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Old 02-09-2011, 06:00 AM
 
5,121 posts, read 6,817,454 times
Reputation: 5833

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Quote:
Originally Posted by momtotwoboys View Post
I thought this was a great example of a fairly priced home selling quickly. Went under contract in under a week. This is our target area so just goes to show you still have to move quickly on a property that is well priced.
FX7524435 on FranklyMLS.com 609 THELMA CIR, VIENNA VA for $500,000 in VIENNA WOODS Home For Sale
My house must have been a dump since it took twice as long to go under contract (okay, I am just kidding. I love my old house and put a lot of work into it and it shows. It's just not working for me anymore commute-wise and size-wise and now is a good time to buy with low interest rates. But I am going to miss it).

I actually had two offers the same weekend--but it wasn't a bidding war like you would expect. Both offered less than the asking price, I counter offered with something under my original list price, and one agreed while the other tried to talk me down more. Of course, I went with the better counter offer.

As for home linked above, the paneling and blue carpet, that's all just cosmetic and easily updated. Now that salmon pink bathroom with black trim... it kind of reminds me of the girls lavatory at my old elementary school. But I suppose it has "retro-charm." But it too is just cosmetic (but would probably be expensive to update).

As an aside, while I was selling my house I watched a show on A&E about staging homes with some degree of fascination. The one thing that really struck me were the number of people who look at stuff that doesn't matter when determining the quality of the house. I am not talking about things like the paneling, carpet and bathroom tiles (which are legit things to look at in determining to buy a house because they come with the house). I am talking about people on the candid camera not liking the house because of the furniture, decorating style of the home owners, etc. I found it kind of odd, but interesting.
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Old 02-11-2011, 04:37 AM
 
Location: Spartanburg, SC
4,902 posts, read 7,472,195 times
Reputation: 3877
OP, are ya stilling "holding the line"? Might want to check those rising interest rates . . .
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Old 02-11-2011, 06:15 AM
 
Location: Ashburn, VA
989 posts, read 2,860,207 times
Reputation: 655
Rising interest rates... Our first joint mortgage, in 2000, was for 6.875% interest. And it was a GREAT deal at the time although I do like my current 4.5% rate better. I think my parents interest rate when they first got their house in the 1970's was 13% or 14%...
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Old 02-11-2011, 07:44 AM
 
Location: Spartanburg, SC
4,902 posts, read 7,472,195 times
Reputation: 3877
Quote:
Originally Posted by mdcrim View Post
Rising interest rates... Our first joint mortgage, in 2000, was for 6.875% interest. And it was a GREAT deal at the time although I do like my current 4.5% rate better. I think my parents interest rate when they first got their house in the 1970's was 13% or 14%...
Tell me about it. We were trying to sell our first house during the Jimmy Carter years . . . remember interests rates under that guy? And gas lines? And Iran?

Oh, deja vu.


But to all you buyers waiting for stuff to drop further . . . you better grab these rates while you can.
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Old 02-11-2011, 08:30 AM
 
Location: Washington DC
487 posts, read 1,359,984 times
Reputation: 522
Quote:
Originally Posted by LynchburgLover View Post
OP, are ya stilling "holding the line"? Might want to check those rising interest rates . . .
Yes.
Higher interest rates mean lower home prices.

If you buy now at a price you can afford with a 5% mortgage.
How much do you think you will be able to get for your home when you need to sell and interest rates are significantly higher?

Maybe Not as much.
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Old 02-11-2011, 08:31 AM
 
Location: Washington DC
487 posts, read 1,359,984 times
Reputation: 522
Quote:
Originally Posted by LynchburgLover View Post
Tell me about it. We were trying to sell our first house during the Jimmy Carter years . . . remember interests rates under that guy? And gas lines? And Iran?

Oh, deja vu.


But to all you buyers waiting for stuff to drop further . . . you better grab these rates while you can.

Just a quick note.
I don't think we are wanting prices to decline.
I'm sure not.
I just don't want to see a price spike now for no good reason.
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Old 02-11-2011, 09:14 AM
 
Location: Fairfax, VA
59 posts, read 162,663 times
Reputation: 71
The local economy is very sensitive to the availability of high paying government jobs and contracts. Although the job economy is strong now (which explains why housing prices in NoVA are climbing), the future is not so sunny for the continuing avaiability of high paying federal jobs. Huge unsustainable government deficits, underfunded liabilities in medicare and social security, and a growing backlash against federal spending and low taxes are a threat to the local job market.

Additionally, Obama and Republicans agree that Fannie Mae and Freddie Mac (which guarantee 90% of mortgages) either need to go or need to be drastically scaled back. The government wants the mortgage business to revert to private industry - this move would certainly cause interest rates to rise and could supress housing prices. Additionally, the Washington Post recently reported that the government is suggesting lowering the FHA's maximum mortgage threshold from $729,750 to $362,790 (in pricey areas like NoVA) in a move to return the FHA to their roots of supporting low income and first time home buyers. Recently, the FHA has been proping up the mortgage industry after the housing collapse by offering low interest, low downpayment loans for larger mortgages. The FHA currently accepts down payments as low as 3%. I think that will change since the FHA and its large mortgage, low down payment philosophy is becoming a threat to taxpayer money.

All these moves could further supress housing prices in the area.

Sources: White House: Limit gov't backing of mortgages (http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021101059.html - broken link)

Size of FHA-backed mortgages should shrink, report says
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Old 02-12-2011, 08:45 AM
 
Location: Bettendorf, IA
449 posts, read 1,396,526 times
Reputation: 211
Quote:
Originally Posted by tigger37708 View Post
Yes.
Higher interest rates mean lower home prices.

If you buy now at a price you can afford with a 5% mortgage.
How much do you think you will be able to get for your home when you need to sell and interest rates are significantly higher?

Maybe Not as much.
If interest rates go up gradually over the next couple of years, say a half a percentage point each year, that will not affect prices one way or another. If interest rates spike up, then yes. However, during the 1970s interest rates went through the roof. Each year the percentage ticked up 2 or 3 percentage points higher. That did not stop real estate prices from sky rocketing.
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Old 02-12-2011, 08:56 AM
 
Location: Bettendorf, IA
449 posts, read 1,396,526 times
Reputation: 211
Quote:
Originally Posted by novaslasher View Post
The local economy is very sensitive to the availability of high paying government jobs and contracts. Although the job economy is strong now (which explains why housing prices in NoVA are climbing), the future is not so sunny for the continuing avaiability of high paying federal jobs. Huge unsustainable government deficits, underfunded liabilities in medicare and social security, and a growing backlash against federal spending and low taxes are a threat to the local job market.

Additionally, Obama and Republicans agree that Fannie Mae and Freddie Mac (which guarantee 90% of mortgages) either need to go or need to be drastically scaled back. The government wants the mortgage business to revert to private industry - this move would certainly cause interest rates to rise and could supress housing prices. Additionally, the Washington Post recently reported that the government is suggesting lowering the FHA's maximum mortgage threshold from $729,750 to $362,790 (in pricey areas like NoVA) in a move to return the FHA to their roots of supporting low income and first time home buyers. Recently, the FHA has been proping up the mortgage industry after the housing collapse by offering low interest, low downpayment loans for larger mortgages. The FHA currently accepts down payments as low as 3%. I think that will change since the FHA and its large mortgage, low down payment philosophy is becoming a threat to taxpayer money.

All these moves could further supress housing prices in the area.

Sources: White House: Limit gov't backing of mortgages (http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021101059.html - broken link)

Size of FHA-backed mortgages should shrink, report says
You hit the nail on the head. I too believe the government really wants to get out of the home mortgage process with the exception of reverting back to the original concept of FHA (first time home buyers) and VA loans. It wants privatge industry to handle the rest. Of course that means that interest rates will rise as for-profit companies will rightfully demand to be compensated providing loans in this risky time. The federal government is now putting their emphasis on developing rental housing programs for people thereby getting out of home ownership programs.
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Old 02-12-2011, 11:05 AM
 
Location: Spartanburg, SC
4,902 posts, read 7,472,195 times
Reputation: 3877
Quote:
Originally Posted by tigger37708 View Post
Yes.
Higher interest rates mean lower home prices.

If you buy now at a price you can afford with a 5% mortgage.
How much do you think you will be able to get for your home when you need to sell and interest rates are significantly higher?

Maybe Not as much.
Okay . . . keep waiting and throwing that rent money away. Did you see this in the Wall Street Journal?
Why You Should Buy that Home Now - SmartMoney.com
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