Frustrated home buyer in NoVA--will I ever find anything? (McLean: rent, loan)

[Denton56]

Originally Posted by Yankeesfan

No, that's not true, even in a normal year without snowstorms. People like to let their children finish out the school year before they move. Not everyone has children but it's a substantial enough segment of the market that it affects the overall timing. So the real busy season will start soon. I'm not looking for a house but like to browse the internet sites a couple times a week and the number of listings is starting to go up.

I am amazed at how much the inventory of houses has declined over the last year. There are so few houses on the market!

About 25% of people have school aged children, and yes, they do want to move in the summer, as do teachers, and lots of other people.

According to my agent, the summer is dead for sales. But there is a slight spike in September. Typically February, March, and April are great months for sales. But after this winter, things might be delayed.

[Denton56]

Originally Posted by wingerr8

Homes in Fairfax County that are in good condition/nice neighborhood, have great school triangles, convenient to jobs, and close to public transportation/major highways will always be overpriced and will sell anyway.

If they always sell anyway, then they are priced right, not over priced, by definition.

[wingerr8]

Originally Posted by Denton56

If they always sell anyway, then they are priced right, not over priced, by definition.

Overpriced meaning above tax assessment and/or appraisal.

[pcity]

But if they're consistently selling, then it's the tax assessment or appraisal that's off, not the pricing.

[Denton56]

Tax assessments are usually under the value of the house. Appraisals are usually more accurate.

[JD984]

Originally Posted by Denton56

Tax assessments are usually under the value of the house. Appraisals are usually more accurate.

Yep. And the tax assessments may not reflect the improvements made by the sellers before putting the house on the market. A 1980s house in Vienna recently went on the market for slightly less than $1 million, but $250K over the latest tax assessment. Both the kitchen and bathrooms were nicely updated. It went under contract in 7 days. Another house in the same neighborhood - priced much lower and clearly in need of some TLC - has been on the market for months.

[liloulou]

Originally Posted by JEB77

This seems like very good advice. I am curious as to whether the foreclosed home was in good condition when you bought it, or whether it was in so-so condition but you were comfortable that you could make whatever improvements you thought were needed in an acceptable time frame.

I raise this because one of the things that I think is greatly affecting some prospective buyers' expectations is the belief (or hope) that there is a sizeable "shadow inventory" of foreclosure/REO properties in NoVa. The buyers may not even want or be willing to purchase such a property, but they wish these properties were all on the market now because they think it would then lead to lower prices for the non-REO properties that do catch their attention. No one wants to settle for a house that doesn't meet all the criteria on their wish list and then face the prospect that the value of that home might decline over the next few years if lots of foreclosed/REO homes subsequently hit the market: it would seem like a double whammy. So some people look for extended periods, but have a very hard time taking the next step.

JEB77- Our foreclosure was in good condition overall. There were cosmetic things that needed worked on (crayon drawings on every wall, dirty carpet, etc...) but compared to the other foreclosures and short sales we saw, ours would be considered "clean".

[anonymous703]

Originally Posted by wingerr8

I've heard that sellers have adjusted their prices because of this credit

To which I would ask, since $8000 is 4% of a $200k house, and 2% of a $400k house, how much have the sellers really adjusted their prices?

I've always thought the $8k credit is a non-issue in this area.

[Guamanians]

Originally Posted by wingerr8

Homes in Fairfax County that are in good condition/nice neighborhood, have great school triangles, convenient to jobs, and close to public transportation/major highways will always be overpriced and will sell anyway.

That may be true, but that doesn't justify people paying more than they can afford. Isn't that what got us into this mess? I suggested renting as an option for people who want to live in a nice house at a lower cost.

[JD984]

Originally Posted by wingerr8

Homes in Fairfax County that are in good condition/nice neighborhood, have great school triangles, convenient to jobs, and close to public transportation/major highways will always be overpriced and will sell anyway.

Actually, one of the areas in Fairfax County that has the most inventory right now is the Langley part of McLean and Great Falls. The schools may be top-rated, and the neighborhoods relatively close to the area's major job centers (DC/Tysons/Dulles), but far fewer people are willing or able to purchase the really big, flashy homes.