Just a little self-indulgent whimper: My nightmare has come true--I am now upside-down. The neighbors two doors down from me have just listed their townhouse (identical floorplan to mine) for about about $65K less than I paid for mine three and a half years ago. It's $125K less than THEY paid for it (heaven knows how they are managing that!) a few months after I bought. It's highly unlikely that they'll sell it for more than they're asking in this market (I'm in northern Virginia). Fortunately, I'm not trying to sell and my job is a good one and secure, so I suppose I can ride the storm. I had hoped to move back out west within the next year or two (want to, don't have to), but it looks like I'll be staying put for the time being.
And just to top off the aggrevation, these are annoying and inconsiderate neighbors who are moving all they way to....the rental unit next door to them. I don't even get the comfort of getting rid of them. Bummer.
This message has been edited. Last edited by: Timaran,
I have looked at Realtor.com. It doesn't mention anything about foreclosure or short sale. The sign out front gives the name of the agent and an ad that says that if the house hasn't sold in 120 days, he (the agent) will buy it. Is that common? Could that have (unethically??) influenced the low price (it's also lower than other townhouses in the area--including fixers--this townhouse is in good condition)? Or, is the market really dropping that fast?
REL, you keep saying that and it just isn't true. In my market, over half of the sales are foreclosures. You had better believe they are used as comps.
The TD back to the bank isn't used as a comp though it sometimes records in places like DQ and sales databases. But once it becomes a REO and is resold for 40%, you'd better believe people use that as a gauge of price.
The agencies that will buy back if not sold usually only buy back for what is owed on the mortgage. Sounds like your neighbors put down a hefty down payment when they bought.
Gwynster, if subject is a foreclosure, yes. If subject is not, no. There may lay the confusion.
Posters house is not a foreclosure. The neighboring property may be - she has to check that out. If she puts her home on the market, and it turn out the neighboring home is a foreclosure -then it will NOT be used as a comp for posters property.
Hope that clears things up. I should have elaborated. Sorry.
Curioser and curioser. There is a second house on my street now on the market (short sale, according to the listing) listed at about $50K more than the two doors down neighbor I mentioned in my first post. Two-Doors-Down has the agent who promises to buy the home if not sold in 120 days. Turns out that the agent is not what I would call "local," but rather from a town about 40 miles away (in a lower priced area than mine). All the other similar townhouses in my area are listed considerably above what Two-Doors-Down is asking (granted, they are "listed" and not yet "sold").
Is this common? Would an agent from a different community be expected to appropriately price a house in my area?
BTW, in response to one of the posts above, I obviously don't know (nor want to know) all of my neighbor's business, but I doubt that they made a large down payment. He works as a garbage collector, she doesn't work outside the home, they have always had (apparently) un-related adults living with them, presumably renting rooms from them. They bought exactly three years ago (ARM now adjusting and can't pay, perhaps?) and have moved out of the house they still own and into a rental. Call me a snob, but their overall behavior over the past three years does not suggest to me (and my other neighbors) that these are highly responsible people.
Sorry if I'm flogging a dead horse with these questions, but my other neighbors and I are reeling from Two-Doors-Down's ghastly price. None of us are planning to sell anytime soon, so are we over-reacting?
Timaran - try not to worry. Real estate gain and loss is about timing. If you are not in a position where you have to sell, then you needn't worry right now. Just use the information you know about the market to help govern spending decisions you may make in the near future. You aren't upsidedown at this point since you don't have to sell right now.
What Tangychick said - she said it well. I'm also in Northern Virginia, and pricing has settled now. Some realtors say they'll buy the house if it doesn't sell, but many times what they are willing to pay isn't at all helpful.... Don't worry about it, enjoy your townhome and hope the bad neighbors move soon... their lease is probably only a year, and maybe they'll move on...
Posts: 3623 | Location: Northern Virginia, USA | Registered: May 29, 2003
Thank you all for the input. It helps to have an unbiased review of our situation. It sounds like we are fritzing out unnecessarily at this time and we should just relax and hope that these neighbors will soon move on.
The neighbors two doors down from me have just listed their townhouse (identical floorplan to mine) for about about $65K less than I paid for mine three and a half years ago. It's $125K less than THEY paid for it (heaven knows how they are managing that!) a few months after I bought. It's highly unlikely that they'll sell it for more than they're asking in this market (I'm in northern Virginia). Fortunately, I'm not trying to sell and my job is a good one and secure, so I suppose I can ride the storm. I had hoped to move back out west within the next year or two (want to, don't have to), but it looks like I'll be staying put for the time being. 
Bummer.
