Big Builds in Bethesda Not Selling

[Anonymous]

My Old town counted fit, finish, sq footage and age in assessment values.

A new build paid double per sq foot than an older build. Plus new builds usually more sq footage and higher build quality.

Property taxes my old area used to be like 7.5k for a split level house from 1950s with no central air and 1,500 sf.

My neighbor up block tore down old 1,500 sf house in original condition and built a 3,000 sf high end mansion. Taxes of course based on size moved from $7,500 to $15,000 then taxed at double as new built so $30,000 then he put a pull in finished basement, central Air, deck and higher end materials so another 6K.

He is now paying $36,000 property tax vs. $7,500. We had extremely few tear downs and new homes. I say 99 percent of 1950s homes are as is when built. Which leaves tons of nice starter homes or empty nestor affordable homes.

Folks can move to towns where big new homes exist. It left my town a family friendly popular town for newly weds, blue collar people, empty nestors. I did trade up after 20 years adn moved. Why, well if I tore down and moved that 36K taxes would make my house very hard to sell plus I did not want to pay them.

Bethesda should do this. Tax the hell out of new builds.

[Anonymous]

Amen! We should tax the hell out of new builds and their double air conditioning units as the world warms. Imagine doing something concrete rather than the performative BS we see from champagne socialists of Montgomery County.

Anonymous wrote:My Old town counted fit, finish, sq footage and age in assessment values.

A new build paid double per sq foot than an older build. Plus new builds usually more sq footage and higher build quality.

Property taxes my old area used to be like 7.5k for a split level house from 1950s with no central air and 1,500 sf.

My neighbor up block tore down old 1,500 sf house in original condition and built a 3,000 sf high end mansion. Taxes of course based on size moved from $7,500 to $15,000 then taxed at double as new built so $30,000 then he put a pull in finished basement, central Air, deck and higher end materials so another 6K.

He is now paying $36,000 property tax vs. $7,500. We had extremely few tear downs and new homes. I say 99 percent of 1950s homes are as is when built. Which leaves tons of nice starter homes or empty nestor affordable homes.

Folks can move to towns where big new homes exist. It left my town a family friendly popular town for newly weds, blue collar people, empty nestors. I did trade up after 20 years adn moved. Why, well if I tore down and moved that 36K taxes would make my house very hard to sell plus I did not want to pay them.

Bethesda should do this. Tax the hell out of new builds.

[Anonymous]

Anonymous wrote:Amen! We should tax the hell out of new builds and their double air conditioning units as the world warms. Imagine doing something concrete rather than the performative BS we see from champagne socialists of Montgomery County.

Anonymous wrote:My Old town counted fit, finish, sq footage and age in assessment values.

A new build paid double per sq foot than an older build. Plus new builds usually more sq footage and higher build quality.

Property taxes my old area used to be like 7.5k for a split level house from 1950s with no central air and 1,500 sf.

My neighbor up block tore down old 1,500 sf house in original condition and built a 3,000 sf high end mansion. Taxes of course based on size moved from $7,500 to $15,000 then taxed at double as new built so $30,000 then he put a pull in finished basement, central Air, deck and higher end materials so another 6K.

He is now paying $36,000 property tax vs. $7,500. We had extremely few tear downs and new homes. I say 99 percent of 1950s homes are as is when built. Which leaves tons of nice starter homes or empty nestor affordable homes.

Folks can move to towns where big new homes exist. It left my town a family friendly popular town for newly weds, blue collar people, empty nestors. I did trade up after 20 years adn moved. Why, well if I tore down and moved that 36K taxes would make my house very hard to sell plus I did not want to pay them.

Bethesda should do this. Tax the hell out of new builds.

I have a 1500 sq ft townhouse and it has two AC units. It’s four levels and I think you need two units because of that.

[Anonymous]

Anonymous wrote:Those are not in the most desirable parts of Bethesda, not even close. The new builds in 20814 and 20816 still seem to be all be pushing $3 or $4 million. I’m not even sure why we’re talking about NIH. Of course Bethesda is not affordable anymore for NIH workers but that’s been true for many years. The best properties in Bethesda are still selling to the law firm partners, doctors, and business execs, just as has always been the case. Who do you think is affording the exorbitant tuition at Landon, Holton, and the like?

And yet houses in this neighborhood have pushed to nearly $3M, just not this season.

[Anonymous]

Anonymous wrote:I don’t know anyone working at NIH that could afford a $2+ million house. Even Facui topped out at $300-something thousand a year.

Right. Those houses certainly weren't going to go to NIH employees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The second one is awful

Came here to say this. The second one is really terrible. Everything is odd--especially the huge second story porch on the front of the house. Who would want that? Ugh.

OP--I completely agree. If these were 4-5 bedrooms with slightly less square footage in the $1.6-$1.8 range, they'd sell quickly (even given how dumb the second one's design choices are). It doesn't make sense.

The second house was a heavy remodel, not a new construction. That's probably why it's so wonky.

I don't know why anyone would choose to build/sell a a 4-5 bedroom house for $1.8M if they thought adding another bedroom would get them $2.4-2.8M. You're getting a much larger profit with the latter.

[Anonymous]

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

They're big, but not outrageously so. The first house wouldn't be used as a six bedroom house. One of the rooms would probably be as office. The top level room would probably be a play/craft room. I like it a lot, but certainly not for $2.8M.

[Anonymous]

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

First house build quality is poor. Cracks and poor finsihing which you can see from outside. You can only guess what's inside the walls.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

First house build quality is poor. Cracks and poor finsihing which you can see from outside. You can only guess what's inside the walls.

Houses owned by LLC made specifically for a house are hit and miss. Some time you get decent one and some time you get bad ones.

[Anonymous]

So are these houses actually private equity trying to increase housing values? As in, they don’t care if anyone actually lives in them or not?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

First house build quality is poor. Cracks and poor finsihing which you can see from outside. You can only guess what's inside the walls.

Houses owned by LLC made specifically for a house are hit and miss. Some time you get decent one and some time you get bad ones.

[Anonymous]

Anonymous wrote:So are these houses actually private equity trying to increase housing values? As in, they don’t care if anyone actually lives in them or not?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

First house build quality is poor. Cracks and poor finsihing which you can see from outside. You can only guess what's inside the walls.

Houses owned by LLC made specifically for a house are hit and miss. Some time you get decent one and some time you get bad ones.

Private equity may be horrible in many ways, but I very much doubt they're building $3 million houses hoping that they don't sell as a means to increase property values in Bethesda.

[Anonymous]

Anonymous wrote:So are these houses actually private equity trying to increase housing values? As in, they don’t care if anyone actually lives in them or not?

I am not the PP, but I will answer.

Private equity is not buying it. It's some small time contractor registering each house as LLC independently to avoid taking liabilities. Normally any reputed builder will own the new build in their own name and not under LLC created just to register one single house. Those are the better builders and they are likely to stand behind their work and have reputation to protect. Even those ones are sometime not great, but these LLC for single house means a red flag.

I took a quick look at this property, LLC registration, address etc. It seems the first listing is done by some contractor who has not build any house previously. They are not some established builder in business for decades. No wonder some one commented about cracks and finish not being good. Seller of this house will be LLC( created just for this house) so cracks or any problems may have very little impact on builder after house is sold.

I have not seen the house. Just commenting here. I used to work in related field.

[Anonymous]

Anonymous wrote:Why do builders create these monstrosities with no yards that dwarf all the neighbors? They then sit. Why not build something more in line with the neighborhood that would sell faster? If it takes a year to sell was that extra bedroom or two worth it??

https://www.zillow.com/homedetails/8916-Oneida-Ln-Bethesda-MD-20817/37174409_zpid/

https://www.zillow.com/homedetails/8908-Mohawk-Ln-Bethesda-MD-20817/37174313_zpid/

We visited both,

One is done by fly by night operator. Work is shoddy in many places.

Second one is horrible wrong design choice and also reusing the old basement. Done by some one who builds in DC and mostly commercial. So poor design choice makes sense.

[Anonymous]

Oneida for $2.8m would be the second highest sale price on record for a house on less than half acre in Walter Johnson.

[Anonymous]

Median and average price for new construction in Walter Johnson is probably around $2 million. It is not surprising that it might take longer than normal to sell. Finishes are nice for Walter Johnson spec construction.