far from accurate in my opinion... not trying to pick a fight just saying :) Coppell ISD annually ranks amongst the highest.
@Gautam Venkatesan No fight to be picked! I should have made a more precise statement...I would not purchase a property in the Irving ISD. I will stand behind my statement regarding the generally poor quality of Irving ISD schools. Coppell is an excellent district. Carrollton-Farmers Branch is tolerable, but I would definitely take it over the Irving ISD.
I have recommended to several folks the virtues of the Coppell ISD.