Sales Analysis in Stratford Club (Leesburg, VA)

Thinking of selling your condo in Stratford Club in Leesburg, VA?  Here's a little info you may find helpful.

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: 

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

http://www.vickychrisner.com/

703-669-3142

VChrisner@KW.com

Lo Co Sells Properties with Delinquent Real Estate Taxes

PUBLIC NOTICE:  Loudoun County is offering for sale properties with delinquent real estate taxes on Friday, July 23, 2010 at the Courthouse Steps.  If you'd like more information about how these auctions work, please feel free to send me an email or call me.

Vicky Chrisner

Keller Williams Realty

Ofc: 703-669-3142

VChrisner@KW.com

Getting Bang for Your Buck - The Value of Home Improvements

With this post, I begin a little mini series on how to spend your home improvement dollars wisely.  While buyers may enjoy these posts, they are targeted toward current home owners who eventually - tomorrow, next year or in 5 years, expect to sell. 

The number one thing I want to tell you is this:  If you're thinking of selling in the next year, DO NOT do home improvements - it will return you less than 100% of your dollars.  It's a poor investment. 

That does not mean not to do maintenance.  Sellers, when they are looking for dollars in their house, get confused as to what is improvement and what is maintenance.  Here's a rule of thumb - if the house should have those things, then it's not an improvement.

Replaced your roof last year?  Good for you, and good for your buyers, too.  But, SURPRISE! the buyers expected your home to have a roof - one that doesn't leak and isn't requiring immediate replacement.  New mechanics - like HVAC or water heater?  Nope, not an improvement.  Your buyer was looking for a house with heat and hot water - it was "assumed" that those things would come with the house. 

Please don't get me wrong - these things have value.  Look at your comps, is everything original, or do they all have replaced systems, too?  That's how you determine if yours might bring you extra dollars.  If you are just keeping up with the Jones's then your home value will be approximately the same as the Jones' home.

Of course, if you replaced 20 year asphault shingles with 40 year architectural shingles... well, that is an improvement.  If you now have a tankless water heater that saves hundreds a year in utility bills and never requires a waiting period to get more hot water, this, too would be an improvement.  If your HVAC was one zone (as are all of those in your competitor's homes) and your's is now a 2-3 zone, energy star certified system with an electronic air filter and built in humidifier - NOW we're talking improvement.  Did you replace your vinyl siding with Hardi plank last year and add stone accents.... cha-ching!  (You're still likely to recoup less than you actually spent, but you will see some added home price value.)

Many of these things may be invisible when someone is breezing through your home taking a quick look, so make sure that you are listing both major maintenance and home improvements when you're agent is preparing the marketing materials. And, remember, good bones and systems will not always equal the highest price. 

Buyers buy emotionally and justify logically.  Never once have I been showing a home and had a buyer just become awe-struck by a water heater and stare.  This is NOT where they fall in love with your home.

I am going to continue this series, in which I will discuss home improvements and the expected return for your investment based on a recent study by the National Association of REALTORS. 

I will also address how buyers will assess your home.  You may be surprised.  So, stay tuned for more..... http://www.therealestatewhisperer.blogspot.com/

If you're in the Washington DC Metro area and you'd like to find out what the sales in your neighborhood have been recently, order a market snapshot by clicking HERE. Or,  contact me directly at vchrisner@kw.com for a personal consultation.