why new builds in mclean lose values over time?
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Anonymous
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i've seen so many new builds in mclean sold for $2-3M then gradually lose their values and re-sold at lower price years later
seems like everyone just prefer newer homes, anyone care to offer some different theories? |
Anonymous
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New homes have no intrinsic character created by good architecture and quality construction.
Lacking this, builders fill new homes with the latest on trend finishes. You By their nature the finishes are dated quickly and fall out of favor fast. After 5-10 years, one is selling a dated box. Buyers prefer the new box with trendy details that will fade fast in favor. |
Anonymous
| Examples? |
Anonymous
like this one https://www.redfin.com/VA/McLean/925-Mackall-Ave-22101/home/9275740 or this one, 13 years and you barely break even after fees to realtors and taxes https://www.redfin.com/VA/McLean/7216-Farm-Meadow-Ct-22101/home/9838684 or this one https://www.redfin.com/VA/McLean/1571-Maddux-Ln-22101/home/21726054 so many examples, just make me question the value of new builds i think its much safer to build a 20-year homes for 1.2M, at least you can re-sell it for 1.2M easily |
Anonymous
Anonymous
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Biggest issue is this area doesn't see a huge influx of wealthy people able to afford 2-3m. Lots of growth in people able to afford 500-1m. So you have high demand and stagnant (even decreasing) stock of cheaper SFH for the latter crowd.
Also, older 2-3m houses compete with new builds/tear downs. Frankly if I had 2m, why wouldn't I build new? None of your examples are the pinnacles of design, quality, or tradition. |
Anonymous
200k gain on a 2m+ home over 10 year horizon is barely break even Realtor fee, tax, closing cost alone is 120k+ on a 2M home Luxury home simply isn't a good investment in mclean |
Anonymous
The list you gave is laughable... seller is losing money in all these homes because the gains don't cover expense Especially 1940 Virginia ave, it resold after 5 years for only $50k profit, not even enough to cover half the seller's cost |
Anonymous
You could make the same observation with respect to newer homes in slightly lower price brackets in North Arlington and Vienna, but people also buy for schools, commutes, neighborhoods, and mortgage deductions. I don't think a new $1.2M house in McLean would be very nice, and if the $1.2M alternative is Pimmit Hills, well, no thanks. |
Anonymous
This. And it's not just McLean. Of course there are new homes built that do have these attributes, but most don't, not at all. |
Anonymous
the benefit of mortgage deduction isn't that big after all |
Anonymous
| People pay a new home premium, not unlike a new car premium. |
Anonymous
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i think HOA is the only way to preserve home value
in areas of california, older homes re-sell for higher values every year because its literally impossible to build new |
Anonymous
california homes are rising in value because demand outweighs supply. We just sold our home in sausalito and had multiple offers. some all cash. it's just a different market out there and you can't compare it to McLean |
Anonymous
| The 3 houses you list are pretty bad examples. These were all built right at the height of the housing boom. |