Driving up prices on a street? (Baltimore: real estate, foreclosures, renting)

[DanB]

I am in the process of buying a house in baltimore city. Specifically in Charles Village. I am interested in a house that was bought about a year ago(04/06) for 140k, and now the seller wants to sell it for 208k having updated the kitchen and bathrooms(approx 20k worth of work)

Does this price seem high?
Another house identical to this one sold in may for 157k.

I like the house, and i feel like compared to what else is out there, its worth 190-200k, but do i want to be the sucker who is the first person to buy a house on this street for 200k?

I plan on living there for 3 to 5 years, but can i expect to sell the house for 210+ with the market declining?


Also I have heard that the market will only get better(for buyers) in the coming months, and I should leverage this as much as possible to get the best house for the best price.

I am a bit confused and would like anyones advice/input on the situation.

[talk2u]

Well if you like the house enough, you could put in your offer contingent upon a satisfactory appraisal. If you're concerned they'll reject your offer immediately upon seeing a contingency, maybe offer them $1000 over the appraised value not to exceed the original asking price of $208k. However, everybody knows that it's now a buyers market and I don't think Baltimore is exempt from this trend. As early as last year, it wouldn't have been unusual to see large appreciation values with the big housing boom. Baltimore was/is saturated with investors flipping houses like pancakes and still trying to command last year's prices. I say do your research, get an agent to pull some comps and offer what the market is dictating today, not what houses were selling for last year.

[Zippy7fo]

Originally Posted by DanB

I am in the process of buying a house in baltimore city. Specifically in Charles Village. I am interested in a house that was bought about a year ago(04/06) for 140k, and now the seller wants to sell it for 208k having updated the kitchen and bathrooms(approx 20k worth of work)

Does this price seem high?
Another house identical to this one sold in may for 157k.

I like the house, and i feel like compared to what else is out there, its worth 190-200k, but do i want to be the sucker who is the first person to buy a house on this street for 200k?

I plan on living there for 3 to 5 years, but can i expect to sell the house for 210+ with the market declining?


Also I have heard that the market will only get better(for buyers) in the coming months, and I should leverage this as much as possible to get the best house for the best price.

I am a bit confused and would like anyones advice/input on the situation.

I would not buy....If the area isn't young, diverse, good schools, near employers then that increase ain't coming. Plus the cosmetic changes the owners made do not justify jacking the price up 70-80 grand when you look at the avg for the street and what they did to the house. No I would pass and keep looking or make them come down significantly....

[lscalder]

What you need to understand about prices declincing is that is only happening in area that had the appreciation such as Montgomery,majority of fairfax and Washington Dc. Yoou see Baltimore is growing,The area had no appreciation when all other area did. I buy investment properies in Baltimore city and my properties have not decrease as yet and they will not until Baltimore have develop which will be in the next 10 yrs. Baltimore have long way to go. On any given block in Baltimore City Investors are buying these homes almost everyday and Renovating so if you do purchase your home will only appreciate until the next 8-10 yrs once Baltimore is about 95% develope.
You have nothing to worry about. I tell people if you are looking for a fast appreciation buy in Baltimore because thats the only place close to Washington Dc that you will get it.

[DanB]

Originally Posted by lscalder

What you need to understand about prices declincing is that is only happening in area that had the appreciation such as Montgomery,majority of fairfax and Washington Dc. Yoou see Baltimore is growing,The area had no appreciation when all other area did. I buy investment properies in Baltimore city and my properties have not decrease as yet and they will not until Baltimore have develop which will be in the next 10 yrs. Baltimore have long way to go. On any given block in Baltimore City Investors are buying these homes almost everyday and Renovating so if you do purchase your home will only appreciate until the next 8-10 yrs once Baltimore is about 95% develope.
You have nothing to worry about. I tell people if you are looking for a fast appreciation buy in Baltimore because thats the only place close to Washington Dc that you will get it.

I think the 'good' areas in baltimore have had a lot of appreciation. This house being an example. The house I was just renting was purchased for 90k in 2002 and is now worth over 200k.

[carebear1970]

go to dat.state.md.us and look up the amount they paid for it. this will help to see what they are trying to make off of it

[DanB]

Originally Posted by carebear1970

go to dat.state.md.us and look up the amount they paid for it. this will help to see what they are trying to make off of it

I did that. They paid 140k for it in april of 06. Probably did about 20,000 worth of work(1 FB, 1 HB, and 1 kitchen) and are now selling it for 208. That seems kind of high to me. A house 3 doors down sold for 157k back in April.

What is everyone's feeling on the 'bubble bursting' and how it will affect houses priced in the 180k-200k range? I am interested as I had been planning on purchasing in the next 6 months.

[carebear1970]

It has busted....check out all the foreclosures out there...if they want that much and you really really really want the house...make it work in your favor...give them your offer and show them you have the proof about what their neighbors have paid and then tell them you want all your closing costs paid...if they want out they will do it. Of course also, alot of people are living in dream land thinking their property is better than everyone elses on the street..you may also want to see the cost of all the upgrades..i mean anyone can "home depot" their house cheap.

[DanB]

Originally Posted by carebear1970

It has busted....check out all the foreclosures out there...if they want that much and you really really really want the house...make it work in your favor...give them your offer and show them you have the proof about what their neighbors have paid and then tell them you want all your closing costs paid...if they want out they will do it. Of course also, alot of people are living in dream land thinking their property is better than everyone elses on the street..you may also want to see the cost of all the upgrades..i mean anyone can "home depot" their house cheap.

I offered 180, and he countered with 205. I said 190 was the highest i was willing to go, and haven't heard back... The owner is a real estate agent, and this is an investment property, so i dont really think he is in a position where he has to sell it.