Market Conditions in 23455>Question Details

Holly, Home Buyer in Alexandria, VA

Why are the properties in Chick's beach so overvalued? Some of the properties are listed at $500/SF and only

Asked by Holly, Alexandria, VA Thu Feb 7, 2008

a handful of properties have sold over the past twelve months.

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There are a lot of houses for sale in there right now. Our sellers are still not very realistic as to the true market value of their home TODAY. There aren't very anxious to sell either. Alot of the homes that have sold in the past year were on the market well over 6 months. My guess, too, is that the sellers are waiting to see what the spring & summer will bring. Chick's and Chesapeake really do better in the warm weather.
1 vote Thank Flag Link Thu Feb 7, 2008
It's called the housing bubble. House prices valued on speculation that they will increase, even though they are way past what home moaners can afford based on salary information. So the prices will revert. In the bubble world, they are called "wishing prices" because the greedy sellers are hanging on to old values. Often times fraud goes down where a home is sold for a high value with an instant cash back to the buyer, then the home is let to go to foreclosure (buyer walks with cash). But in the meantime this high sale price (based on fraud) is recorded and starry eyed people think they can get it. In the end, the greedy will follow the market down. Lowering prices slowly well after the buyers are gone. In the end, it's Hampton Roads which is a pretty boring place, and most of the prices will revert to 2001 or before values. So I wouldn't overpay for something. Use 2001 values.
1 vote Thank Flag Link Wed Mar 5, 2008
Another 4460 Lee Ave followup (just one example of many)

Appears to be moving into foreclosure
01/21/2010 Listing removed * -- -- -- --
11/11/2009 Price change * $374,900 -6.3% $153 Long & Fos
10/03/2009 Price change * $399,900 -6.8% $163 Long & Fos
08/27/2009 Price change * $429,000 -18.3% $175 Long & Fos
07/18/2009 Price change * $525,000 -2.8% $214 Long & Fos
06/05/2009 Price change * $539,995 -1.8% $221 Listhub
05/01/2009 Listed for sale * $549,900 -8.2% $225 Listhub
08/15/2008 Price change * $598,888 -4.2% $245 Homes.com
08/06/2008 Listed for sale * $624,900 -3.8% $255 Homes.com
05/15/2008 Listed for sale * $649,900 28.7% $266 Agent
0 votes Thank Flag Link Wed Aug 11, 2010
AS A NATIVE AND A REALTOR FOR 25 YEARS, CHICKS BEACH IS A LIFESTYLE NOT JUST A LOCATION.
IT HAS ALWAYS BEEN ONE OF THE "BEACHY LOCATIONS " IN VIRGINIA BEACH. IT IS A CLOSELY KNIT NEIGHBORHOOD OF YOUNG FAMILYS AND COUPLES, WHO ENJOY THE OUT OF DOORS LIFESTYLE. BIKING, SWIMMING, RUNNING, ECT. IT IS CLOSE TO THE NAVAL AMPHIB BASE, CLOSE TO I-64, AND TO NORFOLK INTERNATIONAL AIRPORT. THERE IS A VARITY OF RESTURANTS, MARINAS, BEACHES THAT ARE WITHIN WALKING OR BIKING DISTANCE. SMALL YARDS, AND LOTS OF LIVE OAKS MAKE IT A WONDERFUL PLACE TO LIVE.
MARY ADDISON, REALTOR, THE REAL ESTATE SHOPPE VB.
HOPE THIS HELPS EXPLAIN...
0 votes Thank Flag Link Mon Jul 19, 2010
20 months later, some are finally coming down.

4460 Lee Ave (23455) Example:
$599 start
$499
$429
$399 As of this post and still for sale.

Prediction: I still see more Virginia Beach price reductions over the winter 2009 months. I will update the post in another 20 months.
0 votes Thank Flag Link Tue Oct 20, 2009
beware of the used house salesman!!!
0 votes Thank Flag Link Tue Jul 29, 2008
Bubble Boy, you should be banned!
Holly - This is the time, even if a seller believes their property is worth $500 per square ft, it is the buyer who will determine the price in this (or any) market. With the guidance of your agent and the appraiser's opinion, you can get a house at fair market value. If the seller is out of control, buy the next house instead! Luckily, there are plenty to choose from. Chicks Beach is like shopping in a Boutique store, where your jeans will cost $250 and at the gap they are only $75. It is like this for all things for sale!!
0 votes Thank Flag Link Sun Jul 27, 2008
Holly - you are correct in that the Chick's Beach market has really slowed in the past year. The market is saturated with duplex condos. This area of VB saw some of the highest value increases and the higher they rise, the harder they fall. There have been a couple of foreclosures there and historically, the best time to get a good deal along the bay is cold weather season. Be patient and your price will come!
Web Reference: http://www.tinamerritt.com
0 votes Thank Flag Link Sat Jul 26, 2008
Holly,
As a listing agent, I have encountered many scenarios where the sellers have gotten an appraisal from two years ago when the market climate was different. Based on that outdated appraisal price, they are looking initially to sell for more than what their homes are worth now. Educating some sellers takes more time than others on the importance of reaching a correct price that will get it sold. Because of that, it usually sits on the market awhile until they realize it is not getting any activity and then they start to slowly lower the price. Another approach that seems to work when dealing with overpriced properties is to question whether the asking price will become the appraisal price. No matter what the seller WANTS to net they won't be getting it unless it appraises. By the way, living at the beach is great and well worth it! I am a north end beach resident, and the location allows me lots of great ways to spend time with my family and friends. Plus, there's so much you can do without spending a dime!
Hope this helps!
Anja Howard
GSH Oceanfront
0 votes Thank Flag Link Sat Jul 26, 2008
HA !!! Bubble buy !!! Wow I have seen you all over craigs list. I wonder who you really are !
0 votes Thank Flag Link Fri Jul 25, 2008
By the way Holly, I don't see any properties selling at $500 a square foot – more like $125 to $325 a sq. ft. But again, these are located within walking distance to the water!

Properties in Chick’s Beach are typically selling between $300,000 - $700,000, and new construction is going under contract in as little as 30 days. In 2007, about 100 properties closed, or about 3 ½ properties each day. This year, 3 properties have sold and 5 are pending. Several of those were priced around $370,000 and went under contract in just 6 days. A property for just over 1 million went under contract in 96 days.

Where else can you buy a brand new 2,400 square foot home that's literally 100 - 200 feet from the Chesapeake Bay/Atlantic Ocean for just $580,000?

Again, location, location, location!

Frank Biganski, Realtor ABR
(757) 303-0517
0 votes Thank Flag Link Thu Feb 7, 2008
Holly,

It all has to due with supply and demand. That, and the fact that it's so close to the beach. If you do not need to live so close to water, then you can get a property for half the price about 15 miles inland.

If you're not working with a Realtor, and you want to see what similar properties have sold for in that area, contact me thru my website and I'll be happy to email you comps, days on market, list price verses sales price, etc.

Location, location, location!

Frank Biganski, Realtor ABR
(757) 303-0517
0 votes Thank Flag Link Thu Feb 7, 2008
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