Home Buying in Weston>Question Details

Regina, Both Buyer and Seller in 06883

Should we or shouldn't we buy this home?

Asked by Regina, 06883 Fri Dec 14, 2007

The house is wonderful, it's been on the market 9 mth, company owned, good condition great location, 4800 sq. ft., finished lower level not in sq. ft. w/bath, sep. entrance in Weston, CT. Started at 1.3mill. now $920K. We believe we could get it for a much better price. It sounds great..but the taxes are $20,000.yr.
I'm thinking the house hasn't sold because of the market as well as the high taxes. It's still about $80K over our budget and if we can get it for low $800K, rent the lower level does it make sense to buy a home with such high taxes? I wonder if we could ever sell it again? I'm so confused any suggestions?

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Don't get unnecessarily hung up on the taxes. It's easy enough (you, a real estate agent, etc.) to figure out what the tax basis of the property is, and why it's taxed at that rate. A more important question is: What's the property worth? And that doesn't necessary mean that because it started at $1.3 million and now is at $920,000, that that's a good deal. You need to know the comps. And in today's market--which is declining--you should buy it for less than the comps indicate. If the comps say it's worth $900,000, who knows what it'll be worth in 6 months or a year. So...determine its true value today. Then figure out what you could really afford. It's OK to rent out the lower level to help ends meet. That's how I bought my first house. Just make sure you know what the rents are in the area for what you're planning to rent out.

Yes, you could sell it again...if you price it right. And that means buying it at the right price. Look, you know that if you owned the property and put it on the market at $500,000, it'd sell. If you put it on at $700,000 today, from what you're saying, it'd probably sell. But we know it's not selling today at $920,000. So the market is saying it's worth less than $920,000 today. And while no one has an operable crystal ball, as noted above, I expect prices to continue to decline for awhile. Now, if you're planning on living there for 15 years, that's one thing. There's time for the market to recover nicely, and time cures a lot of buying mistakes. But if your timeframe is shorter--say 6 years or less--then you've got to be much, much more aggressive in your buying.

Again, I don't know your area at all, nor do I know anything about your finances beyond what you've said above. So I don't have specific advice on price. But your strategy is OK. Just buy at the right price and know what you can afford.
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1 vote Thank Flag Link Fri Dec 14, 2007
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Regina,
One suggestion is to double check the taxes and then see when it's up for re evaluation. I have found that some homes have been incorrectly assessed by the city. Also how are you paying your taxes? You would need to establish the correct market value of the home as well before making any decisions. Also, i would look in to what is the likley hood of getting a tenant for the lower level? If you don't get one how does that impact you monthly? Usually higher taxes means something is desirable in that area may it be beaches, township etc. hope this helps you can contact me if you have any other questions.

Alisha Gunraj
Always Going the Extra Mile!
Kw Associate Partner, Serving Fairfield County
BA Degree,Realtor®,NAR
Phone:203-554-4481
Website:AlishaHomes.com
Email:AlishaSellsHomes@kw.com
1 vote Thank Flag Link Wed Jan 16, 2008
The house sounds wonderful, but you are right , the taxes are very high and I am sure not getting any lower. You may be able to submit an appeal once you own the property since the value of the home has decreased.
It also sounds as though you would really be putting yourself in a tight financial situation. If you have to rent the bottom half of the property to help with the taxes and mortgage you should probably continue looking for another beautiful property with lower taxes and a lower mortgage.
1 vote Thank Flag Link Fri Dec 14, 2007
Presumably you have looked at this home with a real estate agent who should be able to answer these questions for you. I would have to know the exact address to comment in particular ,but a general response would be to first of all find out why the taxes are that high. Does this property have a lot of land? It doesn't really make sense to me and this is one of my markets --unfortunately, if you are represented, I really cannot interfere with that relationship. If you are not exclusively represented, please contact me at randi@huttonrealestate.com.
Thank you.
0 votes Thank Flag Link Fri Dec 14, 2007
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