185 replies to this topic

[mzweig]

masons_dad1, on Oct 1 2006, 06:10 PM, said:

The problem with that is anyone who can afford a home priced over $150,000 is usually able to go higher than that and developers will feed off that. An affordable starter home based on the national market is still in the "under $100,000" price range. Being that NWA is an inflated real estate market right now the percentage of renters is increasing in an area that already has a higher percentage of renters than the national average.

A lot of those $150K buyers are stretched to the max, believe me!  Don't wait around for new $90K houses. It aint gonna happen here unless you are way out of town....

[masons_dad1]

mzweig, on Oct 8 2006, 10:46 AM, said:

A lot of those $150K buyers are stretched to the max, believe me!  Don't wait around for new $90K houses. It aint gonna happen here unless you are way out of town....

I agree and I doubt that there will ever be any homes priced under $110K anywhere, unless they're old fix'em up deals. I've been seeing quite a few brand new 3 bedroom/2 baths going for right about $113K in the Pea Ridge area and the same homes in Centerton and west Bentonville going for around $125K. I'm hooping that by the time I'm able to buy land prices will have settled down some and newer homes may drop closer to $100K. Either that or the same $113K today will buy more home with a bigger yard in just a few years.

[mzweig]

masons_dad1, on Oct 8 2006, 10:47 PM, said:

I agree and I doubt that there will ever be any homes priced under $110K anywhere, unless they're old fix'em up deals. I've been seeing quite a few brand new 3 bedroom/2 baths going for right about $113K in the Pea Ridge area and the same homes in Centerton and west Bentonville going for around $125K. I'm hooping that by the time I'm able to buy land prices will have settled down some and newer homes may drop closer to $100K. Either that or the same $113K today will buy more home with a bigger yard in just a few years.

I have always been fascinated with modular and panelized houses.  They can be done right--put on proper foundations--designed with some style--and really look good. One of the manufacturers is doing a bungalow-style house that has a full width porch at one end and you'd never know it was modular if it was set up properly.  My daughter is looking at modular and panelized log houses, too--some are affordable.

[mcheiss]

I heard that Brandon Barber is going to build 200 affordable homes in Bentonville in the 120K range. I was a bit shocked to hear this, since he's only been doing large-scale projects for the rich.

[masons_dad1]

mzweig, on Oct 9 2006, 07:33 AM, said:

I have always been fascinated with modular and panelized houses.  They can be done right--put on proper foundations--designed with some style--and really look good. One of the manufacturers is doing a bungalow-style house that has a full width porch at one end and you'd never know it was modular if it was set up properly.  My daughter is looking at modular and panelized log houses, too--some are affordable.

I'm looking into Arkansas companies that build "foundation homes". They're similar to modular homes and generally are supposed to cost 25-30% less than the average cost or as low as $46 per square foot. You just provide the land and they custom build your home with all sorts of options. So far I only know of a builder in the Little Rock area www.arfoundationhomes.com.

mcheiss, on Oct 9 2006, 03:55 PM, said:

I heard that Brandon Barber is going to build 200 affordable homes in Bentonville in the 120K range. I was a bit shocked to hear this, since he's only been doing large-scale projects for the rich.

Sounds good. I would love to see what kind of homes he has planned. The new homes already going for under $130K are 3 bed/2 bath with garage and generally around 850 square feet on 3/4 acres. For him to build them cheaper they would have to be either smaller or lower quality than what is already being built.

[mzweig]

[quote name='masons_dad1' date='Oct 9 2006, 10:03 PM' post='580429']
I'm looking into Arkansas companies that build "foundation homes". They're similar to modular homes and generally are supposed to cost 25-30% less than the average cost or as low as $46 per square foot. You just provide the land and they custom build your home with all sorts of options. So far I only know of a builder in the Little Rock area [url="http://www.arfoundationhomes.com/index.htm"]www.arfoundationhomes.com[/url].

Interesting!  Thanks for referring me to this site.  These are quite affordable.  No utility hookups, driveways, patios, or landscaping is keeoing their cost dowsn.

[Mith242]

mcheiss, on Oct 9 2006, 03:55 PM, said:

I heard that Brandon Barber is going to build 200 affordable homes in Bentonville in the 120K range. I was a bit shocked to hear this, since he's only been doing large-scale projects for the rich.

I wonder if he'll ever do this in any of the other NWA cities.

[mzweig]

I dunno why this topic was moved to coffeehouse since it is a discussion of real estate.  That said, back on the topic of the Fayetteville housing market....the house across the street from the one I am redoing at 412 E. Lafayette and one house further away from Dickson sold for $499K in one day.  It has 2600 square feet.  The buyers promptly gutted it and are now spending upwards of $300-350K on improvements.  Those include a new massive stone fireplace, new landscaping, new faux slate roof, etc.  For those of you who think everyone buys based on cost per square foot this is an example of what is happening in the downtown/close-in market.  They ain't making any more historic houses in historic neighborhoods.  Prices are still very strong for houses that are done properly (no vinyl, no aluminum soffits, no cheesy kitchens and baths, etc.) in the right neighborhoods (ones where people are taking care of their properties and that are convenient and have character.)

M

[mcheiss]

I'll move it back, sorry. I thought it was a general topic on Housing, not particular developments.

[mzweig]

mcheiss, on Oct 10 2006, 06:15 PM, said:

I'll move it back, sorry. I thought it was a general topic on Housing, not particular developments.

Thanks, Man, no problem!  We all appreciate what you do for us here.

One additional observation.  I have seen more and more FSBOs lately (for sale by owner).  It seems that many are getting tired of paying 6% commissions to realtors and trying it on their own.  I think this can be risky and use realtors myself but the cost savings can be significant.

[RAK]

From experience, even if you sell by owner, realtors will contact you.  Most will try to get you to use them, but some will bring a real prospective client, in which case, you deal down their percentage.  3-4% is possible, despite what they might say.  If the client likes your home, as happened, the realtor would be a fool not to take such a deal.

He wasn't.

[mzweig]

As the outside of the house I am redoing at 412 E. Lafayette nears completion, I can tell you all that there's been a tremendous interest from passersby for a tour.  It just reinforces to me that if you use the right materials such as cedar shingles vs. vinyl or concrete siding, have wood windows and doors vs. metal or vinyl ones, pick out good lighting and not cheesy shiny brass, and pay attention to details overall you will end up with a house that sells in spite of a rather dismal residential market overall.  We put a 4-foot square cupola/belfry-like structure with a steeple roof on the carriage house last week and have gotten many positive comments already on it.  Now the carriage house is getting shingled to match the main house and the landscaping and driveway will be redone.

[strmchsr77]

mzweig, on Nov 21 2006, 04:55 AM, said:

As the outside of the house I am redoing at 412 E. Lafayette nears completion, I can tell you all that there's been a tremendous interest from passersby for a tour.  It just reinforces to me that if you use the right materials such as cedar shingles vs. vinyl or concrete siding, have wood windows and doors vs. metal or vinyl ones, pick out good lighting and not cheesy shiny brass, and pay attention to details overall you will end up with a house that sells in spite of a rather dismal residential market overall.  We put a 4-foot square cupola/belfry-like structure with a steeple roof on the carriage house last week and have gotten many positive comments already on it.  Now the carriage house is getting shingled to match the main house and the landscaping and driveway will be redone.

You're redoing that one?  We drive by there all the time and wonder how much money the owners have spend on buying and redoing that home.  It must be a fortune.

[Aporkalypse]

mcheiss, on Oct 9 2006, 02:55 PM, said:

I heard that Brandon Barber is going to build 200 affordable homes in Bentonville in the 120K range. I was a bit shocked to hear this, since he's only been doing large-scale projects for the rich.

I'm sure it has to do with profit margin.  You make more on luxury homes but right now in NWA and Little Rock there a lot of these sitting around with only dust mites as occupants.  Cheaper homes may have less of a profit margin but they aren't going to sit on the market for a year or two waiting for a buyer, so it's not a foolish investment.

There are a lot of builders in DFW that make fortunes on new homes around $100k in suburbs like Melissa, Anna, Royse City, and Forney that are far from the urban core.  The key is to build them cheaply and build a lot of them for the builders.  There are homes like that already in NWA, the problem is that kind of tract housing isn't really attractive.  Still, you have to provide places for the lower middle class to live affordably if an area is going to thrive.

[mzweig]

strmchsr77, on Nov 21 2006, 11:11 AM, said:

You're redoing that one?  We drive by there all the time and wonder how much money the owners have spend on buying and redoing that home.  It must be a fortune.

That one is mine, yes.  I am doing it strictly to resell, however.  I have kept my budget under control for all the work being done.  Total rehab of 3500 square foot house plus a 500 square foot apartment on more than a half acre lot.

[nickydou]

mzweig, on Nov 21 2006, 05:23 PM, said:

That one is mine, yes.  I am doing it strictly to resell, however.  I have kept my budget under control for all the work being done.  Total rehab of 3500 square foot house plus a 500 square foot apartment on more than a half acre lot.

Let me know when you finish up on that home, I would like to see it. Not all Realtors are out to get you guys, but the way   I am actually posting a few peoples home on my website that gets lots of traffic for free for them since the market is just not bringing what they need right now, just to get them buyers (they are trying FSBO) and then they will pay me 3% if I do bring a buyer, nothing if I dont. These are for past clients of mine. Anyway, I sold a historical church that had been renovated into a home on Lafayette a couple years back to a lady from Boston, it had been on the market for over a year when she bought it. Then she was relocated out of the area in less than a year; she did not do anything to it (except furnish it a bit more modern) and came out quite well and it sold rather quickly I agree with all of you about the historical area in Fayetteville - it will always hold its value. I did, however just purchase a brand new home in Bentonville and paid around $93/sq.ft - it appraised for about 50,000 more - I am pretty happy with it (But I am planning on staying in it a few years as well).

[mzweig]

nickydou, on Nov 26 2006, 10:27 PM, said:

Let me know when you finish up on that home, I would like to see it. Not all Realtors are out to get you guys, but the way   I am actually posting a few peoples home on my website that gets lots of traffic for free for them since the market is just not bringing what they need right now, just to get them buyers (they are trying FSBO) and then they will pay me 3% if I do bring a buyer, nothing if I dont. These are for past clients of mine. Anyway, I sold a historical church that had been renovated into a home on Lafayette a couple years back to a lady from Boston, it had been on the market for over a year when she bought it. Then she was relocated out of the area in less than a year; she did not do anything to it (except furnish it a bit more modern) and came out quite well and it sold rather quickly I agree with all of you about the historical area in Fayetteville - it will always hold its value. I did, however just purchase a brand new home in Bentonville and paid around $93/sq.ft - it appraised for about 50,000 more - I am pretty happy with it (But I am planning on staying in it a few years as well).

You are welcome to come by any time.  I am usually there during the week until about 3:30.  We are still a couple months from completion, tho.

I work with Dale Carlton of Carlton Realty for all of my stuff.  He will have the listing.  I don't believe in going FSBO when you want to be on multi-list and when a good realtor is well worth their commission.  I have done many transactions with Dale--he's extremely helpful.  Plus, he's a real estate attorney.

M

[nickydou]

mzweig, on Nov 27 2006, 05:16 PM, said:

You are welcome to come by any time.  I am usually there during the week until about 3:30.  We are still a couple months from completion, tho.

I work with Dale Carlton of Carlton Realty for all of my stuff.  He will have the listing.  I don't believe in going FSBO when you want to be on multi-list and when a good realtor is well worth their commission.  I have done many transactions with Dale--he's extremely helpful.  Plus, he's a real estate attorney.

M

Great to know, I will watch for the listing. He is a great guy with lots of experience! My clients looking for the right home in that area are not in a hurry so I will probably wait till you are finished up. Thanks for the info!

[slyder1]

I was watching the local news here in Springfield and KY3 had a tidbit that said how Arkansas Housing market has slowed more than 20% from this time last year compared to the national average of 5%.  I was wondering what some of everyone's thought's were?

Edited by slyder1, 29 November 2006 - 06:03 PM.

[mzweig]

slyder1, on Nov 29 2006, 07:03 PM, said:

I was watching the local news here in Springfield and KY3 had a tidbit that said how Arkansas Housing market has slowed more than 20% from this time last year compared to the national average of 5%.  I was wondering what some of everyone's thought's were?

My thoughts are that we have much more new subdivision housing than the typical city because we have grown so fast.  As the market for new subdivision housing slows, our market is thusly (love that word) hurt worse than some other metro areas.  That's my two cents, at least.