Another how much PITI can we afford post

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, we have a similar salary, but higher 401(k) and 529 balances and less equity in our current home (we expect about $250K when we sell). We are looking in the $4500-$4700 range. I suspect this means we are looking at very similar homes -- the further out you get, the more house you get for your money. If you're in Virginia, the further south you go, the more house you get for your money. Look in Springfield/Burke/Fairfax Station for good schools in that price range.

+1

You'll be spending 900k minimum.

I don't think so--looking at single family houses sold in the last 90 days in Burke and Kings Park West there are loads of houses sold in the 700-900k range. Same when you enter last 2 weeks.

[Anonymous]

Anonymous wrote:Op, where are you commuting to? I see Alexandria for your DH; are you heading to DC?

You noted your salaries and growth trajectories. I presume you are both feds?

I think your $800-$900K budget is good and workable.

What about the Fort Hood area? I see houses in your range there as well.

Sorry OP, I meant the Fort HUNT area of Alexandria. (Silly autocorrect.)

[Anonymous]

Hi OP, we're fairly close to your income level, about same down payment and were looking in Burke/Springfield. I said were looking, because we stopped. It's impossible to find anything without getting into massive bidding wars, escalating, and basically buying a 40-50 year old house on a whim. We are risk adverse and couldn't do it. I have also had to stop working multiple times over my career, and an anticipating having to potentially do that again in the next year, so we are very fiscally conservative.

[Anonymous]

Anonymous wrote:Hi OP, we're fairly close to your income level, about same down payment and were looking in Burke/Springfield. I said were looking, because we stopped. It's impossible to find anything without getting into massive bidding wars, escalating, and basically buying a 40-50 year old house on a whim. We are risk adverse and couldn't do it. I have also had to stop working multiple times over my career, and an anticipating having to potentially do that again in the next year, so we are very fiscally conservative.

DP: I agree that inventory is low, but the sold prices don't seem too out of normal so, sure, there are multiple bids, but it seems like they aren't escalating prices significantly. I do know that can be a stressful situation, but you just put in your max bid, don't forego an inspection, and don't get caught up in the hype. I think a lot of it is just psychological--you just have to establish your principles and keep to them and understand it might take a little longer and expect to put a lot of bids out there. We bought our house in a competitive time in our market with multiple bidders and this helped us--very glad we did it because prices haven't done anything but go up since.

I do think your uncertainty over your career is the bigger issue though--I wouldn't move into a house we couldn't afford without my salary if I didn't feel confident about my job either. Good luck to you!

[Anonymous]

OP here.

I've been following the Burke, West Springfield, Fairfax, Annandale (Wakefield HS area) real estate sales.

It seems like to purchase in that area at a max of $900k, we'll need to target houses that are high $700s, low $800s and be prepared to bid up. That's why I'm here. With mortgage rates the way they are, we need to know how far we can stretch. But those lower $700s/$800s homes also sometimes appear to need some updates.

Even then, I'm nervous we may lose out in a bidding war because we can't do a full cash payment.

I'm not put off by a 50 year old house that's reasonably updated for major stuff (roof, electric, heating/air, etc.), but has older style kitchen, finishes, paint, etc. Also we don't need a large house, we've been living in ~1600 sq feet including our basement so 1900-2300 sq feet would be fine for us!

I'm optimistic seeing posts in the real estate forum that people are seeing rates in the 5's now for a 30 year mortgage. We have excellent credit, so hopeful that in 10-ish months, we can get a good rate and we won't be paying a 4k PITI. I just don't know so figuring out a sort of worst case scenario if rates don't drop.

[Anonymous]

Anonymous wrote:OP here.

I've been following the Burke, West Springfield, Fairfax, Annandale (Wakefield HS area) real estate sales.

It seems like to purchase in that area at a max of $900k, we'll need to target houses that are high $700s, low $800s and be prepared to bid up. That's why I'm here. With mortgage rates the way they are, we need to know how far we can stretch. But those lower $700s/$800s homes also sometimes appear to need some updates.

Even then, I'm nervous we may lose out in a bidding war because we can't do a full cash payment.

I'm not put off by a 50 year old house that's reasonably updated for major stuff (roof, electric, heating/air, etc.), but has older style kitchen, finishes, paint, etc. Also we don't need a large house, we've been living in ~1600 sq feet including our basement so 1900-2300 sq feet would be fine for us!

I'm optimistic seeing posts in the real estate forum that people are seeing rates in the 5's now for a 30 year mortgage. We have excellent credit, so hopeful that in 10-ish months, we can get a good rate and we won't be paying a 4k PITI. I just don't know so figuring out a sort of worst case scenario if rates don't drop.

OP you're going to be fine. Your worst-case scenario is doable for you and you are targeting places that seem right for your budget and your lifestyle.

[Anonymous]

Anonymous wrote:Hi OP, we're fairly close to your income level, about same down payment and were looking in Burke/Springfield. I said were looking, because we stopped. It's impossible to find anything without getting into massive bidding wars, escalating, and basically buying a 40-50 year old house on a whim. We are risk adverse and couldn't do it. I have also had to stop working multiple times over my career, and an anticipating having to potentially do that again in the next year, so we are very fiscally conservative.

This listing is an example of how absolutely insane that area is to buy in right now.

This home sold in March 2020 for $715k.

It listed recently for $875k and sold for $960k.

As far as I can tell from the listing, the only update between then and now is a new dishwasher, hot water heater, and some sort of HVAC modification.

https://www.redfin.com/VA/Burke/9721-Stipp-St-22015/home/9766007

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, we have a similar salary, but higher 401(k) and 529 balances and less equity in our current home (we expect about $250K when we sell). We are looking in the $4500-$4700 range. I suspect this means we are looking at very similar homes -- the further out you get, the more house you get for your money. If you're in Virginia, the further south you go, the more house you get for your money. Look in Springfield/Burke/Fairfax Station for good schools in that price range.

+1

You'll be spending 900k minimum.

Oh look, you can do math. Congratulations!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op, where are you commuting to? I see Alexandria for your DH; are you heading to DC?

You noted your salaries and growth trajectories. I presume you are both feds?

I think your $800-$900K budget is good and workable.

What about the Fort Hood area? I see houses in your range there as well.

Sorry OP, I meant the Fort HUNT area of Alexandria. (Silly autocorrect.)

It's impossible to find something nice under $900K there.

[Anonymous]

I think OP needs to look in Springfield.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hi OP, we're fairly close to your income level, about same down payment and were looking in Burke/Springfield. I said were looking, because we stopped. It's impossible to find anything without getting into massive bidding wars, escalating, and basically buying a 40-50 year old house on a whim. We are risk adverse and couldn't do it. I have also had to stop working multiple times over my career, and an anticipating having to potentially do that again in the next year, so we are very fiscally conservative.

This listing is an example of how absolutely insane that area is to buy in right now.

This home sold in March 2020 for $715k.

It listed recently for $875k and sold for $960k.

As far as I can tell from the listing, the only update between then and now is a new dishwasher, hot water heater, and some sort of HVAC modification.

https://www.redfin.com/VA/Burke/9721-Stipp-St-22015/home/9766007

5 bedrooms is the key thing though--those are hard to come by. I don't see the same thing happening all around that area.

[Anonymous]

Anonymous wrote:"You will have to spend in the 900s"


LOOLOLOLO you know there are middle class people that live in the DMV too? Who own houses that DON'T cost nearly a million dollars?

If you want to single family home here, most of them are going to be in the 900s. I saw one that was listed for 949 that went for 1.1 million last month: it wasn’t that nice.

[Anonymous]

Anonymous wrote:I think OP needs to look in Springfield.

Still 800s or 900s for most single family homes. The ones that were in the 600s disappeared 3 years ago and they are now going in the 800s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, we have a similar salary, but higher 401(k) and 529 balances and less equity in our current home (we expect about $250K when we sell). We are looking in the $4500-$4700 range. I suspect this means we are looking at very similar homes -- the further out you get, the more house you get for your money. If you're in Virginia, the further south you go, the more house you get for your money. Look in Springfield/Burke/Fairfax Station for good schools in that price range.

+1

You'll be spending 900k minimum.

I don't think so--looking at single family houses sold in the last 90 days in Burke and Kings Park West there are loads of houses sold in the 700-900k range. Same when you enter last 2 weeks.

If you can’t even get one of those because there are about 8 to 10 offers on each house right now

[Anonymous]

Anonymous wrote:OP here.

I've been following the Burke, West Springfield, Fairfax, Annandale (Wakefield HS area) real estate sales.

It seems like to purchase in that area at a max of $900k, we'll need to target houses that are high $700s, low $800s and be prepared to bid up. That's why I'm here. With mortgage rates the way they are, we need to know how far we can stretch. But those lower $700s/$800s homes also sometimes appear to need some updates.

Even then, I'm nervous we may lose out in a bidding war because we can't do a full cash payment.

I'm not put off by a 50 year old house that's reasonably updated for major stuff (roof, electric, heating/air, etc.), but has older style kitchen, finishes, paint, etc. Also we don't need a large house, we've been living in ~1600 sq feet including our basement so 1900-2300 sq feet would be fine for us!

I'm optimistic seeing posts in the real estate forum that people are seeing rates in the 5's now for a 30 year mortgage. We have excellent credit, so hopeful that in 10-ish months, we can get a good rate and we won't be paying a 4k PITI. I just don't know so figuring out a sort of worst case scenario if rates don't drop.

You’ll find something. This is the very peak time for buying. You’re competing with all the military family buyers right now. Spring is the worst. There will be less competition after Memorial Day.

In you’re shoes I’d be patient and flexible. Consider being open about moving your kids after the school year starts. The pressure is on now for families to get in and settled before the school year starts. Keep looking through the summer in your target area.

Do you have a good realtor? You do need someone top-notch here to help win a bidding war.