Last week my Will This Affect the Resale Value of My Home post looked at the issue with power lines and water towers as possible issues with the resale value of your home. This week we are going to look at a serious issue in many Northern Virginia neighborhoods, foreclosures and how they may affect the value of your home.
Foreclosures vary from community to community. In some areas you might not be able to tell a home is in foreclosure from any other for sale in the neighborhood. In others you may find signs that announce the property is a foreclosure or see homes that who obvious signs of neglect.
So how do you know whether a foreclosure in your neighborhood is affecting the value of your property? One of the key components of determine the value of your home when it is being sold is a professional appraisal. In a neighborhood where foreclosures are few and far between the chances are an appraiser will not need to use a property that has sold as a foreclosure as a comparable property and there won't be any issue. However in a neighborhood where there have been a number of foreclosures, appraisers have to include those sales in their comps. Most appraisers will try and discount the value of a foreclosure property but where they are a majority of the sales in the neighborhood then they will affect the value of your home.
If you live in one of the areas where there are a large amount of foreclosures you can expect to see a slight drop in your value. It may not always be about lower prices but also about buyer's feelings about the area. If they perceive the area is showing signs of neglect they will automatically discount the value of your property even if it is in top shape and you will need to make a tough decision about pricing your home to reflect an issue you have no control over.
A secondary affect of foreclosures in areas with HOA and condo associations is the impact of the uncollected dues and fees on current homeowners. Usually before a property goes into foreclosure the owners stop paying their monthly HOA or condo assessments. Over time depending on the number of unit in distress the association's budgets can take a hit and current owners may end up being tasked with making up the shortfall. As a result association fees rise and that increase in fees may make a property less desirable to a future buyer. Condo buildings are at the highest risk for lower values due to foreclosures as they are often the only comps an appraiser can use.
Foreclosures can affect the value of your home and you need to be aware of what is going on in your neighborhood. A professional Realtor® is the best source of information on how many foreclosures are currently in your neighborhood, how many have sold and current strategies for getting your home SOLD in today's market.
More information on Northern Virginia Foreclosures
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As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.
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To be correct George Washington's Grist Mill was also a whiskey distillery. As a whiskey distillery it was the the largest in America in 1799 producing about 11,000 gallons of whiskey a year. The16-foot waterwheel that runs the giant gears and millstones is the only remaining operating Oliver Evans Automated Milling System in America. You can't sample whiskey at the mill but you can during the summer season buy fresh ground cornmeal. FYI as a little historical aside or perhaps a final Jeopardy question, do you know where the only whiskey distillery outside of Kentucky is? Yes that would be the Smith Bowman Distillery in Fredericksburg Virginia that produces Virginia Gentleman. 
In the early 1950's two future presidents Richard Nixon and Gerald Ford called Parkfairfax home. My parents lived just one door down from the Nixon's in what were at the time rental apartments located in Alexandria VA. Originally built constructed in 1941 to fulfill a housing shortage need for government employees close to Washington DC the homes today still are popular with buyers of all ages. 
Did the last sale in your neighborhood have granite counters and you don't? Adjust your price downward.
Does your home have a finished walk-out basement and the last sale didn't? Adjust your price upwards. 
Do you only have three bedrooms above ground and the neighbor has four? Adjust your price downward. But wait I have a legal bedroom in the basement doesn't that count? Yes, but not the same value in an appraisal as the one above grade.
At the same time that the original homes in Kings Park were going up at "end of Braddock Road" the developer also had their sights set on land just a little further west. In 1967 the deed to the land that would then become Kings Park West was approved by the county and in 1968 the first homes were completed. The theme continued with more names right out of the history books of England and with the addition of five new models; Essex, Regent, Baron, Cromwell and York, larger than in the original Kings Park neighborhood. Just as the first neighborhood had access to community parks Kings Park West also has Royal Lake and four community pools.
For buyers relocating to 
Just a minute down the Fairfax County Parkway is the neighborhood of South Run. Nestled on tree lined 1/3 acre or larger lots the 530 homes that make up the South Run neighborhood seem like they area world away from the hustle and bustle of shopping and commuting. Homeowners in South Run also enjoy the feel of a long along neighborhood spirit. With BBQ's in the summer, pool parties, Halloween activities and an active neighborhood social committee that plans dozens of events a year the neighborhood has an unusual community feel in an area known for the commuter lifestyle. 
For families with school age children these neighborhoods are served by terrific Fairfax County Schools. Elementary age students attend 
Buyers today are often thrown for a loop when they look around a neighborhood and see so many FOR SALE signs. The sign riders advertising foreclosures or short sales don't help. However in the case of some buyers it has nothing to do with the home values in the neighborhood, they can see past the market today and know that in the Northern Virginia area prices do recover. What throws them for a loop is whether the large utility right away, electric poles and water towers will affect the value of their home when they go to sell.
My answer is always YES. Now some may disagree with that answer but if a buyer is asking the question today, then other buyers will ask the same question when the house comes up for sale again in the future. Given a choice to buy a home without the power lines running through the backyard or not then I will always advise a buyer on the side of NOT. Now if the poles can only been seen in the dead of winter perhaps there is another answer but when they are what you will look at 365 days a year. NOPE.
So have you recovered from all of the walking on the last round of the Magical History Tour? Did you remember to hold on to your ticket? Today we are going to take a little different mode of transportation for our tour. We are going to head out on the little Potomac River to get a different view of the area.
Alright what else can find along the waterway as we head down river? If you look to your left, no I said your left, you will see the 
Lincoln's imposing figure sitting on the throne looks out across the reflecting pool to the WWII Memorial and Washington Monument. 
Now that it is getting dark we are going to take one last stop before our surprise dinner. Seeing Washington DC at night gives you an entirely different perspective of the city. Most people who tour the area only think about coming out during the day. However take a look at the Jefferson Memorial bathed in light. 
