Home Buying in 23455>Question Details

Jeff, Other/Just Looking in Virginia Beach, VA

Prices in Virginia Beach are starting to drop like a rock!

Asked by Jeff, Virginia Beach, VA Mon Feb 16, 2009

Even though Im a buyer, it's a little disturbing to see the effects on neighbors who bought in the peak and are in a bit of trouble. A house I was looking at:

http://www.zillow.com/homedetails/4433-Blackbeard-Rd-Virgini…

just sold for $228,000! Thats $400K off the 2005 sale price. I saw a for sale sign yesterday that proclaimed "Reduced 100K".

It's going to be a very tough year for sellers in VA Beach.

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Answers

41
Yes Jeff,
I'm not sure why a lot of the agents on this site thought the Hampton Roads area was immune to this down turn. I know real estate is local, but I believe that if it doubled during the "boom" it's got to come down. Stay within historical guidelines like not spending more than 3X your income, in a good school district that fits your family's needs and you'll be fine. Also, remember that a typical return in a healthy real estate market is 4% a year. So what I've done to "gauge" my interest on a home is to find out what it was worth at a healthy point in history, let's say 1998 or even 2002, and then add 4% a year for appreciation. This is what the home should be listed for. If you'll do this you'll find that almost any desirable area around here is still 30% to 40% over priced. You'll also notice that rent in these areas aren't that far off of these historical "norms". Why buy a home with a $2500 mortgage when you can rent it for $1400?
3 votes Thank Flag Link Tue Feb 17, 2009
Relevant info I've heard lately: The Norfolk RHDA recently sponsored a "how-to-buy-foreclosures" thing hosted by a local realtor who deals only with REO's. I saw this seminar on TV, & the realtor said that according to inhouse research she'd seen from her lenders, by 2010, almost 50% of properties in HRoads will be bank owned.

If true (bear in mind, she was citing internal lender research from the banks she is handling REO's for) this is a chilling statistic.

I beleieve local HRoads prices will fall dramatically-- another 20 to 30% over the next 2 years. And so they should-- according to US Census data, the HRoads area experienced the 3rd highest price jumps in the entire nation over the past 5 years. Only Honolulu and Miami had bigger overall price increases, & they were both considered "Glam" cities-- not like pokey old HRoads.

And to realtor Doug: when you speak about sellers forced to 'price under the market' to compete with REO's, etc-- you are making it sound as if "market value" is some magic number that exists independently up there in the sky somewhere-- unrelated to, other than, and different from, the actual latest close comparable number. LOL.

In an area where 3/2's sold for 210 last summer, yet the latest valid comp in that area for a 3 BR 2 Bath is $185,000, then, hey!- $185K IS the new FMV---- (whether its a REO, FSBO, or whatever it is.) It is NOT an "under the market" price.

It IS the "market price".

Like it or not, there are not 2 sets of "market prices"-- the actual market price reflected in the sales records, and another magical one that exists only in realtors heads.
2 votes Thank Flag Link Mon May 25, 2009
I don't know too many people that have a problem with true values on property. Part of value is what a person is willing to pay for something. The appraisers do a lot of hard work. For the most part, the ones that I have come in contact with have been very honorable people. They will listen to opinions and review submitted documentation but the value they put on a property is based on the criteria and opinion that they have deduced though a lot of research. It's not a science. I guess there are less than stellar examples of people in all fields of business. We've all bee lied to and taken advantage of at some point but it would be unfair to take those examples and say 'oh, Joe, he lied to me and he was a electrician so all electricians are scum'..

So, what about those VA Bch prices??
1 vote Thank Flag Link Wed May 6, 2009
The median price change in VA Bch from March 2008 to March 2009 is -6%. Not quite a 'free fall' but definately enough to hurt sellers that have to sell now. Of course, the 'median' price can change by a % or 2 depending on whether extreme low and high sales are 'tossed' .
1 vote Thank Flag Link Tue Apr 21, 2009
The Virginian Pilot provides one month of dubious sales data. That's some good research by a realtor.

What is the increase over March 2008? What are the February 2008 numbers?

Only long term data and looking at historical trends will provide any meaningful information. And even then we have to know we are in uncharted financial territory.

This CNN article uses historical data and trends:

http://money.cnn.com/magazines/moneymag/moneymag_realestate/…
1 vote Thank Flag Link Tue Apr 21, 2009
Like I said back in February, we are just about to head into freefall in the area.

No rational person could have thought the prices could remain at the unrealistic levels the have been.

And yes, there are some areas that are more stable and will only see modest declines, but the areas that are getting hit...freefall...........
1 vote Thank Flag Link Tue Mar 31, 2009
Douglas Ford:

Your posts are so full of mis-information and opinion, I don't even know where to start. On your very first post you stated a renter can't rent a $400K house for $1,400 per month. Sorry, you are incorrect, although these correctly priced rentals are obviously in short supply. While there is a wide range of price-to-rent ratios (PRR) in VB, one thing is certain, the VB PRR also experienced a bubble and rental properties that are overvalued are taking a beating in 2009 which will increase in 2010 and 2011.

To construct the local price-rent ratio use the OFHEO’s existing home sales index and the owner’s equivalent rent index published by the BLS. This makes it all too clear that there is some trouble coming on the rental market.

Lori:

You asked where I got the home sale data from? From the VB database of course. If you don't know where that is, you can just look at the vbgov website like everyone else does until it's updated.

These people call themselves realtors?
1 vote Thank Flag Link Mon Feb 23, 2009
Doug,
The last Ichecked the military has been here for hundreds of years, since the Revolutionary War. How can the military be our saving grace in an overheated market yet managed to to maintain an "undervalued market" for 300 years (this per your first response)?
1 vote Thank Flag Link Fri Feb 20, 2009
If you think prices are low now and 2009 is going to be tough. Just wait until you see 2010. You will be able to buy 2 for the price of 1! Happy renting!
1 vote Thank Flag Link Fri Feb 20, 2009
I agree with you Jeff. I just saw a condo at the beach that sold for 244k, listed for 290k and not only that but there are about 10 more listed at 350k+. And now one of those that was listed well above 300k just dropped down under 300k. Looks like things are finally starting to come down.
1 vote Thank Flag Link Mon Feb 16, 2009
Some sellers may need to sell for various reasons. However, as a buyer, current home prices provide more choices. When spring rolls around, you may see a change in home values.
0 votes Thank Flag Link Thu Jan 30, 2014
Veni, I've been in the business since '01 and done plenty of deals. I've come across good and bad but mostly good who really were not influenced too much by the 'deal'. the problem with the new guidelines is that now a third party has entered the picture and more money to divvy out. I'm not saying that an appraiser should be hand picked but being picked from a list not gauranteeing that the appraiser even has ever worked in that area is not going to help establish any real price points. When you have to tell the appraiser that the house is actually in Yorktown vs Newport News or give them directions to the house due to the fact that they have been hired from someone in California and live an hour and 1/2 away - it can be frustrating. We have appraisals coming in that have comparibles from two different towns. Calling around trying to find a professional appraiser to do the work for the cheapest prices does not ensure quality work. I never take the work that an appraiser does for granted - even if I don't always agree with them. It's hard work and for those appraisers that only work in the areas that they are experts in - I have nothing but the highest regard. Also, there is a big difference between hiring an appraisal for his opinion prior to the sale and the actual appraisal that is performed at the time of contract. Just like a refi appraisal, there are different purposes and the information they supply us is important at that time but is no gaurantee of value at time of sale.

In my opinion, people attending ODU for a few years and leaving are not the right candidates for home purchases at this time. On the other hand, I've been looking my self at some places in Norfolk since I have to pay for my kids room anyway - thinking it may be better to pick something up and rent it out for the next 4 years or so but don't know if it's worth the hassle -
0 votes Thank Flag Link Wed May 6, 2009
Jeff, I'm talking about people who are finishing their education here in our area and people moving here who about to start their educational process here in the area. More Norfolk than VB.
0 votes Thank Flag Link Wed May 6, 2009
Each area of York County is different so I'll pull by school district. If I take Tabb, for instance and take the last 30 closed sales the average market time for these homes is 68 days with a 97% list to sales price (ave $312 list and $305 closed sales price). For Grafton it's a $289 list price to $275 sales price and a 65 day average market time. York is $259 list to $250 closed but a 94 day market time. I haven't removed any other criteria besides going back a few months and sorting by high school and only closed sales and removing new construction. There are dozens of new construction homes that are currently pending so when those start to close, the numbers may change. It's hard to use new construction with figures since some are put in the mls at the time of the site opening and some are added at point of sale. There is a lot of active inventory and if I wait a month and pull the same basic criteria district by district, the numbers could very well change. We recently had one of our homes here appraised and it was within 1% of what I thought it would be. Some neighborhoods are a little heavy with listings (mainly townhome/condo communities) so I suspect that sellers will either have to wait their turn for a sale or reduce the price a bit to make things move quicker. If I take a whole neighborhood, say Coventry since it's centrally located between Tabb and Grafton and pull a market view for a year, the average market time is 53 days and list to sales price is 98%. There are one or two pocket areas that got hit a little harder (condos in Yorkshire Downs). True, our prices here skyrocketed but it was and still is a pretty good market. I think that York County over all is down about 4% for the year so new construction closures do affect the whole. You're dealing with such big numbers that get in the mix. I think that NN is down around 7% as a whole which falls in line with my last sale there. Curious about Va Bch numbers.
0 votes Thank Flag Link Wed May 6, 2009
Lori:

What's you current take on market conditions in Yorktown?

Jeff
0 votes Thank Flag Link Wed May 6, 2009
Veni:

Appraisers are still pulling a few tricks as of about two weeks ago. He did it on my neighbors re-fi. Im guessing it was justifiable by some of the guidelines appraisers follow, but there is no doubt is was a stretch.

Also, schools out? I have to quit dropping off the kids every morning.
0 votes Thank Flag Link Wed May 6, 2009
You're absolutely correct there are many appraisers that do a wonderful job and are still in business because of the integrity they bring to the table. However, I'm not sure how long you've been in the business but if you're vetted you cannot tell me that you're naive to fact that they're many appraisers out there that will ask you what price you want them to come in at. You will see a shift in home prices because appraisers working for banks have almost ALL of the bases covered now- strict appraisal guidelines for FHA, VA, and now conventional loans. You may not see this now, but we'll catch up six - eighteen months from now and you can talk to me then about the effect of accurate home appraisals on an overly inflated market. BTW- I hope the above appraiser is not forced out by a new inexperienced appraiser that will work for half the money, but that's another discussion.
0 votes Thank Flag Link Wed May 6, 2009
Obviously, the appraisers/ banks affected by this are probably the same individuals who helped create the artificial bubble to begin with. But it does, become an issue with the agents when the appraiser's home value is 280,000 and the contract price is 309,000 down from the 329,000 asking price. The deal is trashed because the buyers have already over extended themselves offering at the higher end of the CMA. But I'm not talking about the here and now, I 'm refering to the rippling effect of legitimate appraisers putting a true value on a house.
0 votes Thank Flag Link Wed May 6, 2009
Veni,

The hvcc update effective May 1 is more of an issue between the banks and the appraisers - not agents. If you think that this is something that is well received by appraisers, you may want to do some more research on that.

It's unfortunate that your 'friend' had such a bad experience and there are point of contacts for him to seek resolution.
0 votes Thank Flag Link Wed May 6, 2009
Don't worry, as of May 1st FHA, VA & now conventional appraisers are under a tight microscope. Non-reputable agents balk at appraisals that come in below a contract even tough the CMA supports the appraisal and the exact same properties are used. A seller has nothing to worrying about from the agent’s end- you better believe both the listing and buyers agents will work hard to get the buyer to pay top dollar for your house. Now, that will all change (unless some sucker will pay for more than the house is worth or he or she just has to have the house). Make sure you have substantiated your ASKING price with close comparables; otherwise it will cost your energy, time, and money when the appraiser does his or her job. Buyers out there don't assume that your agent has your interest at heart. Believe me, the moment you let your guards down you might as well put your agent on your checking acct.

Agents like to pretend there's no problem. They want to flood you with the numbers and exaggerations. It is in the truest form a dog and pony show. Don't be fooled by this. Think about what's happening now. Yes, its spring, school’s out, residents are leaving and new interns are looking for a place to stay. Of course the numbers are increasing, it’s a beautiful time of year to get out and look for a house. Then there's the military (OUR BUFFER) in this area and God bless them and what they sacrifice for us. Did you know that if they don't sell the house for what they bought, the government uses our tax dollars to pay them the difference. One example- an agent used this to sell service person X at maximum value and then turned around and bought it at a loss to again turn around to sell it at maximum dollar. The whole time my friend thought the agent was doing him a favor because everything was short notice. His jackal agent was there to again profit on a person’s circumstance. It makes me sick to see this and then agents act like there no problem. A maximum effort by vetted appraisers doing their job and NOT COMING IN AT THE PRICE YOU WANT will take the greedy agents out of the equation. This is why as a buyer you do not use ANYONE your agent will try to push onto you except maybe the home insurance rep. The agent recommended inspector, attorney, mortgage rep, etc. are on the same boat as your agent to churn out the deal as fast as possible before the buyer realizes what's happening.

Agents will talk allot of trash and then you are supposed to give up 6% for this garbage? If they were not as good trash talkers they would be selling cars, think about it. There needs to be legislation to modify how agents are paid b/c a commission based on a sales price is in no ones better interest other than the agent’s. Yes, agents, I know all of the HAs involved with listing, showing properties, negotiating a contract, setting up and tying loose ends, and of course bringing it all together to closing. Buyers and sellers beware and educate yourself. Ask lots of questions, if you're going to pay so much money think of it as you're paying for a personal tutor in Real estate and an excellent agent will welcome that.
0 votes Thank Flag Link Wed May 6, 2009
Zillows 'estimates' are about 50 - 70K off from what homes are actually sellling for in my neighborhoods. They have every school district wrong and are mixing Yorktown comps with Hampton.
0 votes Thank Flag Link Tue Apr 21, 2009
New data published today by the Virginian Pilot does not look like a free fall of home prices to me. Check out the great news for Housing in today's Virginian Pilot. The spring home selling season is off to a strong start. To quote the Virginian-Pilot, "In South Hampton Roads, 799 existing homes sold last month, up 38% from February. The median sales price in March was $214,000, up 7 percent from $200,000 in February. For all of the skeptics out there these statistics shows that things are certainly beginning to turn around.

Nelene Gibbs, Realtor, e-Pro
William E. Wood & Assoc.
mail to: nelene@homesbynelene.com
Web Reference: http://www.nelenegibbs.com
0 votes Thank Flag Link Tue Apr 21, 2009
Prices will keep going down in VABeach and everywhere else. Just watch.
0 votes Thank Flag Link Thu Feb 26, 2009
I don't know who's clever enough to keep it off the records. I actually called the vabch office personally and verified that the last legal transfer. I would be highly suprised if there was some conspiracy going on where people at the assessors office were personally keeping sales off the books to inflate prices. I'd be curious where that info came from. I don't believe it. On the other hand, I do see real estate transfers where the price seems way off. It usually is due to a familial related transfer of property.
0 votes Thank Flag Link Thu Feb 26, 2009
Lori:

I just heard something a little disconcerting, it's seems a lot of the regressive price sales like the one above, along with a few hundred more, are being aged and kept off the public radar. Im guessing this has something to do with the current tax assessment process.

I bet there is some serious trouble brewing at the VB assessors office.

On the rental question, I guess the question is property purchase date vs.assessment date vs. rental inception date, and reasonable rent escalation or even reductions. So people who bought rental properties pre-bubble vs. top of bubble are in vastly different situations. A bubble buyer for a rental is going to be in trouble.
0 votes Thank Flag Link Thu Feb 26, 2009
Doug is a real estate genius. He should do this for a living. Great advice and cogent insight.

I am sure prices have gone up in his area. Yeah right. Please.

Where can I rent one of these $400k homes for $1,400?
0 votes Thank Flag Link Tue Feb 24, 2009
Eager,

I think you can read back on some of our posts and see that we have actually told people that it is sometimes better to rent. If I had a home valued at $400 and I could only rent it for $1400, I would not be happy about it but hopefully, i would have a low enough mortgage to deal with it. In my personal experience, my property that is valued in the low 200's currently rents for $1300. One valued at $400 would rent for approx. $2000 - $2500, depending on a few factors. I am sure it is different in other areas..some may be valued at 4 and rent for 14, I just don't see it anywhere around where I live.
I'm still confused about quoted sales price on Blackbeard!!
0 votes Thank Flag Link Tue Feb 24, 2009
Hi Jeff,
We both agree with that Lori is right about home Inspections? She put it beautifully, but I want to address your statement about rental prices. I like you Jeff and I want to help you so:
$400,000 x 6% (interest rate) = $2400/ month (principal and interest) correct?
Then add another say $3838 / 12months = $319 for taxes. I used Listing# 0906039 from REIN as of today for that number.
No, my insurance is about $100 / month, but my house isn’t $400k, only $350k, so we will go with the lower number to be safe. I have Farmer’s, call for a quote.
2400 + 319 + 100 = 2819 correct?
This is a close estimate of a monthly payment for a $400,000 home, but I’m probably on the low side. I can do exact numbers too, but this is much faster and can be done in your head.
So, we know that landlords are all about making money right? Unless a landlord needs to lose $1400/ month for some reason I don’t see them renting a $400,000 home in any city or state for $1400.
To be fair you said a monthly payment of $2400. At 6% interest that works out to roughly:
$2400- 400(taxes and insurance) = $2000 / 6 % = $333,000 for a home.
So, I have an idea. Let’s look on Zillow.com for $330k-$350k homes and email each of those people who have their email address in there and ask to rent their homes for $1400/ month. Say something like you were wondering if they would consider renting for $1400/ month with a 2 month deposit up front. Also that you will do a credit check and employment verification and fill out their application, but you need to know by tomorrow.
I will email 3 people and you email 3 people and let’s see if anyone responds. I’ll post any response I get in the next 2 days and you do the same, Jeff.
Think of it as a way to test your theory. I’m very curious because we have a rental department in my office and I can probably find many people to rent those homes. In fact I’ll do all by myself if you don’t want to. I’ll post any responses here and you can verify. Well, everyone can check, but please don’t flood anyone’s inbox. A rental that valuable is too good to make angry.
Also, did anyone see today’s headlines in the Virginian Pilot? 4% drop for the first time in decades? Ron Vilanueva says people who live on the water have maintained their value. It says 75% of homes will drop an average of 4% and 8% of homes stay the same. Where else in the country are they saying that? I will tell you, nowhere. We live in a major metropolitan area and our property values are basically stable according to this article. Hmm, does that support my opinion that we have a buffer here of some sort? I think it does.
0 votes Thank Flag Link Tue Feb 24, 2009
Jeff,

Lighten up. Are you sure you're talking about 4433 Blackbeard?
0 votes Thank Flag Link Mon Feb 23, 2009
No problem. Who knows, maybe they will start mandating VA inspections. I hope not only because I think the buyer should order, pay and have all rights to the inspection information. My worry is with my buyer/clients who think that they are covered on all angles because they are going through VA and fail practice proper due diligence.

I'm still confused about the price quotes that were quoted for the house sales. I think he may be talking about the condos there, not the house on Blackbeard. I think Zillow had my house as an apartment complex one time.
0 votes Thank Flag Link Mon Feb 23, 2009
Lori,
I will apologize. I believe I was the one thst confused the VA inspection with an appraisal. They are not the same, it was a "slip".
0 votes Thank Flag Link Mon Feb 23, 2009
Douglas, I wasn't referring to your post about VA inspections. I didn't see it.. I was referring to the comment below you about and 'in depth VA inspection' . There is no such thing and that is a huge misunderstanding with VA eligible buyers. I've sat in on the home buyer seminars given on bases (I am both former military, and currently a wife of a retired military AF). There is a false sense of security there when the buyer is lead to think that the procedure is so different from using an FHA or Conventional loan. I've had my buyers ask me why they needed to pay the extra $300 for the home inspection since they were told that the VA would do it. I've never seen an appraiser on the roof, in the crawl space or in the attic and I attend all my buyer's home inspections. It is up to the home inspector and the termite/moisture company that the buyer hires (yes, I recommend the buyer hire them most of the time) to give the buyer a picture of what is wrong. The VA appraiser may have some criteria that they list as needed repair that a different appraiser won't but there is no in depth inspection. Also, I've had buyers and listing agents both say that they don't have to worry about the offer made since the VA will step in and give them the value and that way they don't have to worry about overpaying for a house. Fooey. VA appraisals come in high sometimes. Does that mean that the buyer should redo the offer and pay more? Don't take this wrong. I love the protection that the VA provides for a buyer during the process and after. I love the fact that they waive funding fees when appropriate. People need to know that the VA benefit is great and why, but don't assume that they are going to provide the professional services of a home and termite inspector or negotiate the price for you like an agent.
0 votes Thank Flag Link Mon Feb 23, 2009
Hi again,
Yes, I called an appraiser an inspector. My bad, I was just sticking to the terminology used. Guess I should have corrected. Thing is, Lori is right; people have many options in how they dispose of real Estate. I wasn’t really trying to focus on that, but it does have a bearing. My point of view is and was that the military are keeping our area more stable than the rest of the country. Also I would like to limit the scope of my statement because to completely cover every reason would be exhaustive. I simply believe that most military are trained to listen to good advice. Read Dan’s post and he tells us exact what I’m saying. We have a very large ratio of military to civilian citizens. Sure we have a lot of investors and remodelers and small companies trying to make a living thru real estate, just like everywhere else. I checked Realtytrac.com and our numbers according to them are quite low in fact when I put in my zip code it came up 8123. My ZIP Code Foreclosure Rate Ranking down at the bottom of the page in the Trends/Market View section of that web site. So according to them, out of however many zip codes there are in America, my zip is 8123rd. That doesn’t sound too bad. I guess we don’t need to sweat it all that much after all. Also, I read a few articles about how people are looking to this web site for accurate info about trends in Real Estate. Seems that the consensus was that if they tracked info the same way all the time then the numbers was probably pretty close, but not exact. The real problem is that most people don’t know who to trust about the overall foreclosure rates, or where to find truthful numbers.
0 votes Thank Flag Link Sun Feb 22, 2009
Jeff,

Where did you see that sales data? From what I see, the house was placed in a trust. A lot of people do that. Also, on the 'in depth' VA inspection ?? In all of the homes that I have listed and sold (and bought myself), the VA has never done a home inspection or even required that a home inspection be done. The VA sends an appraiser out to the property. The appraiser may point out something (just like an FHA or even conventional deal) that they see that needs done i.e. chipping paint on a home built prior to 1978, and sometimes misc. repairs. You've got your termite/moisture inspection but the guildlines for that are nothing like the OPTIONAL home inspection that a buyer may (and should) choose to perform. I'm not posting to agree or disagree with your sales quote, just would like to know where you've bought that the VA comes out and inspects the house for you. Don't bite my head off for asking, guidelines could be different, just have never seen a VA home inspection done - ever.
0 votes Thank Flag Link Sat Feb 21, 2009
Dan, you misunderstand me. I said that the people like you are the one's helping keep this area from feeling the full impact of what we see in the news. You are a wise buyer who obviously does your homework and takes your time to decide. This blog is about why our market hasn't been clobbered with foreclosures. Yes, VA inspectors are the most difficult to satisfy, which also supports what I think. If your upset about what I said about 4433 BLACKBEARD RD. There is a way you can find that information, city tax records. They update constantly, but are backlogged, and you can search online to see what I'm talking about. But I wasn't really aiming directly at you with my comment. I agree with you partly on the overpriced statement because all the individually owned properties are competing with the Bank-owned REO's right now. That is Skewing the market low because many of those REO's are below market and in order for good people like you to compete you have to drop your price or wait it out. If you have enough equity and you need or have to move, you should be fine. Many people are just waiting it out. People who bought in 2005-2007 with a 2, 3, or 4 ARM are really feeling the pain. Their payments go up significantly when the arm resets to a higher rate. Most of these people did not refinance because all their extra income is now going to their higher payment say $200-500 more per month. They liked the low payment at the beginning and gambled on getting a raise in the future to cover the higher payment. Do you ever recall anyone saying something was wrong with that picture? I can’t say I heard anyone warning us, I remember all the hype, and how the media was playing it up. The banks did not do us any favors. So what do we have to fix? Can our government bail everyone out? I don’t know. Our country is in new territory here.
0 votes Thank Flag Link Fri Feb 20, 2009
"prior to the BOOM, real estate in this area was undervalued"......your words Douglas, not mine. I never said homes were undervalued. My view is that homes now, are OVERVALUED!!! Also, I happen to be military. I don't doubt that the military VA foreclosures aren't the problem. On the contrary. To get a VA loan you must go through an in depth VA inspection and they are not easy. I do like how you guys throw up details about some "privy" information on a single deal to try to make simple "laymen" like myself fell like we're stupid. Now I obviously don't know much about a MARYLIN B MITCHELL and her free giveaway. But I do know that I have bought 2 homes in my days, never spent more than 3X my annual income and have been very happy with every purchase (and used an agent to buy and sell all 4 times and never had a problem to those who think I just hate RE's). I now make twice as much as I did when I purchased and sold yet can't find a single home that meets my family's needs in this environment. What's wrong with this picture? Are prices too high? No, apparently they've just always been "undervalued". That's why the market has brought an entire global economy to it's knees and requires federal help. Yeah, but us cautious buyers are the problem!!!
0 votes Thank Flag Link Fri Feb 20, 2009
Wow talking about sweeping generalizations. You think that Real estate in tidewater has been undervalued for 300 years? Or are you saying I said that? I assure you I did not, I have only lived here 24 years so I can only say what I read in the past about our economy here. True Uncle Sam isn't out to make it's soldiers rich, but he does provide adequately. So aside from the top dogs most military families are advised to live within their means. Sure we see our share of VA repos, but the numbers are probably steady. Prove me wrong. Besides, that house listed above sold for $0 on Dec.20,2007 to MARILYN B MITCHELL REVOCABLE LIVING.
Now that is something to get excited about. He got a $649k home for free WOW!! How can I do that? Hmmm.
LOL, see how not knowing ALL the details of the transaction IS VERY MISLEADING. You guys don't know anything other than what you read on these various web sites. If you were involved , Please tell us exactly what happened there. I'm sure it's not what we expect. Not knowing all the details of each deal makes it hard to say that one specific home is a good indicator of current conditions. If you want to know the true scoop go here: http://www.vahomeownersalliance.com . If they lie you are free to sue. Here's some answers for people at this site; http://realtytimes.com .
0 votes Thank Flag Link Fri Feb 20, 2009
Yes because all of those huge salaries that the military personal get paid will really be able to afford the overpriced homes in our area when regulation is tighter than ever and home buyers are required to put 20% down unlike how it was when home prices were soaring.
0 votes Thank Flag Link Fri Feb 20, 2009
We are not immune. We have a buffer though, our local military is saving us by their constant comings and goings.
0 votes Thank Flag Link Fri Feb 20, 2009
Great post Doug,
You explained why the prices "shot up" like a lot of the country did, but you didn't explain why it's immune from the "correction" the rest of the country has seen.
0 votes Thank Flag Link Fri Feb 20, 2009
Sorry, but you can't rent a $400k home for $1400. Also, prior to the BOOM, real estate in this area was undervalued and many builders got fixer-uppers for almost nothing. There was a ton of redevelopment money being poured into the area and anyone who could swing a hammer made a good profit. The stock market had just had a serious "correction" and people were looking for the next good thing. This addition of buyers, all jumping in the market with allot of money to spend, helped push prices up. Then, it got nuts, bidding up prices using escalation clauses and multiple offer responses set up an auction mentality. All the while people were hearing how their friends made $100k in under a year. Boy, were they lucky, but they didn't plan it. They were just buying and selling at the right time. Not to mention no-doc loans, remember those? You know, where if you breathed, the loan was yours. So it really was the perfect set-up for a boom-bust real estate situation. Funny thing though, people who were not trying to make a killing, people who used their heads and didn’t buy beyond their means, all seem to be ok. People who actually listen to Realtors when they advise them not to get beyond the debt-to-income ratio set by mortgage advisers are very happy today. Unless they lost their job or something related to this bailout/fallout, most of them are doing well. You see realtors are here for your protection, not to take advantage of you. We obey all the laws and train constantly; so that we can help families just like ours enjoy the “American Dream”. Sure there are some undereducated agents out there, but if they are a REALTOR, they won’t be for long. We, as Realtor’s, are not mortgage experts, and so we have to rely on them and their word just like everyone else. If a mortgage officer says you can afford such and such, then we believe them. Here is my question for you or anyone. How many people bought and sold with the advice of a Realtor that they would make a killing in one (1) year, but now face foreclosure?
0 votes Thank Flag Link Thu Feb 19, 2009
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