Generally, I look at data on my blog on a county level. That's really like looking at the forest. But sometimes looking at a specific tree can be more instructional. So today I'd like to take a look at a specific house and it's recent history in search of a buyer.
This home is in the subdivision of Erinbrook in northern Culpeper County.
This home is a three bedroom, two and a half bath rambler with a bonus room over the two car garage. It has a very open floor plan with vaulted celings in the main living area. It sits on 1.6 acres with most of the property in the front of the house. There is a pool and hot tub in the back yard. There's a fenced yard as well as a storage shed. And the back of the house is beautifully landscaped. The house was built in 1990.
The house was originally purchased in September of 2003 by two real estate agents. The purchase price was $349,900. They put $30,000 down and got a mortgage for the remaining $319,900. The house was on the market 108 days when they bought it. In September of 2003 that was a fairly long time. But the house was sold in "as is" condition so it would have been considered less desirable than properties that allowed a home inspection contingency.
The house was put back on the market for sale in March of 2006. The list price was $524,900. The listing agents were the two agents who had bought the house two and a half years earlier. The listing indicates that the HVAC was new at this time. It's also likely that the kitchen was remodeled during that time since it mentions Corian countertops. The listing price was eventually lowered to $479,900. And, after 304 days on the market the listing shows that it expired.
In actuality, at that point in time, the property went into foreclosure.
It was relisted with the bank as the owner in March of 2007. The asking price had now dropped $80,000 to $399,900. That shows you how aggressively banks price a foreclosure property! The current listing price is $379,900 and I'm unable to find any comps that support even that price. My estimate is that the price should be dropped again to $340,000. It will probably sell for about $200,000 less than it was listed for almost a year and a half ago.
So, what's wrong with the house, you want to know! Basically, nothing! It started wildly overpriced in a market where you can't get by with that. Once that happens in a falling market you're forever chasing the market down and never quite getting there. The open floor plan is very nice, but it can make furniture placement awkward and that may have dissuaded some buyers. A pool is a plus to about half the population and a negative to the other half. In effect it adds no additional value to the home from a pricing perspective (in this area).
The home, since it's owned by a bank, is sold "as is". That's a serious disadvantage in this market. It means potential buyers can not make their offer contingent on a home inspection. And while the house may be in great condition, there is so much inventory that no one needs to bother with one where you can't back out if you uncover problems later.
There have also been some water issues in this subdivision. I don't know to what extent they've impacted this particular property, as it does vary house to house. But it's something else that may make potential buyers think twice.
As is often true with empty homes, this one is getting a very neglected look. Yes, the lawn gets mowed, although not as regularly as if it was occupied. But the weeds are growing up through the walkway and the whole grounds have a "shaggy" feel to them.
Sooner or later, this property will sell. Banks hate to carry houses on the books and they will continue to drop the price until they can get it off their hands. I suspect, eventually, someone will get a very good deal. I also suspect that it will be a very long time before this house is worth $524,900!
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