Are sellers cutting prices in your area?

[Anonymous]

Anonymous wrote:https://www.zillow.com/homedetails/8200-Old-Oaks-Dr-Springfield-VA-22152/51909471_zpid/?mmlb=g,8

This kind of thing kills me. Cheap, cheap flip. They did not change out any of the doors or put in anything special like crown molding. The bathrooms were done on the cheap with no real tile there. Just some paint and new light fixtures (not even something like recessed lighting). They tore out no walls so kitchen is small and they have put a table in there (which makes it look even smaller). It probably has an old HVAC system and old wiring. No landscaping in yard. Price is way too high.

Someone will still buy it

[Anonymous]

Nope! Another bidding war on a 60 year old house on a street adjacent to us. So far this house was my best ROI yet.

[Anonymous]

Anonymous wrote:https://www.zillow.com/homedetails/8200-Old-Oaks-Dr-Springfield-VA-22152/51909471_zpid/?mmlb=g,8

This kind of thing kills me. Cheap, cheap flip. They did not change out any of the doors or put in anything special like crown molding. The bathrooms were done on the cheap with no real tile there. Just some paint and new light fixtures (not even something like recessed lighting). They tore out no walls so kitchen is small and they have put a table in there (which makes it look even smaller). It probably has an old HVAC system and old wiring. No landscaping in yard. Price is way too high.

It's in the area that will be re-districted for schools too...just don't tell the new buyers!

[Anonymous]

Yes prices being cut across the dmv. No longer a secret and it’s got nothing to do with the summer lull

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same.

+1

Getting 600K after 3 years is not the same as getting it now.

500K lsst 2 years would have produced safe 50K in interests without any risk.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same.

True, and that's why I said sometimes and used $200-300K as the example. Plus we have a loan and the payments are just principal now. If we decide to rent it then the math skews even more towards not taking that $200-300K cut on price because we could net a good profit. Also we lost a bit in the stock market when it tanked so the diversification of assets is appealing. There's no guarantee that the stock market would yield significant returns over the next 1-2 years, and the second home market usually goes up and down with the stock market anyway.

Time will tell if this was the right move or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

If selling is being driven by job loss or relocation and the home is a primary residence then the calculation will be very different.

The WaPo just published a very bleak article on of the DC economy, which looks better on paper right now because of deferred resignation programs: https://apple.news/AD9Ubpm5hRHikb07Dw5IMCw

I think the market will recover eventually, but it could be up to 10 years.

Yes and no. Realistically, no administration will add back all the jobs that are being lost and these layoffs will likely accelerate the use of AI within the government just like in under private sector. Private sector jobs are also being shed at a pretty alarming rate and then on top of this you have lower property tax revenues in DC proper and ballooning unemployment payments across the region. This mix will depress the region and could lead to a weaker job market and housing market for well over a decade. It seems like it’s too early to tell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same.

True, and that's why I said sometimes and used $200-300K as the example. Plus we have a loan and the payments are just principal now. If we decide to rent it then the math skews even more towards not taking that $200-300K cut on price because we could net a good profit. Also we lost a bit in the stock market when it tanked so the diversification of assets is appealing. There's no guarantee that the stock market would yield significant returns over the next 1-2 years, and the second home market usually goes up and down with the stock market anyway.

Time will tell if this was the right move or not.

For 1-2 years, stock market is not a good idea.

It's not hard to see if something is a decent idea.

You just see what asset is producing. Assume no loans. Based on most places, I see 3-4% yield after taking account of maintainance, empty rental during changes, property tax etc. Rental became less attractive with treasury rates in 4-5% range in the last few years. If and when it drops to 1-2% then same rental yield will become attractive. Taking 6-7% loan is not a great idea with rental yield of 3-4% as well.

I agree that calcualtion will be different for different poeple based on rates, but it's pretty easy to see big picture. I also agree that having some diversification is good for most families. You always don't need to maximize retursn, as long as decent enough returns with dertainly, it works. Real estate will mostly work for most families due to leverage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes and some have been removed from the market and relisted as rentals.

+2

My DH and I are moving our family into a larger house and listing our current house as a rental. I think we would be lucky to break even if we sold. Makes more sense to rent right now. (Luckily we can afford to do this.)

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. Our carrying costs are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same.

True, and that's why I said sometimes and used $200-300K as the example. Plus we have a loan and the payments are just principal now. If we decide to rent it then the math skews even more towards not taking that $200-300K cut on price because we could net a good profit. Also we lost a bit in the stock market when it tanked so the diversification of assets is appealing. There's no guarantee that the stock market would yield significant returns over the next 1-2 years, and the second home market usually goes up and down with the stock market anyway.

Time will tell if this was the right move or not.

For 1-2 years, stock market is not a good idea.

It's not hard to see if something is a decent idea.

You just see what asset is producing. Assume no loans. Based on most places, I see 3-4% yield after taking account of maintainance, empty rental during changes, property tax etc. Rental became less attractive with treasury rates in 4-5% range in the last few years. If and when it drops to 1-2% then same rental yield will become attractive. Taking 6-7% loan is not a great idea with rental yield of 3-4% as well.

I agree that calcualtion will be different for different poeple based on rates, but it's pretty easy to see big picture. I also agree that having some diversification is good for most families. You always don't need to maximize retursn, as long as decent enough returns with dertainly, it works. Real estate will mostly work for most families due to leverage. But at current sitaution, leverage is working against families if they take loan right now.