Stretching to Buy a home

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

Agree with immediate PP. OP all of your wants are understandable but they are wants, not needs. The kitchen isn't a big deal if you're planning a reno, so there's no reason to put it on the checklist up front. Placement of laundry is a not a big deal, if you're redoing all the bathrooms you can move it upstairs at that time. My guess is 4 bedrooms upstairs is the real killer - you're essentially looking for 5+ bedroom houses with that requirement. Depending on ages of the kids I'd rather they share a room until one can be on a different level than spend an extra $300k, but it takes all kinds.

[Anonymous]

What is SES? I think you mean high SES?

Anyway, I haven’t read the whole thread but would you consider DC or Maryland at all? I can think of several neighbourhoods there were you can get a decent home with decent schools for 1.3 or less. The schools will have more socioeconomic diversity, so I’m not sure if that’s something you’re trying to avoid.

[Anonymous]

Anonymous wrote:What is SES? I think you mean high SES?

Anyway, I haven’t read the whole thread but would you consider DC or Maryland at all? I can think of several neighbourhoods there were you can get a decent home with decent schools for 1.3 or less. The schools will have more socioeconomic diversity, so I’m not sure if that’s something you’re trying to avoid.

Oh, and these homes will be older but renovated. Wanting a home less than 10 years old narrows down your choices a lot and means you won’t get the gracious feel of an older established neighbourhood with established trees, etc.

[Anonymous]

Anonymous wrote:What is SES? I think you mean high SES?

Anyway, I haven’t read the whole thread but would you consider DC or Maryland at all? I can think of several neighbourhoods there were you can get a decent home with decent schools for 1.3 or less. The schools will have more socioeconomic diversity, so I’m not sure if that’s something you’re trying to avoid.

SES is a government pay grade. It's part of the DC vernacular.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is SES? I think you mean high SES?

Anyway, I haven’t read the whole thread but would you consider DC or Maryland at all? I can think of several neighbourhoods there were you can get a decent home with decent schools for 1.3 or less. The schools will have more socioeconomic diversity, so I’m not sure if that’s something you’re trying to avoid.

SES is a government pay grade. It's part of the DC vernacular.

Senior Executive Service
https://www.opm.gov/policy-data-oversight/senior-executive-service/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

Agree with immediate PP. OP all of your wants are understandable but they are wants, not needs. The kitchen isn't a big deal if you're planning a reno, so there's no reason to put it on the checklist up front. Placement of laundry is a not a big deal, if you're redoing all the bathrooms you can move it upstairs at that time. My guess is 4 bedrooms upstairs is the real killer - you're essentially looking for 5+ bedroom houses with that requirement. Depending on ages of the kids I'd rather they share a room until one can be on a different level than spend an extra $300k, but it takes all kinds.

Make them share rooms. This is an easy fix that is probably good for the kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

Agree with immediate PP. OP all of your wants are understandable but they are wants, not needs. The kitchen isn't a big deal if you're planning a reno, so there's no reason to put it on the checklist up front. Placement of laundry is a not a big deal, if you're redoing all the bathrooms you can move it upstairs at that time. My guess is 4 bedrooms upstairs is the real killer - you're essentially looking for 5+ bedroom houses with that requirement. Depending on ages of the kids I'd rather they share a room until one can be on a different level than spend an extra $300k, but it takes all kinds.

Make them share rooms. This is an easy fix that is probably good for the kids.

That’s fine when the kids are young, but we have a mix of ages and genders that really doesn’t work long term. And they have all 3 shared a bedroom for the last 6 years in our rental, so we wanted to give them some space finally after these MONTHS of togetherness.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is SES? I think you mean high SES?

Anyway, I haven’t read the whole thread but would you consider DC or Maryland at all? I can think of several neighbourhoods there were you can get a decent home with decent schools for 1.3 or less. The schools will have more socioeconomic diversity, so I’m not sure if that’s something you’re trying to avoid.

SES is a government pay grade. It's part of the DC vernacular.

PP here, okay. I've never heard of this (and I live in DC).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:By the way. Stretching doesn’t belong in the title for about a near 1%er buying a home in one of the wealthiest communities on the planet. And at less than 5 times income it isn’t the case anyway.

So much confusing replies. One is aghast we are paying $6000/month, other PP are like, check your privilage.

All I know is I'm just floored to even consider spending this much for a house, but am so desperate for yard and a decent kitchen all reason has left me, hence the appeal to DCUM hive mind.

I'm sorry but you can afford to buy a house anywhere in the DC area, so this is very easy even in the elite neighborhoods you're looking in. Just make a decision if you want to do renovations. That seems to be the issue. Otherwise, buy a new home in the $1.6M+ range which you can easily afford with your income and asset position.

Right?! They're worrying about a $6K mortgage payment when they're likely netting $17K a month after taxes and maxing out their TSP? If only I could consider that a "stretch!"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Stocking away $600k cash and $800k retirement is making bad decisions?

Maybe their $600k was a recent cash-out from trade accts.

Good Job OP for having the discipline to save so much. Good luck with your house search.

Also, I'm floooooored that having this kind of budget doesn't get you everything you want in Arlington. I've been away from NoVA for too long....

I think it does. OP must have very high tastes.

We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

OP, I hear you. We live in Arlington and I think there’s a definite gap in the market between 1.2 and 1.6 mill. There have been a few houses popping up recently, but most of them are west of Glebe. You are more likely to find what you’re looking for if you expand your search to the Lee Hwy/Washington Blvd corridor west of Glebe. It might benefit you as well, bc Key/Science Focus/Taylor communities are going to go through a lot of changes in the next few years. Honestly, I think you’re going to have to bump your budget to $1.5. There was a house off of George
Mason a few weeks ago, 5 bedrooms upstairs, good size yard. I don’t know how much it Went under contract for, but there were a LOT of people looking, so I assume above asking (I think it was 1.39). Also, if you expand your search zone you can get a new build by a better builder - I personally wouldn’t buy a evergreen/bin/beacon crest home. I would look for Spring Street/MR Dev/Cherry Hill

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

Agree with immediate PP. OP all of your wants are understandable but they are wants, not needs. The kitchen isn't a big deal if you're planning a reno, so there's no reason to put it on the checklist up front. Placement of laundry is a not a big deal, if you're redoing all the bathrooms you can move it upstairs at that time. My guess is 4 bedrooms upstairs is the real killer - you're essentially looking for 5+ bedroom houses with that requirement. Depending on ages of the kids I'd rather they share a room until one can be on a different level than spend an extra $300k, but it takes all kinds.

Make them share rooms. This is an easy fix that is probably good for the kids.

That’s fine when the kids are young, but we have a mix of ages and genders that really doesn’t work long term. And they have all 3 shared a bedroom for the last 6 years in our rental, so we wanted to give them some space finally after these MONTHS of togetherness.

Wait, are your kids young or not? If they're too old to share bedrooms then they're old enough that it's not necessary they all be on the same floor. If they're young enough that you need them all on the same floor with you, then they're young enough to share bedrooms.

You're getting a yard, a whole house, probably a finished basement with a rec room/play space - you are giving them much more space than an apartment. They're absolutely going to see it as a huge improvement unless you put it in their heads that they're still slumming it in a $1.5M house just because they have bunk beds for a couple of years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

Agree with immediate PP. OP all of your wants are understandable but they are wants, not needs. The kitchen isn't a big deal if you're planning a reno, so there's no reason to put it on the checklist up front. Placement of laundry is a not a big deal, if you're redoing all the bathrooms you can move it upstairs at that time. My guess is 4 bedrooms upstairs is the real killer - you're essentially looking for 5+ bedroom houses with that requirement. Depending on ages of the kids I'd rather they share a room until one can be on a different level than spend an extra $300k, but it takes all kinds.

Make them share rooms. This is an easy fix that is probably good for the kids.

That’s fine when the kids are young, but we have a mix of ages and genders that really doesn’t work long term. And they have all 3 shared a bedroom for the last 6 years in our rental, so we wanted to give them some space finally after these MONTHS of togetherness.

Wait, are your kids young or not? If they're too old to share bedrooms then they're old enough that it's not necessary they all be on the same floor. If they're young enough that you need them all on the same floor with you, then they're young enough to share bedrooms.

You're getting a yard, a whole house, probably a finished basement with a rec room/play space - you are giving them much more space than an apartment. They're absolutely going to see it as a huge improvement unless you put it in their heads that they're still slumming it in a $1.5M house just because they have bunk beds for a couple of years.

There is no age under 18 I sending my kid to sleep in the basement when we are two flights up.

[Anonymous]

I don’t understand why you felt the need to post. You have the money. So spend it and get what you want. Or compromise on a few things. Get rid of the dream house mentality and you will be fine. How old are you and your DH?

[Anonymous]

Anonymous wrote:Only on this forum are people with $400K HHIs grappling with whether they should stretch to buy a house. You can't find a $1.2M house that meets your needs? Really? We make close to what you do and there is no way I would borrow $1M even though I could. Maybe we have low standards. At your income, you should be investing for retirement outside of your TSPs. A different perspective is take advantage of your position of having a $600K+ downpayment to take out less mortgage and use your high income to invest for early financial independence. Also, if I were to borrow $1M with children, I'd want to each spouse to have $1.5-$2M in life insurance and a good long-term disability policy that replaced my income until age 65.

Only on this forum do people think they "need" $250,000 to do a kitchen repair and fix up a few bathrooms. Absolute insanity. Either you are getting bathrooms with bidets, marble floors, and gaudy gold fixtures or you are getting hosed by a general contractor who preys on clueless UMC and rich folks.

[Anonymous]

Maybe you should consider moving away from Arlington? You could buy both of these for $975,000 or less (you could bid the second one down below $900,000) and be in the Bethesda-Chevy Chase HS district and walkable to Metro. A much, much better high school than anything you can find in Arlington and an easy commute to DC.

https://www.redfin.com/MD/Chevy-Chase/7411-Ridgewood-Ave-20815/home/10643922

https://www.redfin.com/MD/Chevy-Chase/4207-Stanford-St-20815/home/10642274

Before you knock the idea, I suggest taking a walk in that neighborhood. It's nicer and more charming than any neighborhood in Arlington at that price point, with better amenities nearby and better schools. You could make either of these houses shine with $300,000 or $350,000 and this budget would give you far more than enough to build an addition if needed.