I have an option to purchase a luxury home in Dallas county, Texas. The homes are appreciating about $9300 per month; the purchase price is locked in at $400,000 to $450,000 for a 4200 to 5000 square foot home. The same exact homes by the same builder in Plano, 12 miles south of this location, are priced at $750,000
I need help assigning this to somebody.
Tapan,
I live in the DFW area and I work as a mortage consultant as well; so I am very well versed in the real estate market in this area. I can tell you two things…
1)12 miles might as well be in another state. No appraiser or lender is going to let you use a property that is 12 miles away as a comp. As for it being the same builder, there are neighborhoods next to each other that have the same builders, but the house values are 100K different.
2)There is no way a property valued at 450K is appreciating at 9300 per month. That is a annual appreciation of 24.8%. Maybe in other parts of the country, but not here. On the high side appreciation here is 7-8%.
I am not trying to burst your bubble, but you may need to check your numbers again before you put in a contract. Hope this helps. 