An inside look at the residential real estate market in Southeast Texas including: the hottest neighborhoods, proven home selling strategies, home buying and negotiating tactics, median prices by neighborhood, average days homes are on the market, and professional advice on how to get the best deal when buying or selling a home.

292 Homes Closed in Southeast Texas in September

You might think Hurricane Harvey would have affected the number of home closing in September in Southeast Texas.  With a total of 292 closings, that doesn't appear to be the case.  There is no way to know how many more would have closed in September that didn't due to flood damage.  292 closings is still a high number of closings for the month of September.  

This chart will show you 4 other noteworthy home sales statistics.

Sept Stats

The bulk of the homes sales occurred in the $100,000-$150,000 price range but that is usually the case for the Southeast Texas residential housing market.  

  • 43% of the closings were homes priced from $90,000-$199,999.
  • 31% of the closings were homes priced from $200,000-$399,900
  • 3% of the closings were homes priced over $400,000

We continue to be in a sellers market with a low level of inventory in all but the upper price ranges.  Until homes damaged by Hurricane Harvey are repaired and start coming on the market the inventory shortage is likely to continue.  

If you are planing to buy or sell a home in Southeast Texas contact me.  When we work together I become your advocate.  I'll work hard to get you the best deal possible and exceed your service expectations.  

Sincerely,

Diane

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More Flooded & Gutted Homes Under Contract. Values Still All Over.

Flooded and gutted 10_12

About 6 weeks post Hurricane Harvey the number of flooded and gutted homes coming on the real estate market in Southeast Texas continues to grow.   We are also seeing the first of these flooded and gutted homes start to be sold - go under contract.  There are currently 12 homes under contract according to the SETX MLS.  

What is the value of a "flooded and gutted" home? 

  • Prices are still all over the place.  
  • Of the 12 that have gone under contract $54.95 was the highest price/SF (asking price) 
  • $179,900 is the highest priced home to go under contract.  Located in Hillbrook Estates in Orange.  (This is the asking price not sales price.)
  • The median price of the homes that are pending is $50,000.  
  • The lowest price/SF of these pending homes is $15.52

The market is still trying to establish a value of what these flooded and gutted homes will sell for.  Many of these sales are cash purchases.  Lenders are starting to bring construction loans into the market but they are still hard to get.  If you are thinking about selling or buying a flooded and gutted home contact me for a more detailed analysis of any home in Southeast Texas.  

Sincerely,

Diane

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What is the Value of a Flooded and Gutted Home in Southeast Texas?

  • Flooded gutted chart 45The number of flooded and gutted homes to go under contract is now up to 4.
  • The number of flooded and gutted homes listed in the MLS is now up to 45.

The chart above shows the average price per square foot of the flooded and gutted homes that are listed and the 4 that are pending (under contract).

The real estate market is just beginning to show what investor buyers are willing to pay for a flooded and gutted home.   From everyone I've talked to the opinion is there will be a lot more flooded homes for sale than there are buyers for them.  So for sellers my advice would be put your home on the market as soon as you can.   Price it aggressively to attract the investors that are buying.  Or take your time and fix it up.  The market analysis' that I've been doing for people show most are much better off fixing the home and selling it fixed rather than "as is".

If you would like a market analysis "as is" and "rebuilt" to help you decide what is best for you contact me.  You can reach me on the blog or call, text my cell.  

Sincerely,

Diane

 

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Home Remodeling Projects that Payback When You Sell

Remodeling-impact_2017 final

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kitchen renovations and upgrades are among the top remodeling projects most likely to add value to a home at resale and most likely to appeal to home shoppers, according to the 2017 Remodeling Impact Report, conducted by the National Association of REALTORS®. The report takes a look at the cost of the most common exterior and interior remodeling and replacement projects and gauges how much appeal they have to buyers at resale.

If you are rebuilding your home after flooding from Harvey, spending money on upgrading your kitchen and installing new wood flooring are at the top of the list in terms of what appeals to buyers and where you get the most money back on sales price.  

Good to know as my husband and I start to rebuild our Wexford Park home that got 3 1/2 feet of water thanks to Harvey and the Dam B water release.

If you need help determining the value of your Southeast Texas home contact me here on the blog, call or text me.  I'm happy to give you a market analysis.   There is no cost.  #409Strong  #409Sold

Sincerely,

Diane

 

 

 

 

 

 

 

 

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Establishing the Value of Flooded and Gutted Homes Post Hurricane Harvey

I've been posting about "as is value" and how to determine the value of a flooded and gutted home lately because so many people are considering this option.  Now we have the first two homes under contract.  Not closed yet.  Just under contract but this starts to establish a market value for flooded and gutted homes.  Data from the Southeast Texas MLS

F&G under contract

 

This is information from an earlier post.  I’m sharing it again. 

I have been asked to provide a formula on how to calculate a price on selling a flood damaged home when the seller wants to sell “as is” to an investor.

Here are some parameters to consider when making a calculation.  Keep in mind, the market value for this category of home has yet to be established.  (Is only beginning to be established)
 
-Start with the value of the home prior to the flood.
-Discount that price by 10%-20% to account for stigma due to the flood.  The extent of the damage to the house/neighborhood will determine how much to discount.
-Subtract the estimated repair costs.
-Subtract 20% to account for profit.  (20% of the anticipated repaired sales price).
 
Example:
 
Pre Flood Value –            $200,0000
15% Stigma Discount –     $30,000
After repair value –         $170,000
 
Repair Costs –                     $60,000
20% Investor Profit –         $34,000
 
“As Is” Value -                 $76,000
 
This information should be taken with a healthy dose of salt.  Stigma, repair costs, and investor profit expectations are all moving targets.  
 

If you would like help determining the market value of your home please contact me.  There is no cost for the analysis. 

#409Sold

Sincerely,

Diane

 

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Thanks to Hurricane Harvey. Flooded and Gutted Homes added to Southeast Texas MLS.

 

RiShown below a photo of a flooded and now gutted home in Wexford Park in Vidor. 

IMG_5939

Its not common that the MLS adds a new category of homes.  Thanks to Hurricane Harvey it has.  We now have a category called "Flooded and Gutted".

Flooded and gutted chart

 

There are 30 homes for sale in the category  "flooded and gutted".   The prices are all over the place.  Right now there are no "pending sales" in the MLS of flooded and gutted homes.  Right now the market is trying to figure how to price these homes.  Once there are some sales then we will have a better idea how to price a flooded and gutted home.  My best guess right now is that we will see these homes start to sell around $30/SF.  

 

 

 

 

 

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"As Is" Value of Flooded Homes in Southeast Texas

IMG_5939

 

I ran this post earlier this week.  I'm running it again because a lot of people are asking the question "What is my home worth if I sell it "as is" with flood damage but gutted.  

Here's the chart that I posted earlier this week. 

As Is Value

I've spent the past week driving around showing flooded homes to investors and talking to people who are thinking about selling their home "as is".   My advice is if you have any way (any way at all) to fix your home then you will come out better in the long run selling once it is fixed up.  

The sheer number of flooded homes is going to far surpass the number of buyers who can buy homes in "as is" condition.  

Here's is an example of a homes "as is" value

Pre Flood Value –            $200,0000
*15% Stigma Discount –     $30,000
After repair value –         $170,000
 
*Repair Costs –                     $60,000
20% Investor Profit –         $34,000
 
“As Is” Value -                 $76,000
 
*estimate
 
Now, the next factor to consider is how much inventory there will be of flood damaged homes.  If there are a lot for investors to choose from, this will have a downward effect on the prices.  And vice versa. 
 
Hope this helps.   These numbers are potential starting points for negotiation.  We are using our best guess since we don’t have any recent history to draw from.  Ultimately, the market will determine the sales prices.  
 
If you are considering sell your home and would like a professional market analysis, contact me.  There is no cost for the analysis.  This is a very difficult time for all of us.  Gather as much information as you can before you make any decision regarding your home.
 
Sincerely,
 
Diane
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"As Is" Value of Flooded Homes in Southeast Texas

As Is Value

 

For Example:  

Pre- flood Value –                $150,000
15% Stigma Discount –        $22,500*
After repair value –             $127,500
 
Repair Costs –                         $40,000
20% Investor Profit –            $25,500
 
“As Is” Value -                         $62,000
 
Now, the next factor to consider is how much inventory there will be of flood damaged homes.  If there are a lot of homes for investors to choose from, this will have a downward effect on the prices.  
 
These numbers are potential starting points for negotiation.  We are using our best guess since we don’t have any recent history to draw from.  Ultimately, the market will determine the sales prices.  
 
*This information was provided by Andy Hemmings, Sales Manager with Coldwell Banker Southern Homes.  I've put it in a chart and shared it with the readers of my blog.  
 
If you would like a post-flood market analysis to help determine the value of your home, please contact me for a no cost analysis.  
 
Sincerely,
 
Diane
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Hurricane Harvey Aerial View of Homes in Southeast Texas

Wexford Flooding

If you have wondered why there haven't been posts for the past several days, two words, Hurricane Harvey.   So many areas had flooding that is hard to comprehend.  My home was an island for about five days.  We couldn't leave because there were flooded roads keeping us from going anywhere.  

One thing I found fascinating during the storm was looking at the aerial images taken by NOAA.  This link will show you any address you want to see that was affected by Hurricane Harvey.

Aerial Images of Hurricane Harvey Flooding Homes

So many areas were flooded but some of the worst:

  1. Orange County - Wexford Park, 1131 and Four Oaks Ranch areas
  2. Jefferson  County - Northwest Forest, Pinewood and Bevil Oaks

Look at these addresses.  12755 Tanoak Ln,  427 W Pineshadows,  1865 Wexford Dr

This will give you an idea of how much of Southeast Texas flooded.   The residential real estate market was low on inventory before Hurricane Harvey hit.  It is going to extremely low now and for the next several months while people recover and rebuild. 

If you are looking to buy or sell a home in Southeast Texas, I can help.  

Sincerely,

Diane

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