Better Place to Purchase?

Question

Sorry this will be a little long...

I say never buy the biggest/most expensive house on the block.

That said - I am looking at a home for myself (to live in - not a flip) that is a complete renovation (about $100k in renovations). Everything from the pipes outwards has been redone. They added on a bedroom and extra space to the house, making it a 4 bedroom (in a neighborhood of mostly 3 bedrooms), and the most square footage of 99% of the houses in the neighborhood.

But it's being listed at way below the other going prices in the 'hood per square foot. Asking is $210/sqft (2800sqft), and the majority of the other houses are asking $255-280/sqft) for about 2000sqft. It does back up to a major, heavily trafficked road, but has an 8foot security fence, and road noise is somewhat dampened by a corner store behind the house. Backyard is somewhat small - no room for a pool). House is on the end of a cul de sac street in a family friendly neighborhood.

Asking: $599,999, Been on the market since mid-April.

Neighborhood: Briar Forest, zoned to Briargrove Elem (good school), family friendly neighborhood

Around the Neighborhood: in the Galleria, so tons of restaurants and shopping nearby

I'm just worried about resale value in the future because we don't plan on staying in the area for a long time as my husband works on the east side town in the refineries. We have to be on the West side of town for then next couple of years due to my daughter's school (located on Westheimer and Fountain View).

I can find deals for other people left and right, but when it comes to buying MY own house - I let my judgement get clouded with emotions and sentimental stuff.

I'm also looking in the Oak Forest/Garden Oaks area, just to help my ease my husband's commute some, and I know home values have been going up there steadily.

So would you buy a home in the Galleria area (specifically Briarbend/Briargrove area) or would you go with the Oak Forest area?

Thanks!

Shahriar Khan · Answer

@Laura Hafer i would pick Garden Oaks /Oak forest and Briar Forest . Typically upside happens when area is land locked and surrounded (at least 2 sides , possibly 3 sides) by high priced properties. With that view, Briar Forest already had that phase and have reached that peak so property values should stay flat plus inflation. So your play could be how broken of a house you can get so that you can get a better value when you fix it and still come lower than market price. On the other hand Garden oaks is being pushed up by Heights overflow and locked down on 2 end (610 and 45) thus game plan could be how can you pay market value but position myself either a good place on the neighborhood or find a run down at a market price and create value via appreciation. Run some comps and then do a price scatter plot with time and you would see those trends

Just my 2 cents and happy hunting

Vijaianand Thirunageswaram · Answer

@Laura Hafer How you doing? Nobody has responded to you post. Let me try.

I know the area. It's very good one and gone up in the last few years. It has good schools as well. I don't have the property address so i can really give my detail analysis. Looking at your points, you have taken in to account lots of things. Those things matter and that's why you are getting for that price.

People are not going for it and they want to sell it. It might be same case when it comes for you to sell it as well. If you can bargain bit more and make upgrades to the house, you might change the perception of the people to buy your house later. It also depends on the market condition at the time too. Too many variables, I am sure many don't want to take chance. It also depends on whether you are thinking the deal as homeowner or investor.

I know Garden Oaks area close to 610 and W34 st. Good community too.. Don't want to confuse you much but take decisions both from family and financial front...

Hope it helps.

Better Place to Purchase?

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