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Hello All, I recently put my condo in Manassas Park, VA. I'm trying to sell it quickly so I can move into a house by the end of the summer. I've been checking Zillow daily for the number of views/favorites. I've had over 300 people view it and four favorite it, yet had only one showing. Should I be alarmed? It seems like the DC area market is a little different than when I purchased it in 2010 when I had to compete with buyers left and right. It shows well and has new appliances including an HVAC system that was just installed last September. I did have the price set a little high at first thinking I could get a little more since the inventory was low for condos, but have since dropped it. My realtor even admitted it was hard to get good comps since there aren't many condos around that recently sold.
Also, my loan officer said the FHA approval at my condo expired & maybe why I'm not getting too many showings, but my realtor didn't seem too concern. She said it was the norm for most condos in Virginia to not be FHA approved and that there were other ways of financing (like conventional, VA etc) , although I currently have an FHA loan and we had to go through and push the association to get approval back in 2010 so I could secure my loan. Is it worth it, to push for the association to complete the paperwork for FHA so it will expand the buyer pool? Thanks.
It looks like you had it on the market for only 6 days and then dropped the price by over 8 percent. Also, whats the deal on the taxes? It looks like the taxes have gone up $400 in each of the last 3 years. Is this a trend in the area?
Its only been 2 weeks. But only a single showing in that time would be concerning.
Yeah that tax assessment data in the MLS is outdated. I recently got my assessment from the city and as of July it will be assessed at $142,100, but currently at $131,000. The last two units in my complex that sold were for $132K and $141K and that was back in 2013.
You might check to see if your condo is VA approved. There are quite a few new vets using their eligibility nowadays. Google something like list of VA approved condos. I'd link it but it is too long as is. Just fill in your state or add your condo association name.
You might check to see if your condo is VA approved. There are quite a few new vets using their eligibility nowadays. Google something like list of VA approved condos. I'd link it but it is too long as is. Just fill in your state or add your condo association name.
Thanks! It looks like it is VA approved. I'm still going check with my association and see if they can get FHA certified. Is it normal for condos (especially older ones) to not be FHA certified?
Thanks! It looks like it is VA approved. I'm still going check with my association and see if they can get FHA certified. Is it normal for condos (especially older ones) to not be FHA certified?
Don't know if it's normal or not. There are a lot of restrictions so the condo board can't let things slide.
There are some requirements the association would have to meet. No more than 50% rentals, no more than 50% with FHA loans already; at least 10% of their income must go to reserves; proper insurance in place (additional for more than 20 units); no more than 15% of owners can be over 30 days delinquent in fees.
I know some that had to drop FHA during the recession because there were so many delinquent fees, which eventually resulted also in a lot of tenants.
There's quite a range of condominium projects in Manassas Park and where you are located off the 28 corridor is everything.
As the others have stated, available financing (or lack of) is a huge factor. Besides what the others have already stated, did you know the most expensive loan one could get is a non owner investment highrise condo? (Yeah, I know you likely are not a highrise, but each of those adjectives represents higher rates to prospective buyers). So, someone looking at your condo vs the TH across the street will pay more in their rate for the condo. (Anyone using FHA financing typically has credit challenges - the cost to buy FHA is higher). Almost all conventional pricing has add one for property type and down payment....so someone putting 20% down on a condo will pay less than someone 3% down. And let's face it, if they have 20% down, they probably are not buying a condo, and probably not in Manassas Park. I've done several investors loans in the newish project close to the VRE. Each investor was able to scoop up a bargain from tired sellers desperate to get out.
Too ambitious a price that can stall a condo's sale, especially in an outer suburb like Manassas Park, where there are numerous townhouse communities. When factoring condo fees, you want to be less expensive than a comparable townhouse as fee-simple ownership has far fewer hassles, even with quarterly HOA dues.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
My condo got a lot of bankruptcies and short sales in financial crisis due to FHA low downpayment loans.
We ended up being non warrantable for a few years between 2010 and 2014 meaning cash only. Which resulted in lower prices but zero default risk new owners.
Now we are eligible for confirming mortgages 20% down.
As treasurer I dont think I would allow the condo ever to do FHA or VA loans again. They serve no interest to residents of condo. Only folks selling AKA leaving and only folks buying
But the vast bulk of building they put at great risk if we have another real estate downturn.
It is a double edged sword. Also higher resale prices are not always good long term.
Between 2010 and 2014 when we were unwarrantable and units sold cheaper due to cash only we got a lot of low comps and building used low comps to grieve property taxes and won a few times.
Honestly, long term we forced out the deadbeats who bought from 2001 to 2008 with FHA loans at bubble prices who defaulted, new buyers have 100% equity and folks who bought pre-2008 and stayed current mortgage even if FHA have a lot of equity by now.
Not a single buyer has yet to buy with a mortgage as we only finally got clean financials in May 2015. But I dread the first person buying with a mortgage unless it is at least 25% down.
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