First, a little background. Stratford Club was a rental apartment community. Toll Brothers purchased the community at the height of the market to do condo conversions. They struggled like everyone else, and have rented many of the condos to keep some cash flow, prolonging the sales phase. So, if you're planning to sell today you are still competing with the Toll Brothers sales office.
What's interesting is that converted condos have probably been lived in as rentals post conversion, and if not, they were at least lived in as apartments "pre conversion", so no one is moving into the covetted "NEW HOME" they are all "used". Yet, those being sold by the on site sales office continue to be more in demand.
OK, enough background. Here is what sellers really want to know... How much can I get? For the "Arlington" (one bedroom floorplan without loft, without garage), here is what my preliminary research showed:
OK, enough background. Here is what sellers really want to know... How much can I get? For the "Arlington" (one bedroom floorplan without loft, without garage), here is what my preliminary research showed:
1st time sales: Homes purchased from Toll are selling for about $193,000 with Toll paying all closing costs (presumably around $6K worth) and one year condo fees (roughly $2500). (If you're a seller, this means that the net is about $186,500).
Resales: To offset the various "advantages" that Toll has over most sellers, someone selling their similar condo, in similar condition, would need to be priced at a value to get the attention of home buyers. My generalized estimate for a traditional sale comparable to the Toll homes being offered is that a seller could sell for $175K or so, with variations of $10K above or below that depending on specifics.
Distress Sales: But here is the reality of the situation.... distress sales (foreclosures and short sales) are common in this neighborhood, and they are far more of a hassle for buyers. Short sales are more plentiful than foreclosures and are the hardest of the hard for everyone... buyers, sellers, listing and selling agents. So, to induce buyers to put up with the hassle, short sales must be priced at a true "bargain" price. As a result, what we are seeing for that floorplan in that neighborhood are distress sales in the mid $140K's.
A Final Note for Buyers: A forty thousand dollar savings for a buyer is HUGE. It is difficult to find anywhere near that kind savings in that price range. So, this is one example when it makes sense to consider a short sale over a traditional sale from the sales office. There are hassles, and pros and cons, but that is enough of a discount for one to think "hmmm... this time, it might be worth it."
A Final Note for Sellers: If you have a condo in Stratford Club and would like a more specific CMA, please call. You don't even have to clean your house, I can provide more customized information for you right over the phone, and if we can come up with some tentative strategies that might work for you, then I am happy to meet you in person and look at your condo and talk to you in more detail.
Vicky Chrisner
Keller Williams Realty, Leesburg
703-669-3142
