As any wise investor will tell you - the key to getting a good deal with maximum opportunity for appreciation is on the *buy* side. Make sure you and your agent do your due diligence and negotiate assertively, and try your best (though it's hard) to not get emotionally attached to a property while in negotiations.
All my best!
Lisa Moroniak | REALTORÂ® | Service360Â°
Keller Williams Realty
Licensed in VA
When I say relative value, what i mean is if the entire market was to take a hit, then so does just about everything.
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Lender guidelines have changed significantly. If you are buying an investment property you will may require a larger down payment and have higher interest rate. Calculate your rental income to cost of owning the property. If you have another home how comfortable you are with two mortgages. Also being an older home the cost of repairs and updates also should be considered.
If you are considering as a primary residence than you should take into consideration your life style, if the size of the home meets your growing family needs or future plans. Along with that the cost of updates/repairs in the home that may need to keep up.
There are many reasons to think that prices will appreciate within walking distance of an upcoming metro stop. For one thing, we seem to be at the bottom of the market, so prices are expected to start appreciating slowly simply for that reason in the DC metro area. Secondly, looking at other areas within walking distance to metro in the DC suburbs, we do see higher prices than similar homes not near a metro.
But don't forget to consider all the other factors one would normally consider when purchasing a home. Don makes some excellent points. Also, some neighborhoods will appreciate nicely even though they are not within walking distance to a metro, simply because people want to live there. For example, this can sometimes happen if the elementary school is rated really highly.
You didn't mention if this was an investment property or a home for yourself to live in. Different factors are important to consider depending on the answer to that question. Please don't hesitate to contact me if you would like to discuss any of these things in more detail.
Some of the increased appreciation is already reflected in the prices. It's not that the day Metro opens the station on Wiehle, everyone will wake up and say: "Oh, wow. A new Metro stop close by! Now my property's worth 20% more!" Properties close to there have been marketed as "Metro coming soon" for years.
Having said that, when Metro does open, it will help home values in the immediate area. I bought a home closer in before a Metro station was completed. Prices had already been going up in anticipation of the stop. But once it opened, it gave prices an additional boost. I'd expect the same thing to happen there.
Still, there's more to location than a nearby Metro stop. A few years ago, I was marketing a property not far from where you're talking about--in Shadowood. It's already close to major roads, schools, etc. But people consider the entire community and the community's history. I found that the condo's price was depressed because of the past history of the complex.
But the most important piece of advice is: Buy because you want to live there. Make sure you like the townhouse, and make sure you like the location. Don't try to be a real estate speculator. It's too risky in this market. At best, assume very modest price appreciation on the property you buy. And make sure you get a good value on it--don't overpay just because someone tells you, "Oh, don't worry. Once the Metro opens, prices will skyrocket." So: Good value going in on a property you like in a location you like.
Hope that helps.
I'm seeing a fair number of people doing what you're doing for exactly the same reason. I agree that homes near the metro stop will do well once the metro service to Reston is operating. That does mean that every property in Reston will do as well. Homes within walking distance to the metro stop will benefit the most.
Prices here have stablized, and with interest rates still low (alhough not as low as they were 2 months ago) this is the ideal time to be buying. Interest rates will increase further as the economy continues to show signs of recovery, so I would expect higher rates before the end of 2011.
If you would like some assistance, my office is on Sunset Hills, so I have a pretty good handle on the local market. Let me know, and we can meet to talk about your goals.
Andy Krumholz, ABR, GRI, CDPE
Keller Williams Realty
Hope his helps
I remember buying in Ashburn when the Greenway was expected. It's the same thing (only a little better).
I want to reinforce the point of the earlier poster who said to buy for YOU for the next 7 years or so. It takes that long to see appreciation you can cash in as a deposit on your next home. Gone are the days of buy and flip in a year or two....I mean, it is POSSIBLE, but please don't bet the bank on it.
I very much enjoy working in the Reston area. If I can help you please reach out to me... 703-669-3142 firstname.lastname@example.org