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Mel, Both Buyer and Seller in Winchester, VA

I have a house in Winchester and I am looking to upgrade in Winchester. Is this something I should do now or?

Asked by Mel, Winchester, VA Wed Feb 13, 2008

I have a house in Winchester, 5 houses away from a great elementry school. I am looking to sell. Should I move out of Winchester. I am not sure if I should move out of Winchester,or buy another house in Winchester were winchester is a great market value

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14
Winchester Cathedral you let me down you stood there and watched my girl left town. Maybe you should consider the odds and move on. I would . Lets toss a coin and call the realtor.
0 votes Thank Flag Link Mon Jun 6, 2011
Not sure what people are basing it on, but Winchester has a fairly open and transparent government. Very little corruption at all. As with all towns, there are big budget projects that will need to be tackled moving forward. However, most towns in New England are in similar situations with aging infrastructure. Not sure what "hit" one commenter referred to on the farm, but I think s/he is off base. Farm is sold, and money is coming in from the sale.

As far as whether you should move, consider all the transactions costs and whether you could an an extension to your existing house for the same or less. Just worth a thought.
0 votes Thank Flag Link Wed May 19, 2010
Mel:

The only way that I would suggest a move in this market would be if you were looking to move to your destination home. You are not going to get as much for your home, and depending on how long you have been there you could lose money. However, if you are moving up to another price point then they will be losing more money. Look at it this way. If the whole market has come down 7%, your $300 K home is down $21,000 and the $500K home you want to buy is down $35,000. Your making $14,000 right off the bat, but you to stay in this home long term so you can turn that $14,000 into $48,000 and have a great home to raise your family. Best
0 votes Thank Flag Link Fri Mar 5, 2010
Looks like at least half the people attempting to address this question did not bother to notice that "Mel" is referring to Winchester, VIRGINIA
0 votes Thank Flag Link Tue Mar 2, 2010
I agree with the previous poster about Winchester being a corrupt town.

The town is in trouble financially. Residents have two major projects which need to be undertaken over the next few years: a complete rebuilding of the Vincent-Owen school with a size increase, and a major overhaul of the high school including a size increase. With the huge financial hit the town took with the Farm and the lack of tax revenue from it, Winchester is in a financial hole.

The NAR is fighting hard to hold back the tide. Interest and mortgages rates are going up and not just a little bit. Currently the Fed, various government agencies (Fannie, Freddie, FHA), etc are purchasing or insuring (via TALF) over 90% of the mortgages originated. Normally this is below 15%. My personal estimates is that if the Fed stops supporting the mortgage market at the end of March, mortgage rates will approach the 7% level by the end of the summer.

What is only being discussed behind closed doors is the problem with the government's debt for 2010. Per Obama's budget that was just submitted, they're looking at $1.7T in new debt. With some of the rosy projections in the budget, this will easily move to $2T. But that's not the big worry.

China spent much of 2009 rolling its long term US Treasuries into short term as did others. In addition to the "$1.7T" in new debt which has to be raised, 40% of the already existing debt needs to be refinanced or "rolled over" this year. That's ~$3T of additional debt refinancing or close to $5T overall.

Last year new debt issuance was about $1.7T of which about $300B went to the traditional international sources. The remaining $1.4T was purchased by the Fed by printing up new dollars and diluting the supply and also in exchange for the MBS's (Mortgage Backed Securities) which the Fed was purchasing. The Fed bought the MBS's from the banks for top dollar and the banks bought Treasuries with the proceeds of the sales, thereby putting them, theoretically, in more financially sound positions and set up to be less exposed to the next leg down in housing which is coming.

You can't fund ~$5T in new deficit spending by just monetizing all this due debt; the dollar will be crushed. A large part of this will have to be raised externally which means higher Treasury rates and therefore higher mortgage rates. Much higher.

As rates go up, property values come down; for mortgage payments to remain constant with a higher interest rate, the house purchased has to cost less. Buy houses when mortgage rates are high and look to start coming down; then sell them when they've been low and look to start going up. If you plan on keeping the home, you then refinance with the rates have come down. (You can never renegotiate your home price; you can always refinance.)

Interest rate changes affect higher priced homes more than lower priced homes. If you're considering moving into a larger home, it might behoove you to wait until the fallout from higher mortgage rates have settled.
0 votes Thank Flag Link Mon Feb 1, 2010
Cash out while you can; very corrupt Town. Can do much better in Wakefield or Stoneham unless you are compelled to stay because of schools
0 votes Thank Flag Link Wed Apr 1, 2009
General rule of thumb is you trade up in a down market and trade down in an up market. the idea is that you can use the % change in price to your advantage. For example if you own a 500,000 home and want to buy a 1,000,000 home, if the market is down 10% the difference between your home and the more expensive one has shrunk from 500,000 to 450,000. If the market is up 10% the difference has increased to 550,000 a swing of 100.000.
0 votes Thank Flag Link Sun Mar 16, 2008
Hi Mel,
I have worked in Winchester in RE for 14 years and live here as well. I don't necessarily think that living 5 houses away from one of the 5 elementary schools is such a positive thing. Buyers will complain that the house is too close and the noise during recess (warmer weather) is too disturbing. Also, depending on which elementary school you live near, parking could be a problem with teachers parking on the street, perhaps in front of your house. That being said, I would say move away from the school. I think the only way to advise you on whether to sell, is to look at your house. How long ago did you buy it? How much have you put into it? These are key factors. The real estate market in Winchester is down but there are still buyers out there. If you are in the Lincoln or Ambrose district, that is still the most desirable place where people are looking and you might sell your house right away, depending on your pricing. Pricing is everything in today's market.
Laurie Fallon
REMAX Leading Edge 748 Main Street Winchester
781-729-5505
Web Reference: http://www.lauriefallon.com
0 votes Thank Flag Link Sun Mar 16, 2008
Not sure what state you are in but I think a general statement is appropriate here: If your happy where you are stay there why move?, but if you wnat to move for any reason now is a great time to do so. A good Realtor should be able to use the strengths of your home and area to sell your home, you will likely have to be realistice about price due to the market. But keep this in mind, the house you may consider buying will have to be also. So all in all it could be a net wash or gain as you can make up on the buy side and lower sales price on the sales price.
0 votes Thank Flag Link Tue Feb 26, 2008
Stay put in Winchester in this market. Right now Winchester is doing great in terms of Real Estate Market. If you are emtnioning about Muraco school. That's the best elementary school. So if you are selling your current house. Buy another house in Winchester.

Good Luck!
0 votes Thank Flag Link Sat Feb 23, 2008
Hi Mel,

Since you already live in Winchester I don't need to give you the sales pitch! But if you are considering other communities, I would just caution you to stick with comparable communities. You can upgrade, yet get more for your money if you are not tied to the Boston commute that Winchester offers. Which communities have you considered?

The market in the Western suburb communities is steady, although it is tipping to the buyers market side of things. What this means to a seller moving up is that if you prepare your home for sale and price it correctly, you should be able to to do well upgrading. This is a market for first time buyers, investors and sellers moving up. Down-sizing should stay on hold unless a person is leaving the area entirely.

Hope this helps you - let me know if I can be of any further help.

Julie Duncan
RE/MAX Landmark
0 votes Thank Flag Link Wed Feb 13, 2008
If you are going to move to bigger home, it is great time because for the same %, bigger home may have more saving than the saving you passed to your buyer. So, move up is the right time.

On the other hand, if you plan to downsize, people normally do it at the market peak when same % up on real estate, bigger home make more money dollar wise.

Ideally, you would buy a bigger home now for some good saving, and rent out your smaller one since the rental market is great.

e.g. back in 90's when market was at the lowest to come back up like now, I move to the bigger home I could afford, yet catch the 3.875% ARM and rent out my condo and use the rent to pay mortgate of the bigger house. This is important concept since if one only own ONE house, when market jump again, you still do not benefit too much since you have to live at your only home. Whereas if you have more than one, when market jump again, you can cash in the other one.
0 votes Thank Flag Link Wed Feb 13, 2008
Are you looking to downsize from you current home? Winchester is a great town. There are not many drawbacks to living in Winchester either. The tax rate may be a concern to someone who doesn't live in the town now. (It's probably one of the highest tax rates in the area). First time home buyers don't usually look in Winchester for that reason. You should first decide where you want to move to, how much your current house would sell for and what your time frame is. If you have any additional questions for me, please contact me at my personal website. Hope to hear from you soon!
Web Reference: http://www.ezhomeseeker.com
0 votes Thank Flag Link Wed Feb 13, 2008
Where you live has only to do with your lifestyle and your ability to afford - market timing should not have anything to do with where you live. If you want to upgrade in Winchester the only financial considerations are- how long are you going to be in your next place and do you have enough equity to move - rates are outrageously good so if you have equity and you WANT to move its not a bad time to do so. The lower price that you will get on your home will be reflected in your buy as well
Web Reference: http://www.provestre.com
0 votes Thank Flag Link Wed Feb 13, 2008
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