Market Conditions in Ashburn>Question Details

Rania Ahmed, Home Buyer in Loudoun County, VA

Is building a new homes in Ashburn (approx $900,000) overpriced for this area?

Asked by Rania Ahmed, Loudoun County, VA Tue Sep 18, 2012

Hi - we are considering building new versus resale for 20147 area. The new construction would be approx $900K, 4500 sq ft, 4 bdr/4,5 ba and decent size. Reputable builder. Is this overpriced for Ashburn and would we lose money on this down the road?

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Answers

8
Dan Ritchey’s answer
Rania,
I was a builder for 25 years before becoming a realtor and the answer to your question is that it depends.
Here is a link to homes sold in the 20147 and 20148 zip codes in the last year above $900K. There are 15 of them with an average days on the market of 83 days.
So what does this mean? That homes in that price range sell at a pace of 1.25 homes per month.
You need to mindful of how your proposed home compares to those comps in terms of similar attributes, upgrades, location, amenities, builder quality and reputation etc..
There are many factors that contribute to the sales price.
It is also important that you work with someone who can get you the best deal possible for that particular builder which also involves many factors.
Hope that helps! Give me a call if you would like some help on this.
Thanks,
Dan Ritchey
Keller Williams Realty
Loudoun Gateway (Ashburn)
703-999-0167
0 votes Thank Flag Link Fri Sep 21, 2012
Rania
Yes 900k for ashburn area is overpriced. how much is lot size? builders are building big size homes on smaller lots and when you sell them in resale market its hard to sell. right now interest rates are low, when they jump then it will be very hard to afford 900k home and upper bracket homes are first to suffer.

you should have your broker check the resale homes and gave you CMA . this way you get better picture and will know whether 900k price is justified.

Kamal Singh
703-728-3403
novarealtor@gmail.com
Associate Broker
Jobin Realty
Web Reference: http://www.vamdnewhomes.com
0 votes Thank Flag Link Tue Sep 18, 2012
Lot would be 0.3 acres.
Flag Tue Sep 18, 2012
Hi Rania - in case you've not found your answer below, 900K is high for the Ashburn area, but that is not to say it's overpriced. It's on the higher end of homes in the 20148, 47 zip codes, but it's also on the higher-end of prices throughout Loudoun County. So, if the market is soft whenever you decide to sell, it's typically those higher-priced homes that take the longest to rebound from a soft market.

In terms of you losing money, that's impossible to say. Only to say that as you buy a home in the upper price brackets for Loudoun County, those are going to be the first range of homes to suffer in a housing downturn, and the last to rebound from that same housing downturn.

What you might consider is getting into a comparable home via short sale or bank foreclosure, which could (likely) get you into a comparable home that might be worth $900K for a price closer to $800K or even less. If you're more concerned with values and making a profit than with the concept of new construction, this would be a good strategy to consider. That would help 'insulate' you from a housing downturn as you purchased the property for less than market value.

If I can help in any way, or you would like to talk further about it, feel free to call me.

Best,
Matt Elliott
Keller Williams Realty
703-627-2167
MattE@kw.com
0 votes Thank Flag Link Tue Sep 18, 2012
Thanks Matt. Good info. We turned to building because after seeing over 100 homes, we still couldnt find what suits us. Our 1st home (lived in that for 10 yrs) was also a new construction. We've seen some foreclosures/short sales but at $900,000K it doesnt leave us money to do all the improvements. We were also considering spending the same amount $900-$950K but in Vienna or Oakton. However there, the trade off is much older and smaller. So our toss up is 1) better value in Fairfax vs Loudoun and 2) in Loudoun, resale or build. It seems in Belmont Country Club the houses sell pretty quick and in the $750-$900K range. Maybe the golf course/amenities help in resale? The NV homes area (Stonegate) doesnt offer that. That is my concern for resale.

Rania
Flag Tue Sep 18, 2012
Rania, I am reviewing the answers you are getting. You should not settle for resale. You should do complete homework, which I can help you with and then based on that information you should be able to make a good decision. http://www.jilltacci.com Sincerely, Jill
0 votes Thank Flag Link Tue Sep 18, 2012
Thanks Jill - will email you!
Flag Tue Sep 18, 2012
Rania, reviewing properties online is great, however, I can provide you an even better tool. An Investment Property Report based on the area you are looking at. The report will score properties, comparing to other areas, give you historical appreciation, risk assessment and a cash flow analysis.

Let me know if you need anything further. I am happy to help!
0 votes Thank Flag Link Tue Sep 18, 2012
Hi Rania,

This is Sony Kim, Associate Broker with Keller Williams. Personally, I would look into existing new homes for sale by builders like Toll Brother, etc. rather than build. I am into the process and it is more than I bargained for. Please email me at sony_kim@msn.com to share thoughts and ideas. At the end of the day, it's what you get without the complications and headaches, misunderstandings and miscommunications.

Sony Kim
703 244 3997
Keller WIlliams McLean Va
0 votes Thank Flag Link Tue Sep 18, 2012
Hi Rania,

Below is the list of active single family resales/short sales on the market in the 20147/20148 between $800,000 - 950,000 to help compare your new construction purchase against.

Click the following URL to see the listings:
http://mrislistings.mris.com/DE.asp?ID=48865454138

Feel free to contact me at eric@e4realty.com for further questions or detailed information on new construction community your are considering.

Thanks!
0 votes Thank Flag Link Tue Sep 18, 2012
With the metro rail coming in future, you should be fine. I hope you have an experienced agent representing you. Not all
Builders are the same. Call me if you need help. 25 year veteran in industry with good references. Jill tacci


build
0 votes Thank Flag Link Tue Sep 18, 2012
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