"1219 Fallsmead Way - Fallsmead - $795,000"
2 Comments - Show Original Post
I received a great comment today from a reader and wanted to share it with the audience. The original post for 1219 Fallsmead Way can be read by clicking on the address above. It will link you directly to the December 2008 post regarding this property in Fallsmead.
Kristin Buchanan said...
I have to comment on your assessment of this home and the fact that you think it will go for under $725,000 (granted, between the time you posted this and now the price has been dropped to compete with a listing 2 doors down that's the same model in the same basic shape). $725,000 is stealing the house from the current owners. Yes, the kitchen of this home needs updating, as do the baths. But for 50k or less you can update everything and have a lovely home in Fallsmead.
Also, you compare this house to one on Bettstrail and while they are in close proximity to each other, Bettstrail is NOT in the Fallsmead community, and that's a big point you have missed. In Fallsmead we enjoy ammenities such as a 17 acre private park (owned and maintained by the neighborhood), a private pool, tennis courts and walking trails thru our park. Bettstrail, while perfectly nice, has none of these ammenities. Because of our strong community ties, Fallsmead is a very desirable for families with kids.
I appreciate your assessment here, but I think that throwing out a random price (that's VERY low) in a crummy real estate market is a HUGE disservice. Instead of telling people that everything will go for less than the list price, why don't you provide a helpful service to sellers and tell them what they need to do to make their homes sell for MORE than they originally thought. In this market, nothing is moving, so suggesting price reductions and that people make low ball offers is totally misguided.
February 8, 2009 3:24 PM
PotomacSecretAgent said...
Kristin;
We are in a very difficult market. We all are in agreement on this point.
There ARE homes selling in this market. The homes that are priced properly are selling quickly, and is isolated cases, for more than asking price.
To say that I am assigning "RANDOM" prices to these homes is not true. Although there is not an exact science to setting price, I can tell you that I have been right on target over the past year with most of my predictions. To prove my point, you should re-visit some of the reviews that I have done in the past and see what the final settlement prices were. I have them listed in the reviews when the information becomes public. In almost all cases my predictions are within one percent of the actual settlement price. The statistical possibility that my assessments are random is near zero.
A home is worth only what someone is willing to pay for it. I too live in Potomac. At the height of the market my home was worth $1.4mm. I would be lucky to get $1.1mm for it today. Am I happy about this? No, I am not.
I will concede that the property on Bettstrail was NOT in the Fallsmead community. It was though, BY FAR, a nicer home and better value then the homes in Fallsmead at that time. The homes are within a few blocks of each other and WERE competing in the same marketplace for the same purchasers. Bettstrail was the first of all these homes to sell. This fact supports my opinion that it was a better value. Do you agree?
In many of my reviews I make it a point to comment on what can be done to make a home more appealing and to sell more quickly at the best price. Some sellers take my advice, others do not. I do my best to be honest and objective in my analysis on homes reviewed. That is the reason I do not review my own listings.
I know you live in Fallsmead and are defending a community you love. Fallsmead is a WONDERFUL community. This market correction is normal and part of the cyclical nature of the real estate market. Anyone buying today IS stealing a home. That is the definition of a BUYERS MARKET. The market will eventually swing back the other way, and homes will again increase in value. (It cannot happen soon enough!)
For now, we are stuck in the unpleasant end of a normal real estate cycle. Until the tide turns, we have to accept that prices will trend lower. For those that do not need to sell, there should be no worries. For those that must sell and get less for their home, we can only hope that they STEAL a home in the market where they are moving.
Thanks so much for your comments. Please continue to share your opinions on the blog. I still learn from my readers every day.
February 8, 2009 4:25 PM
Posts
The main problem with homes in the Fallsmead neighborhood is the additional Rockville city taxes that are due each year. Based on my calculations, the taxes amount to approximately $2,500 a year over a comparable house in Potomac (i.e. on the other side of Wooton Parkway).
ReplyDeleteThe $2,500 paid in taxes to Rockville is worth an additional $30,000 in purchasing power based on a 30-year mortgage at 5.5%. You could afford to buy in Potomac proper for that amount of money, and you would build up equity in a home to boot!
The main problem with homes in the Fallsmead neighborhood is the additional Rockville city taxes that are due each year. Based on my calculations, the taxes amount to approximately $2,500 a year over a comparable house in Potomac (i.e. on the other side of Wooton Parkway).
ReplyDeleteThe $2,500 paid in taxes to Rockville is worth an additional $30,000 in purchasing power based on a 30-year mortgage at 5.5%. You could afford to buy in Potomac proper for that amount of money, and you would build up equity in a home to boot!
It is a little known fact that the Fallsmead community is in the Rockville City tax district. Your analysis regarding the ability to afford $30K more in purchase price when purchasing ARE included in Rockville that are NOT included in Potomac.....Trash pickup is included in the tax bill in Fallsmead. You also have patrols by Rockville Police.
ReplyDeleteAre these additional services worth $2500 per year? That will be up to the buyer. The sense of community in Fallsmead is something that you cannot put a price on. Some families fall in love with the neighborhood and have no issue with the tax surcharge.
Thanks so much for responding to the post. Please continue to read.