"Greetings to our current and Former Fair Chase Home Owners. I hope this email finds all of you in good health. I wanted to let you know that I am now selling in our New Bristow Village community. We are building beautiful single family homes that range in size from 2900 to 3800 sq. ft. We have 10 homes that will be ready to move into by the end of September, and management has given us unbelievable prices and mortgage incentives for those that can take advantage.
As an example, our Preston model features 3250 sq. ft plus a finished lower level with a 2 car garage and is loaded with interior upgrades. We have this home priced at $525,000! ($100K in price reduction). In addition, we will provide a 30 year fixed rate loan at just 5.75% and also pay 4% towards closing costs.
Please let me know if you would like to schedule an appointment this weekend to review the homes that are available.
Warmest Regards,
XXX XXXXX
Community Sales Representative
Cell Number 703-XXX-XXXX
Referrals are vital to my success and they are greatly appreciated"
Posts
The air is beginning to come out of the bubble.
ReplyDeleteA Redskins fan
These price reductions are obviously brought on by America hating bubble heads.
ReplyDelete100K off, WOW, so somebody is already upside down to the tune of 100K.
ReplyDeleteThat type of interest don't exist anymore.
ReplyDeleteThe thing that I like about this site is the exchange of relevant information and links...I won't mention names, but a couple people on this site love to talk about themselves. Please bring something productive to the discussion and refrain from using this site to feather your own nest. How about a link to a story or listing to refute the original thread from time to time? I especially love it when people say "a house is not an investment, it is meant to be lived in and that is why prices will continue to rise" then in the next breath, brag about how much money they made and how smart they were for buying...make up you mind! No, I am not a bitter bubblehead, and I'll be the first to admit that I was lucky for buying the places that made money, but a couple of you bought years ago and praise yourselves as though you knew the prices would go up like they did. Nobody expected this type of return from housing in 2000, but they started to expect it in 2004. This type of thinking is exactly what has created the buzz and herd mentality. Tighten up so before this site goes the same place housing is going...down the tubes!
ReplyDeletewaiting for godot,
ReplyDeletetouche!!!!
but to think this type of mentality is new is the problem.
i'm the upside down for 9 years guy and when i bought it seemed and everybody told me I HAD TO BUY OR I WOULD NEVER BE ABLE TO.
that's why i'm so against the "it's never a wrong time to buy crowd"
there is a wrong time and it's not fun and it's now.
that's reality.
me and the kids walked into a Theater and it had this big display about a 0% interest credit card for buying movie tickets and god knows what else and i told them to remember this and tell your kids about it.
this is insane, 0% can't go on forever.
yet it still does,
sooner or later the bulls and the bears alike are gonna pay.
and what's 10% interest gonna do for RE.
maybe that's not our problem, we'll save that for our kids.
at least we saved them something.
Buy! Buy! Buy!
ReplyDeleteSell! Sell! Sell!
ReplyDeleteCrash and Burn baby!!!
I just looked up Bristow, Virginia on Google Map. It's west of Manassas, almost 40 miles from downtown DC. That price may be about right or it may be on the high side, I don't know. What I can say with some assurance, however, is that the drive into the city from Bristow would be one hellish, soul-crushing commute.
ReplyDeleteCommuting Is a Drag (on the Economy)
ReplyDeleteby Laura Rowley
http://finance.yahoo.com/columnist/article/moneyhappy/7928
We will see the outer suburbs "collapse".
Waiting for Godot,
ReplyDeleteHere's a link: http://factfinder.census.gov/servlet/SAFFFacts?_event=&geo_id=05000US51153&_geoContext=01000US%7C04000US51%7C05000US51153&_street=&_county=prince+william&_cityTown=prince+william&_state=04000US51&_zip=&_lang=en&_sse=on&ActiveGeoDiv=geoSelect&_useEV=&pctxt=fph&pgsl=050&_submenuId=factsheet_1&ds_name=ACS_2004_SAFF&_ci_nbr=null&qr_name=null%AE%3Dnull%3Anull®=null%AE%3Dnull%3Anull%3Anull&_keyword=&_industry=
It's to Census data for Prince William County the location of Bristow Village. In 2000 Prince william had a vacant housing rate of 3.6% compared to a national rate of 9.0%. In 2004, the rate was more or less the same at 3.5% while the national average had grown to 10.4%.
Based on the local imbalance of supply and demand, I don't think there will be a price collaspe in Prince William.
crispy&cole said...
ReplyDeleteThis is clearly a "fake" email as the bubble does not exist and all of us who believe so are poor, stupid and financially illiterate.
LOL... poor "i bought at the peak and hope i don't lose my shirt" people! funny thing, K Hovanian Homes have a "up to $100K off" ready to move in homes right now.
NOW, WHO'S STUPID! LOL!
Georgianna Velardi, a broker at Century 21 Petrey Real Estate in Long Beach, said she had recently seen more sellers looking for a way out of high mortgage payments.
ReplyDeleteA couple in their late 30’s came in to price their three-bedroom ranch. The interest rate on their mortgage had risen to 9.5 percent, from 3.5 percent three years ago. They didn’t have the equity or good credit to qualify for refinancing at a lower rate. To make matters worse, on July 1 the City of Long Beach raised property taxes 25 percent. “They needed to get out because they were so overwhelmed,” Ms. Velardi said.
...from Long Island Rude Awakening
From the NY Times (courtesy nnjbubble.blogspot): Taking the Measure of the Market
How can this be? Everyone knows that all the banks use a worst-case-scenario method, right?
That will be the real shocker to some of these folks. Unable or unwilling to pay the higher (floating) mortgage they will go to the bank to re-fi at a fixed rate, only to be told that they don't qualify.
Anonymous said...
ReplyDelete"100K off, WOW, so somebody is already upside down to the tune of 100K."
I think they said this was a NEW development ... So, the $100K off is probably off an asking price that never was. And even if it was, it doesn't mean anything actually sold for that price. Besides, why are you assuming someone would have bought with $0 down? People who can't afford to buy with at least a minimal downpayment are rarer than a bubblehead admitting he'd rather be a housing head ... but lacks the wherewithal to buy the McMansion he really craves.
If they have reduced the price by 100K,
ReplyDeletecould a smart buyer negotiate another 50K off?
If you are truly interested, I might have some advice.
ReplyDeleteAbout negotiating va_investor?
ReplyDeleteSure.
anon 10:23,
ReplyDeleteSee what the builder (seller) is offering the selling agent. If you feel confidant to make your own deal, insist that this amount be subtracted from your final price.
If you feel you need an agent, negotiate with the agent. There are alot of hungry agents out there.
You should allow your agent a max of 1%. In other words, if the seller is offering the selling agent 4%, you should get a 3% credit at closing from your agent.
If you don't have/need an agent, I would demand the 4% from the builder/seller.
FWIW.
Good tip va_investor.
ReplyDeleteIt’s not going to bottom out immediately. ‘We’re going to see, I believe, what we saw in 1988: a flattening, a gradual downturn and then down and down until it hits bottom.
ReplyDelete"The interest rate on their mortgage had risen to 9.5 percent, from 3.5 percent three years ago. They didn’t have the equity or good credit to qualify for refinancing at a lower rate."
ReplyDeleteIf they bought the house to live in they should have gotten a fixed rate while they were at the lowest in many many years. Instead they got a teaser and now 9.5% !!! Plus taxes going up 25%. What is that, assessed value or tax rate increase?
What happens when their finance division goes tits up? Then I guess the 525K loan at 5.75% gets sold and readjusts to 18% (or whatever the prime rate will be at the time)?
ReplyDelete