Wait or Buy? First time home buyer need opinions! (Arlington: sales, apartment)

[Natthapol]

Dear NOVA City-Data members,

I and my wife are the first time home buyer and I have been observing the market in Vienna/Fairfax area for a few months. We have the budget around $650K max and we would like to get a relatively newer townhome close to the metro station as I work in DC (Faragut West) and my wife work everywhere depending on her clients (DC, Tysons, Fairfax, Alexandria and etc..) We don't have kids yet but we are planning to have one(s) in a few years so school will also be an important factor for us.

We came across the Metro West project

http://www.liveatmetrowest.com/eblas...t_SitePlan.pdf

The great thing about the project is the walkable location to Vienna metro and we really like the idea of having access to retails, parks and community center (yet to be developed).

We are almost ready to buy but we are being torn by the price. The base price of the 1,942 sq-feet townhome is set to $624K (pre-construction price) and with options that would make the townhome look the way we want, we have to pay additionally around $30K (for upgrades on hard woord floor, appliances, carpet, bathroom tiles, recessed light, wiring and etc..) which will put the price close to whopping $655K which will make it $337 per sqft!


The sales team told us that they have already sold 8 units and the model homes are not even built yet! (five 1,448 sqft units, two 1,942 sqft units and one 2,470 sqft units) in the past 11 days and they claimed that they have a lot of demands (which I believe that it is somewhat true as it take them 10 days to call back to me to schedule an appointment with me). They offer no room for negotiation at all!


Would you wait for buy if you are in our shoe? We are in no rush to purchase but at the same time, we are afraid that the price that price will go up. There are altogether 200+ units in the project, we are wondering what will happen to the price in fall and winter?


Any comments, thoughts would be highly appreciated!

P.S. We also posted another thread about our home search here:

https://www.city-data.com/forum/north...800-sq-ft.html

[bmwguydc]

Most new home builders do not allow negotiation on price, but may be willing to work with you on options, especially if you are adding much to the cost of the home. The waiting to return your call may not indicate a busy sales force, but that they are just in the beginning phase of sales, where a sales manager can still be at another site, and they do not yet have an on-site assistant because of a lack of a model home, or a trailer that's not yet ready at the build site while the models are under construction.

Would there be popularity because of the Vienna Metro? Yes, but I do not think that should preclude returning phone calls in a timely manner, and scheduling appointments with prospective purchasers. Some of the sales may have been co-op deals as well, where an outside broker/agent brought a purchaser to the builder's representative, so it may not be a measure of the heightened demand that they are trying to create with respect to the project. I would not fall prey to a marketing gimmick, since this is not a boom period for new home construction, and people are not camping out to get in on pre-construction pricing specials.

Given the current (as of this writing) state of their website, where they say "coming soon," under hours, I think it's more a factor of not having someone on-site as to the delay in returning your request for an appointment than being swamped with sales. I would also not worry to much about contracts written, as there can be cancellations for several reasons during the construction process, where units drop out of contract, especially when purchased during the very early sales period. However, it is clear that the area will be popular, given the existing sales in the area (some of which were also built by Pulte). If the unit you desire is on a short list, as in a few end units with the amenities you want, etc., then I can see purchasing as early as possible; however, with over 2,000 units to be developed, I would not exactly worry about a lack of supply in the general sense, though your preferred unit may not be as plentiful as others.

Having a development near the Metro is a plus for your commute, as you do not have to drive/take the city bus to the Metro; however, the schools may not be accurate to forecast when you need them, depending upon boundaries and number of children that may be added to the existing school assignments in the area, something that can also change as the project progresses. As I posted in your other thread, that's not likely to be a factor in the city, where you are within walking distance of the elementary school. The other thing to consider is a manufactured community with a community center as an anchor versus an existing community that has the addition of townhouses to the varied mix in the city. That's really more of a personal preference, since some like planned communities, while others prefer to live in a community that is part of a larger area that's not all developed/built by a single/handful of builders.

[scottfs]

My buddy lives in an apartment right next to the development site. Been watching them move dirt around the last few months...whenever he comes over to my house his car is covered in dirt from the activity!

Anyway, it's a nice area and the proximity to the metro is great, but I just don't think I would want to pay that much! The only thing that's really "walkable" about that location is the metro itself. Otherwise, you still have to drive mostly everywhere you want to go.

I've looked into new construction in the past, and the sales people always talk about how well they're selling, it's just like when you go into a car dealership. "Buy NOW before they're all GONE!" It's a sales tactic. Try signing their contract and then try to get out of it. It will be a totally different story, they suddenly won't have such a rush of buyers to talk about!

It sounds like you're into new construction, but with that kind of money, I think you could get a nice SFH and still have plenty of $ left over to update the way you want it...something to consider.

BTW, are there any other reasons you're set on a TH? Ever notice that builders these days mostly build either THs of varying size/quality, or what I'd consider fairly large SFHs? The days of the medium-sized SFH are gone around here, because the land is worth so much. So they are cramming as much $ worth of sales into a very small piece of land, to make it more profitable. They could easily fit $3-4M worth of THs onto the amount of land my early 60s brick rambler sits on. Just something to consider with a TH...what are you really paying for? Not saying THs are necessarily bad, they aren't, but just something to think about IMO.

[Middlin]

I do think it's a wise investment and would shoot for closest to the metro since people will put the biggest premium on that. That said, given your previous posts I think that you will find yourself house poor when kids come along. I would be living financially now like you have that type of mortgage.

[vermonter16]

I think you'll probably know when it is right. You'll just feel it. You're obviously concerned about the price, etc. I would wait unless you have your heart set on it.

[pvnova]

Originally Posted by Natthapol

school will also be an important factor for us.

We came across the Metro West project

Mosby Woods ES. 32% free lunches.

You can buy a decent colonial with good schools for less money:
http://www.redfin.com/VA/Vienna/1022...1/home/9440490

Or if walking distance to metro is important, there is that one
2601 LEMONTREE Ln, VIENNA, VA 22181 | MLS# FX7620824

It could probably be bought for the same $670K.

Although without kids and with work often in DC/Arlington, I would buy (or even rent) a condo in Ballston, Clarendon etc.

[vermonter16]

Those houses are absolutely gorgeous! Especially the first one. The second one could use a little updating but if location is priority....otherwise that first one is awesome!

[tigger37708]

Don't forget the Mortgage aspect of the decision.
Rates are extremely low now.
And from What I am hearing Down payment requirements could be Much higher in the near future than they are now.

[scottfs]

Originally Posted by tigger37708

Don't forget the Mortgage aspect of the decision.
Rates are extremely low now.
And from What I am hearing Down payment requirements could be Much higher in the near future than they are now.

Very true...another thing one might consider with today's low rates is talking to a lender about whether "recasting" or a "reamortization" would be possible (Article on recasting) at a later date if you wanted to sink some cash into the principal and achieve a lower monthly pmt. (I.e. you have kids and your wife decides she'd like to stay home) Because if rates are at historical low's refinancing will probably never make sense in the future. It's not always a good idea but nice to have the option I think.

[Natthapol]

Originally Posted by tigger37708

Don't forget the Mortgage aspect of the decision.
Rates are extremely low now.
And from What I am hearing Down payment requirements could be Much higher in the near future than they are now.

I haven't been following the trend but I know that the rate is very good right now? Why do a lot of people think that the rate will go up in the very near future? How near are we talking about? Won't the mortgage rate go down even more in fall / winter when the market is not as active?