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I don't feel sorry for people who purchased beyond what they could afford, but to call people who responsibly bought a $300k home in this area "jokers" is just plain ignorant.
Seriously! It's one thing to barge into a mortgage when you have poor credit and/or no verifiable resources to back it up, but buying a $300K house when you have $100K in the bank is far from irresponsible. That guy probably could have gotten approved for a much higher loan during the crazy bubble days, but he chose to buy more modestly. There are a lot of people who share blame for the craziness of the last few years - many buyers included - but this doesn't sound like one of them.
That's what someone said, but then it sparked up the conversation about how taxes probably aren't going to be that much lower, otherwise the counties will lose significant revenue.
Speaking of which, what does everyone think about this? Do you really think that we'll be paying less taxes this year, or do you think the tax rate will be raised significantly to compensate? How can the county survive if they're receiving a third of the taxes they received last year? I'm not sure exactly how the taxes work, and if there are limitations on when the tax rate can be raised (if it has to be at the start of the year, or if they can raises taxes mid-year). Anyone care to weigh in?
In PWC, BOCS increased the tax rate from .97 to 1.212 to counteract it. They said it will drop the tax bill for average homeowner by $430, that's the average, some will get less some will get more. Businiess owners will see their tax bill increase by 5.5% so maybe that's where they are making up for it.
I did a quick calculation and my tax bill next year should drop by about $486 dollars. My assessment dropped 100k since last years.
Also at tax assessment does not in many times equal the appraissed value, or even the "sold" price of a home. I don't put any real value in the tax assessment personally. It only matters what someone will pay for the house. If you're not selling, then the numbers are moot.
First of all, how do you know it was worth "half of that less than a year prior"? I believe it was a new home, so I doubt it was worth $150k the year before. Unless you mean a "year after"...
Secondly, I don't think $320k is a high price for a home in the NoVA area. Not at all. Nor do I think it's now priced correctly at $117k - I think that's ridiculously low, and to suggest that $117k is an accurately reflection of the cost of homes in NoVA is ludicrous. It's a desirable area, and the prices of homes are generally higher to reflect that. If you don't want to pay that, move elsewhere.
To call him a joker for buying a $300k home, AND putting down a whopping THIRD of the price, is ridiculous. Seriously. His story is one of the most responsible one's I've heard, and I DO feel sorry for him because his position has been decided for him by the people around him.
I don't feel sorry for people who purchased beyond what they could afford, but to call people who responsibly bought a $300k home in this area "jokers" is just plain ignorant.
I have to agree with you. Manassas is a hike from some of the major job centers but it isn't like your living out in West Virginia (some people do). 117K does seem very low for a house in the Northern Virginia area.
In PWC, BOCS increased the tax rate from .97 to 1.212 to counteract it. They said it will drop the tax bill for average homeowner by $430, that's the average, some will get less some will get more. Businiess owners will see their tax bill increase by 5.5% so maybe that's where they are making up for it.
I did a quick calculation and my tax bill next year should drop by about $486 dollars. My assessment dropped 100k since last years.
Also at tax assessment does not in many times equal the appraissed value, or even the "sold" price of a home. I don't put any real value in the tax assessment personally. It only matters what someone will pay for the house. If you're not selling, then the numbers are moot.
Interesting. I wonder what the Loudoun rates will change to. I guess your's will drop so much because you lost so much value - we only lost about half of what you did, so I doubt we'll see the same savings. Oh well. Anything's better than nothing! Now I wonder if Countrywide will lower our escrow payments as well...
I agree that the tax assessment is pretty much moot if you're not selling. Still, it doesn't make anyone feel any good about it. If I saw such a big drop, I'd be shocked!
I think the worst part is this guy put down sooo much money, and he's still underwater by a good chunk of change. That's just incredible to me. I mean, he's probably under about as much as us, and we put down zero! Eek.
Interesting. I wonder what the Loudoun rates will change to. I guess your's will drop so much because you lost so much value - we only lost about half of what you did, so I doubt we'll see the same savings. Oh well. Anything's better than nothing! Now I wonder if Countrywide will lower our escrow payments as well...
Loudoun is going up to $1.245 ($1.14 last year). Our assessment was 67K less than last year, so our taxes are going down $228.
I think the worst part is this guy put down sooo much money, and he's still underwater by a good chunk of change. That's just incredible to me. I mean, he's probably under about as much as us, and we put down zero! Eek.
When people speak of being underwater, what number are they using to compare to the amount you owe? Are they using the tax assessment, or the appraised value of the home? Like I said, the tax assessment and the appraised value normally don't match up, usually the appraised value is higher.
Honestly don't give the tax assessment any thought. It's written by the same people that over assessed it years ago
First of all, how do you know it was worth "half of that less than a year prior"? I believe it was a new home, so I doubt it was worth $150k the year before. Unless you mean a "year after"...
Secondly, I don't think $320k is a high price for a home in the NoVA area. Not at all. Nor do I think it's now priced correctly at $117k - I think that's ridiculously low, and to suggest that $117k is an accurately reflection of the cost of homes in NoVA is ludicrous. It's a desirable area, and the prices of homes are generally higher to reflect that. If you don't want to pay that, move elsewhere.
To call him a joker for buying a $300k home, AND putting down a whopping THIRD of the price, is ridiculous. Seriously. His story is one of the most responsible one's I've heard, and I DO feel sorry for him because his position has been decided for him by the people around him.
I don't feel sorry for people who purchased beyond what they could afford, but to call people who responsibly bought a $300k home in this area "jokers" is just plain ignorant.
Im sorry that you feel that NOVA is the epicenter of the universe, but as we all see, that house wasn't really worth he paid for it, regardless of whether it was NOVA or Nova scotia. Now let me also remind you, around that same time houses in the worst parts of the metro area were also for sale around 300 K plus (everything was overpriced), so for him to make an uninformed investement such as that, and then complain about it, yes I fail to see the sympathy in that. There was nothing special about that area, and if it was it would have kept it's value (see Mclean, Bethesda, Georgetown, etc) Sorry, that is the truth.
His position has been decided by him, how can he blame his neighbors? Did they make him sign the papers, or did they force him to over pay for a house that was truly only worth 150 k? No I don't think so, I think he fell for the media hype and bought that house quickly without doing research into the area, and checking the previous home prices a few years before under the false assumption that prices would continue to rise.
So your telling me, that if a house was for sale in 1998 for 150 k, in 1999 for 155k, then it doubles in less than 3 years to 300 k, that you don't smell BS? True 117 might seem low, but I guarantee you that it is closer to the actual value of than house, more so than 300. Nothing legally acumulates wealth that fast, and if it does the bottom at some point will have to fall out.
Im sorry that you feel that NOVA is the epicenter of the universe, but as we all see, that house wasn't really worth he paid for it, regardless of whether it was NOVA or Nova scotia. Now let me also remind you, around that same time houses in the worst parts of the metro area were also for sale around 300 K plus (everything was overpriced), so for him to make an uninformed investement such as that, and then complain about it, yes I fail to see the sympathy in that. There was nothing special about that area, and if it was it would have kept it's value (see Mclean, Bethesda, Georgetown, etc) Sorry, that is the truth.
His position has been decided by him, how can he blame his neighbors? Did they make him sign the papers, or did they force him to over pay for a house that was truly only worth 150 k? No I don't think so, I think he fell for the media hype and bought that house quickly without doing research into the area, and checking the previous home prices a few years before under the false assumption that prices would continue to rise.
So your telling me, that if a house was for sale in 1998 for 150 k, in 1999 for 155k, then it doubles in less than 3 years to 300 k, that you don't smell BS? True 117 might seem low, but I guarantee you that it is closer to the actual value of than house, more so than 300. Nothing legally acumulates wealth that fast, and if it does the bottom at some point will have to fall out.
Heh. I don't think that NoVA is the center of the universe - far from it. But employment here is solid and stable (or moreso than other parts of the country), schools are good, crime rates are relatively low...all these things make NoVA a very desirable place to live, which is why we have higher property values.
I don't understand where you're getting your definition of "worth" from. Like oneasterisk said, the tax assessment of the home is not an accurate reflection on home much the home is worth - it's worth what people are willing to pay for it. So it's not "truly worth $150k" as you say - it's worth the $300k that he (and many other's) were willing to pay for it. Now it's worth less, because people see all the foreclosure's in the area and are only willing to pay close to what those homes are selling for. The price a foreclosure goes for is absolutely no indication of what it's worth - why do you think people are snapping them up? Because they're such great deals, and they're paying a lot LESS than the houses are worth.
Heh. I don't think that NoVA is the center of the universe - far from it. But employment here is solid and stable (or moreso than other parts of the country), schools are good, crime rates are relatively low...all these things make NoVA a very desirable place to live, which is why we have higher property values.
I don't understand where you're getting your definition of "worth" from. Like oneasterisk said, the tax assessment of the home is not an accurate reflection on home much the home is worth - it's worth what people are willing to pay for it. So it's not "truly worth $150k" as you say - it's worth the $300k that he (and many other's) were willing to pay for it. Now it's worth less, because people see all the foreclosure's in the area and are only willing to pay close to what those homes are selling for. The price a foreclosure goes for is absolutely no indication of what it's worth - why do you think people are snapping them up? Because they're such great deals, and they're paying a lot LESS than the houses are worth.
True, but that does not mean anything! A cold glass of urine is worth a million dollars in the desert right?
The bottom line is that your buddy overpaid for his house, by a mile. You are correct, a house is only worth what anyone is willing to pay. My point is that the world was in a frenzy, buying up junk houses for high dollars so they could be in the driving seat in 2 years and unload the same POS house with new granite countertops and stainless steel appliances, and make a profit off the next sucker.
But guess what happened, the bottom fell out, and the last man standing with the hot potato is the winner! Now the flippers (who raised the prices with their shenanigans in the first place) have crawled back into whatever hole they came out of, and the market is finally adjusting back to normal (normal meaing values reflect actual rates of inflation, improvements, etc). Ask your buddy this, that 100 grand he put down on that house, where did it come from? Did he save it by clipping coupons, or did he get it by selling his previous residence? Now if it the latter, let us think about the poor schm uck who overpaid on his previous house, that I imagine is worse than where he is currently living, what about that guy? Ask your buddy does he sympathize with him?
And why should it matter anyway what somebody else paid for the house? If he bought that house as a potential living quarters for 30 years, he should have no regrets. If he bought that house under the assumption that the worth would continue to climb and then sell and make another 100 grand from some joker, then tough. These are the risks you take when you delve into real estate, marriage, or any othe rbusiness arrangement. You win some, and you lose some.
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I'm not sure exactly how the taxes work, and if there are limitations on when the tax rate can be raised (if it has to be at the start of the year, or if they can raises taxes mid-year). Anyone care to weigh in?
Now I wonder if Countrywide will lower our escrow payments as well...
