Under Contract x2

I am reviewing 7301 Pimmit Ct. as it has gone under contract twice in the past month and this will be a longer post than normal.

As this is the second time in a month that 7301 Pimmit Ct has gone under contract, I had expected the higher price of $330,000 to dissuade an offer as for $10,000 more you could get a move in ready home in the area but apparently I was wrong.

The first time this month it was Contingent with No Kick Out (Cont/NO KO) now it is Contingent with Kick Out (Cont/KO). I think it is interesting to note that a short sale starter house is willing to wait for some to sell their other property. While the property can still be marketed I would think they would be carrying a larger risk.

In this market all I can think of would be it would be a move up from a one or two bedroom condo, those prices range from $69,900 to $300,000 and all currently listed properties in the surrounding area have an median days on market of 61 (average days on market of 92). The Northern Virginia Association of Realtors June 2010 Market Statistics for Fairfax County have a median sale of $215,000 and days on market of 44, across all Condominium types.

Next lets go through the price changes on the property.
01/21/2008 $450,000
02/13/2008 $355,000
07/26/2008 $350,000
09/05/2008 $300,000
07/31/2009 $310,000
03/04/2010 $320,000
07/12/2010 $330,000
Please note that as I don't have direct access to the MLS I can only rely on my notes and publically accessible information on the internet. For exact timing consult a Realtor.

For current on the market comparables, as of today, two new houses both considered "Fixer-Uppers" but not marketed as uninhabitable, were listed in Pimmit Hills both priced for $330,000 or under. This brings the total of houses in Pimmit Hills available for sale to 4 under ranging from $290,000 to $340,000 with an additional 2 land only lots available for $325,000. Finally, there have been 4 houses that have gone through foreclosure and reverted back to the bank in the past month, as reported in the Trustee’s Sale section of the Washington Post. These pieces of property will add to the already available housing pool in Pimmit Hills.

Based on size and condition of 7301 Pimmit Ct. the only two recent comps I find within the past three months are from May 2010 one being in nice condition at 2044 Cherri Dr selling for a net of $296,520 and the other being uninhabitable at 7515 Lisle Ave selling for $275,000. Both of these have a smaller "actual lot" but a significantly larger buildable area. The other sale in the area is a larger sized house in much better condition.

Instead of my usual market assessment instead I turn to Are Andresen of Soldsense who makes some interesting comparisons of 3 bedroom, 1 bathroom homes in Pimmit Hills for the first half of 2010 in his blog on Active Rain. I did pull those houses and found that the public MLS data did not match to the Fairfax County Tax Record data for many of the houses, some of the 3 bedroom 1 bathroom MLS houses came up as 3 bedroom 1.5 or 2 baths in the tax records. There is also the fact that the majority of 3 bedroom 1 bathroom homes sold were from 1,052 to 1,768 sq. ft. We thank Are for his insightful overview, but this just goes to show how difficult it can be to do direct comparisons as there are multiple metrics that can be used to assess property value.

Now for the Review of 7301 Pimmit Ct.
Positive aspects
Siding appears to be in good shape.
Well manicured lawn, shrubs, and bushes next to a wooded area.
It is a large 0.41 acre lot zoned R-4.
Negative aspects
Land is listed as Buildable-Poor Lot.
Lot is in a Chesapeake Bay Resource Protection Area limiting potential for additions and changes.
The house is next to a drainage culvert.
Lot is in a 100-year flood plain and would likely require flood insurance.
Lot is in the shape of a pentagon.
Significant moisture and mold issues have been identified.
Current addition is not permitted by the Fairfax County and would have to be removed.
There are no appliances in the house besides a dishwasher.
The kitchen would need major work to be useable.
There are drywall issues.
Windows are single pane glass.
There is no driveway.
Roof may need to be replaced in 3-4 years.
Porch light is hanging by the wires.
The ceiling fan is put up with tape.
The neighbor has chickens.