Dallas Home Builders Are Getting Desperate
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- čas přidán 1. 08. 2024
- As new construction inventory continues to pile up in Dallas, home builders and sales consultants are becoming increasingly desperate and intense in their interactions with customers. In this video, we expose the aggressive tactics builders are using and explain what you need to watch out for. We'll also provide valuable tips on how you can proactively prepare and protect yourself in this high-pressure market. Don't get caught off guard-arm yourself with the knowledge you need to navigate the Dallas new construction market.
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How can folks in Dallas get approved to buy a $350,000 house with average household income of only 55,000$?
Just be above average to buy a house. If you are at average or below, work on your career and rent an apartment
Good advice!
Great question!
Because banks dont really care about your finances.
@@elingedgar Then there’s something wrong with the lending practices. I keep hearing about folks getting a house and they’re telling me it’s only 275,000 or it’s only 350,000$ and I know they don’t make that much.
Thank you for spreading knowledge✌️
We are experiencing this so much firsthand!
Lower the price of new houses. Lower the salary of the CEO. At a certain price point a buyer and seller will meet.
Not sure about the CEO part but home prices are coming down some. The big push is discounts through incentives though. Lots of offers there and many times it is deceptive because they are impossible incentives. Oftentimes the buyer doesn’t realize unused incentives are voided and it gets lost easily in the contract pricing. Suddenly the buyer is like wait, where did my 40k go? Well, it was subject to a 6% cap and anything not used is lost.
@@WendyPannellPlease stop it. The average household is unable to afford the current prices.
insurance premium is playing a bigger part of this
What does a CEO’s salary have to do with the price of a home?
@@daveymcc1421👈😂 stop what? She’s right, derp. Just because your Taco Bell drive thru job won’t allow you to afford a home doesn’t mean you know what you’re talking about.
Last year in Denver houses were moving within 30 days. Now the house up the street has been on the market for five months!
That’s true in many areas here as well!
just saved this video. this has so much good information
I’m so glad to hear it!
Great information!
Thank you! I love hearing that!
Thanks for the info. I used the Collin county tax machine and it said basically $15000 a year on a $600,000 home. I put in I am 100% VA disabled and it still showed the tax. Shouldn't it be Zero. I don't pay any property tax now due to being 100% rated.
Interesting! I wonder if the estimator doesn’t know how to handle the concept of complete exemption?
@@WendyPannell It is on there.
Thanks for a great video. I know you had said often but a reminder to new viewers never use the builders agent they work for the builder not for you the same w the builders inspector. Buyer needs an independent agent for them. I value mine for my preowned home. She did an excellent job.
Great advice! Thanks!
Its like the housing market has become the same as car market but worse. Marketing tactics costing people thousands without help from someone who knows what's going on
It gets confusing and high pressured fast. One of the worst things I’m seeing are incentives being offered that aren’t even possible.
They are deathly afraid to break with current market values when they do the downward appraisal spiral will begin and go on for 5 to 7 years
I'm not sure the Fed would go that long without lowering rates. People buy so much according to their budgets and not the specific price - once rates go down prices typically go up. 😐
Nice video, I have subscribed. Thank you
Awesome! Welcome to the channel!
Have you done a video on who builds the best bones of a house?
I've done many individual builder reviews but I haven't done one where I focus on the best bones. Ones I've been impressed with are all on the upper end side: Tradition, Normandy and K Hov. That's a good question - the bones. When people ask me about the best buyer overall I'm never sure how to respond. For example, Tradition doesn't have great terms on their home warranty. Normandy has both the escalation and convenience clause in their contracts and.K Hov has a $350 per day late fee if you can't close on time. Good in some respects, not so good in others!
@@WendyPannell Energy/low blower door reading/insulation and 2nd flooring base layer are important to me.
I hope you can be my realtor when I'm finally ready to buy my home. Great content as always!
Thank you so much!
Any thoughts about the change in buyer agent commission, no longer being paid by Seller, after August 17 2024?
Yes, plenty! I made an entire video about the NAR settlement. It sounds like making another may be in order with August 17 right around the corner. Here’s the link to the one I made a few months ago:
5 Critical LIES You Must Know About The NAR Settlement
czcams.com/video/7KuBYfHUGrM/video.html
I'm getting the exact, I paid my earnest deposit and signed my contract and I'm having to chase my builder for information on whats next. Seriously about to get a refund.
I hope things get better! Getting a refund can be tough if there's no reason in the contract to support it.
Choose builder wisely there are reputable builders. We choose Taylor Morrison so far we pre-qualified and put the deposit and signed the contract , went to design center signed some documents and know we're doing escrow documents and have a meeting with other homeowners with contractors what to expect
We learned builders stay pretty quiet through the build process. I'm guessing it's to keep people from becoming too involved and bugging them to death, which I get. I've seen horror stories from both sides. They should be sending you updates as things progress. Ask lots of questions if there's something you don't understand, and don't let up until they've been answered. Other than that, get used to the silence. By all means, hire an inspector for each phase of your build! It's well worth the expense. And finally, you won't get a refund. That's why it's so very important to be sure you're making the right decision before entering into the contract.
@@leeslees65 they shouldn't be quiet right now because they should be setting appointments to get down my structural changes and options so they can request the permit to build. They had a changeover in management that was unexpected, but the continuity of care should not have fallen by the wayside. They need to plan better going forward because that was annoying. I've finally heard back from them now.
There's an old joke usually titled something like, "how government works" that probably fits here. The story basically is of a low paid guard that through the wasteful, unaccountable, bureaucratic mind results in another 10 employees that produce nothing, but 'manage' at various interlocked levels. Their roles guaranteed only by the other roles, eventually a congressional audit finds they are over budget, so they fire the guard.
Based on my personal experience, and talking to others over the decades in DFW, I am amazed how terrible the work is, but how luxurious the pay is for non-producing cruft. The result is an outrageous price for low quality work that has an old style apartment building, "paint over everything" whitewash approach. The lawns are sprayed on while the soil is unconditioned and problems soon arise. Look in the attic and see the terrible work, or observe the shoddy frame level components like insulation, if even present as areas are skipped or skimmed over and I wonder if it was done in the style of some kids covering up the vase they broke.
I would have to say I'm not this far on the continuum with you. I see some of poor quality but I wouldn't say they're all that way. I see some that are very solidly built from sheathing all the way to components and fixtures.
Wait if you can, it seems they will come down more. Smell like desperation already not only from new home sellers.
I was working on some market analyses yesterday and found one home listed at 100k above list price compared to the prices that builder had recently accepted. I was thinking, in a case like this the buyer shouldn't feel like they're putting in a ridiculously low offer, they're actually offering market value.
After watching a single family development go up near my apartment, I am going to pass on a new build. The materials they used were sub-par and flimsy looking. I want an older home that was built from quality materials by people who had pride in their work, but that has not been made into a sterile gray mausoleum by house flippers with a "vision".
To add, I also want acreage I can keep livestock on in order to take advantage of ag exemption.
You have some solidly built homes in the higher end. I've been particularly impressed with Tradition homes. They don't have much of a history but our buyers have been very happy and they use good solid sheathing. So, not all are bad in dfw!
The house flippers are bringing ruin to many. The results are, and you can read this in replies here, to move from house to house and only have higher end homes. The American dream was shot in the head and now in its place is abject greed. Ask remaining WW2 vets how they returned and because of quality, forever homes they could focus on building up prosperity for their family and not need to be market experts merely to break even.
Hi wt are the good areas for investment buy under 400k for rental
I don't focus my attention a whole lot on rentals because it's a tough situation in Dallas. A lot depends on your financing of course, but single family homes are priced high with high interest rates. That's not a great formula for a good rental!
Who would buy a DR Horton home?
That's an interesting question. I'm working on a video now where I discuss first time home buyers and how sometimes they have to buy those lower level homes. One of the things I emphasize is to buy for the equity and don't plan to stay long term! So, I think DR Horton has a place. It's just not somewhere that you want to put down deep roots because the systems and fixtures are not going to be a high level quality.
quality is awful. rent or buy preowned
I think many people share that opinion with you!
After this hurrciane lets add another 35% to the rates on insurance 😂....I am so glad I didnt move and buy here like friends who are trying to get out now. This market is going back to 2012 levels.
Great point! It will be interesting to see how that plays out, whether the state as a whole will be impacted, thus affecting non coastal areas.
Hurricanes... in Dallas...? You're confusing Houston and Dallas. Hurricanes dont touch Dallas (by the time they do its just a thunderstorm typically).
@CamHart73 You don't understand when a hurricane does damage to one part of the state everyone in that state pays for it in insurance increases. You are welcome.
Dallas sucks in the summer. Houston has cooler weather.
I always heard Houston was more humid. Is that not the case?
@WendyPannell Yes Houston is more humid and the air quality is worse. They also ger hurricane weather and I suspect the insurance companies will change some things soon.
Being by the ocean, Houston is much more humid than Dallas. I've lived in both places. Houston is miserable during the warmer months, and the mosquitoes are unreal!
They are building too much in dallas new community everywhere it's rediculos.
They really are!
When you say they are building too much are you implying that they have started a lot of homes as specs and not build to order.? If that is the case where are there subdivisions where there are a bunch of unsold homes (more than 10) sitting there.? The big builders like to have 90% of their construction activity as backlog meaning they sold the home as a build job to a customer who toured and purchased from the model. They will always have inventory homes for people who want to move in fast. So again where are builders building tons of spec inventory? And this is not a pissing match, this is a real question because I'm curious
@@jamesstovall1839I could do a deep dive and create a spreadsheet with this info but yes, many, many builders with more than ten. So many! Devonshire in Forney comes to mind. 71 active new construction inventory homes there.
@@WendyPannell I would only speculate as someone who understands the home building industry that not all those home are in the same price point because there are 9 different builders in that subdivision with about 8-9 different price points and amenities so the question is how many homes at a given lot width, square footage, and amenities are available at any given time. Hell History Makers has a product in there starting at the high $200,000 and on the other end of the pendulum Partners in building has product starting at the $600,000. Also not all inventory homes are finished yet as a lot of these homes won’t be completed till end of the year so it may seem like a lot and yes builders are willing to make a deal to ensure they don’t have excess inventory down the road. All it takes is mortgage rates to hit say 6-6.5 and you could have a shortage of move in homes real quick. Again not trying to start a pissing match but these builders work with each other and understand not over supplying the market but at the same time keeping their people busy.
@@jamesstovall1839Those are all great points! Devonshire has definitely had a lot of builders, though on the mls I am currently seeing six. Inventory wise, Historymaker has 11, Trophy has 16, Highland has 8, Ashton Woods has 2, William Ryan has 3 and Perry has a mind-boggling 28.
You make excellent points on completion dates. I think another interesting data point would be to look up how much these builders have on their websites. Often that number is quite a bit higher than mls listings.
We recently negotiated a contract in Devonshire where one of the builders encapsulated much of what I spoke about in this video. They were offering 35k on a 360k house but would not come down tangibly in price. That amount had to come from closing cost assistance. With a limit at 6% that is an impossible concession. The SC kept saying they had to protect appraisal values. We moved on from that builder to one who was far more willing to talk. We were able to negotiate a forward commitment, assistance towards closing costs and a price reduction. Every builder will be different in what they’re willing to do and you make an excellent point that so much depends on whether their inventory is sitting complete or in various stages. All excellent points. Thank you so much for sharing your experience!
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My thoughts exactly!
Housing in america right now is a joke. But its like everything in a capitalist economy, nothing is cheap and quality is terrible. Builder increasing prices with a poorer quality build and it costs more to buy a house. I guess they meed more yachts to ski behind. Im in a burb of houston got in right before the big changes late in 2021. We are happy but the build quality left much to be desired - and from America's luxury builder - yea ok
Yikes, I'm sorry to hear you're having that experience!
Her broker told to make this video to avoid Builders selling direct to customer, Knowing we builders dont need a realtor to sell our homes. She is also burning bridges with builders in her area. Good luck.
Hi Chris! I am the Broker of the Brokerage we own and I speak the language of data. No one instructs me to make videos.
Secondly, we have excellent, outstanding relationships with the builders in the area. They greet us by name when we walk in the door. They know we will be thorough, negotiate assertively, and request comprehensive information, but they also know we bring highly intelligent, fiscally responsible and well funded buyers. Those are the kinds of buyers who value our videos and we love working with them!
Something we’ve experienced is new construction is deeply fragmented. All of the communities are like independent towns and they don’t speak to each other. On the infrequent occasion a sales consultant has watched my videos they’ll say, “I’ve watched your videos and you are right.”
Your comment that builders don’t need Realtors to sell their homes is true. You can sell them an overpriced, poorly constructed home seven days a week. It is the prepared and conscientious ones who study, watch videos and know better.
crash incoming
The concept of a crash is so black and white to me. How do you define it, how do you know when it’s here and so on. I like to focus instead on opportunity. Where can I find the most motivated seller or builder and what’s the biggest way a buyer can take advantage of that!
They are deathly afraid to break with current market values when they do the downward appraisal spiral will begin and go on for 5 to 7 years
5 to 7 years is a long time but I do agree they're constantly thinking about the almighty appraisal. We hear that a lot!