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Like To Negotiate? Buy Your Home In The Winter

Question: We are planning to buy a home in the next 12 months and wondering what the real estate market is like during the winter. We’ve heard it’s a bad time to sell, but does that mean we won’t be able to find anything we like?

Answer: I love working with buyers in the winter because we have more opportunity to negotiate (a nice reward for fumbling with keys in the dark when it’s 30 degrees) and the probability of finding a seller ready to negotiate increases substantially. In Northern Virginia, the winter market generally runs from late November through late February/early March (Thanksgiving to March Madness) and is defined by increased buyer leverage, less contract activity and fewer new listings. While many buyers can benefit from winter shopping, it’s not the right time for everybody.

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Buy In The Winter If…

  • You’re a bargain hunter
  • What you like is priced just outside of your budget
  • There is a regular supply of homes you like
  • You can accept having a few offers rejected

Wait For The Spring If…

  • You have specific, hard-to-find criteria
  • You value the perfect home over a great deal
  • Your purchase is contingent on selling your current home (requires additional conversation)

That’s not to say you can’t negotiate a great deal in the spring or find a unique property in the winter, but if you’re playing the odds, the above is a good set of guidelines for deciding the best seasons to focus on a purchase.

I’ll let you review the trends in Northern Virginia for yourself:

Buyer Leverage Increases In The Winter

In the winter, buyers pay about 2% less, relative to original asking price, than they do in the spring. On a $500,000 purchase, that’s $10,000 in savings.

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New Contracts To Purchase Drop By Half In The Winter

Buyers have more leverage in the winter because there are fewer of them actively searching the market.

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It’s Harder To Find What You Want

The probability of the home you want hitting the market in the winter drops substantially, making it difficult on selective buyers. This is also why fewer homes go under contract in the winter.  

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If you’re on the fence about buying this winter or not sure if you have time to prepare yourself to make a purchase, send me an email at Eli@EliResidential.com or give me a call at (703) 539-2529 to discuss your options and put a strategy in place.

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100th Ask Eli — How Am I Doing?

Today marks my 100th Ask Eli column, combining for nearly 60,000 words written about our local real estate market. How am I doing? What topics and statistics would you like to see more of?

One thing I’d like to do more of is use this space to help organize the community around ideas most residents care deeply about, but have little information on, like eliminating smoking from condos and saving/growing the tree canopy.

I appreciate everybody who has reached out with feedback, both positive and negative, and thoughtful questions that keep these columns relevant and organic. I also appreciate our active commenters who keep me on my toes and challenge me to back-up my opinions.

A special thank you to Scott Brodbeck and his team for providing us Arlingtonians a valuable source of hyper-local news coverage and a platform to discuss our opinions. Did you know that ARLnow is run from a small office with just a few people, not a newsrooms of fact-checkers, reporters, and writers? I was shocked by how much they accomplish with so few people. Kudos to Scott and his dedicated team.

Thank you for your support and I look forward to providing you with more honest, statistically-driven real estate discussion in my next 100 columns!

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How Old Is Arlington Housing?

Question: How old are most of the homes in Arlington and where are the newer homes located?

Answer: I thought I’d balance last week’s column on schools with something a bit less controversial… the age of our housing stock. The majority of housing units in Arlington were built from the 1930s through the 1950s.

With limited land available to build new communities, the majority of single family homes built in the 21st century are one-off projects replacing older homes instead of larger new communities you see elsewhere in the country.

I pulled data on all sales in Arlington since Jan 1, 2010 and broke it down by the decade. Each housing unit was built to provide some insight into the age of our market and where you’re likely to find the most homes for sale built in the 21st century. Note that this is not a dataset of all Arlington housing units, just those sold since 2010.

Data Highlights

  • About 40% of Arlington’s condo inventory was built in the 2000s and caters to our huge population of wealthy millennials
  • The fastest selling (highest demand) sub-market is for 1940s townhomes in Fairlington, a popular destination for young families due to affordability, convenience and walkability to Shirlington Village
  • Despite the average family size in the US decreasing by about one person since the mid 1900s, the average single family home built in the 21st century has 1.5 more bedrooms, 2 more bathrooms and is over twice the size (they also take the longest to sell)
  • The oldest home sold since 2010 was built in 1836 and located in the Alcova Heights neighborhood (off Glebe Rd, between Rt 50 and Columbia Pike) and sold for $950,000
  • Nearly half of single family homes built in the 21st century are located in the 22207 zip code
  • Housing built in the 1940s (4,647) and 2000s (4,218) make up 40% of the housing units sold since 2010
  • Single family homes built in the 1940s sell fastest among all single family homes, likely due to demand for homes to be torn down or expanded and renovated

 

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Data broken out by housing type and the decade it was built:

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Concentration of housing built in the 21st century, broken out type of housing, by zip code:

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Arlington School District With The Most Value

Question: How do Arlington County school systems impact the market price of homes in Arlington? Which districts offer the most value based on quality of education and the cost of buying a home?

Answer: For most families, finding the right home in Northern Virginia is a delicate balance of budget, schools and commute, with the latter two having the biggest impact on market price. If you’ve chosen to put down roots in Arlington, I’ve put together some data on Arlington County Public School districts for middle school and high school that will help you understand how your school district selection will impact your budget.

The Data

Please note that the data below is not based on all homes sold within a given school district. It is a sampling of homes within a specific sub-market in an attempt to present an apples-to-apples comparison of the premium/discount buyers can expect when searching within each district, that can be applied to other sub-markets. For example, the average sold price for homes in the Jefferson+Wakefield district is far less than $1M, but within the chosen sub-market, it is just over $1M.

In order to compare homes within a relatively similar and popular sub-market, I have chosen to use sales dating back to Jan 1, 2014 for detached homes built within the last 20 years with at least four bedrooms, excluding distressed sales. This prevents sales of tear-downs/full renovation homes from throwing off the data and gives us a pretty clear picture of the relative cost differential by school district. Not every home listing is populated with school districts (I estimate that 5-10% is missing at least one school), so those sales are excluded from the data. That is why the total sales for just middle school and just high school data are slightly higher than middle and high school combined data, because some listings just had one of the two fields populated.

School Rankings

GS Rating = GreatSchools.org rating for each school. I thought this would be an interesting, objective way to compare relative value based on a 3rd party rating, which has a huge influence on buyers’ decisions. You may also want to check out Niche.com for some different rankings of our publics schools and where Arlington County is ranked as the #1 school district in the DC area and in Virginia or US News and World Report for national rankings of our high schools.

Data Summary

For those of you familiar with the Arlington County Public School system and its impact on home prices, most of this data falls in line with expectations. Here are some comments on the findings:

  • Williamsburg+Yorktown is the highest rated school district combination in Arlington and, unsurprisingly, the most expensive to buy into.
  • Kenmore+Wakefield is the lowest rated school district combination in Arlington, but the second least expensive to buy into. However, due to the relatively low number of sales in this sub-market, the data here is slightly misleading because 2/3 of the sales are new construction which have a substantial impact on average sold price. The low number of total sales is due to the limited number of homes sold that are built in the last 20 years, not the a reflection on the total number of homes sold.
  • The best bang for your buck is the Swanson+Yorktown combination, offering the lowest cost per rating point (GreatSchools)
  • Despite having the fourth highest combined rating score (GreatSchools), Jefferson+Washington Lee is the second most expensive district to buy into. Why? It serves the popular and expensive Lyon Park community.
  • For reference, here are the Arlington County Middle School and High Schoolboundary maps.
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Once again, please remember that this is a limited data set meant to provide relative cost differential between school districts that can be applied across sub-markets. I chose to use this sub-market (described in Data section) because it offers, in my opinion, the cleanest results available. The sold prices within this sub-market are the most expensive in Arlington because it includes homes built in the last 20 years. Each district has numerous opportunities to buy detached homes at much lower prices, as well as townhouse and apartments for even less.

Which District Do You Think Offers The Most Value?

What do you think about this data? Even more importantly, for those of you who have children in Arlington County Public Schools, which districts do you think offer the most value for families, meaning, the best education relative to the cost of a house in that district?

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Douglas Park Neighborhood Spotlight

Where is it?

Douglas Park is a large neighborhood in South Arlington bordered by Columbia Pike to the north, S. Four Mile Run Drive to the west, S. Walter Reed Drive to the east, and ends at the intersection of each of those roads to the south.

It hosts multiple parks and Randolph Elementary School, although households in the southern portion of the neighborhood go to Hoffman-Boston Elementary and students in the northwestern corner are districted to Barcroft Elementary School. The majority of households are districted to Jefferson Middle School, but the Barcroft Elementary households in the northwest corner end up at Kenmore Middle School. Every household in Douglas Park ends up at Wakefield High School.

Douglas Park is a blended neighborhood of mostly residential housing, ranging from affordable multi-family buildings for rent or purchase along the northern and eastern borders, a few pockets of town homes built in the 1960s and again in the 2000s, but mostly single family homes build in the early/mid-1900s many of which are cape cods and bungalows that are popular targets for renovations and expansions.

About the interviewee:

Anne and her husband, Horacio, met in Colombia (the country) and moved to Shirlington in early 2015 before buying their home, where they’re raising two young children. They weren’t in a hurry to move, but found a home with potential on a street they loved, and bought their Douglas Park Cape Cod in late 2015.

They spent about three months renovating the kitchen, refinishing floors, and giving the house new life while trying to maintain the original charm as much as possible. Just after moving in, they dealt with some pipe issues that required them to tear up a lot of their front yard, but turned a bad situation into a positive by introducing some beautiful landscaping and hardscaping out front.

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What do you love about Douglas Park?

We’re part of an incredible community here. Being a bi-lingual family, we love living in a bi-lingual neighborhood. An added plus that we hadn’t thought to be so important before experiencing it, is the cross-generational interaction. The young families who just moved in hang out with neighbors who have lived here for decades.

It’s also very front-yard focused, so in the evenings and weekends, you’ll see most of the neighborhood out front, spending time together, not tucked away privately in their backyards (note: this was highlighted in the Claremont Neighborhood Spotlight and a trend in many South Arlington neighborhoods). It’s a beautiful, engaged, diverse community.

We also have great access to public transportation, despite not being near a Metro station. Whenever I can, I take the bus to work in Courthouse. Also, despite not having sidewalks, the streets are wide enough for kids to safely ride bikes and walk without being in danger.

 

What are some of your local favorites?

We’re so close to our favorite places in Shirlington and along Columbia Pike like Lost Dog, Thai Shirlington, Twisted Vines, Sugar Shack and Tacos & Tortas. We split grocery shopping between the Harris Teeter in Shirlington and Giant on Columbia Pike. We also spend a lot of time at Monroe and Douglas Parks because they are at either end of our street.

Do you have any experience with the school system?

Our kids are too young for APS still — they go to daycare, one in Douglas Park and another in Courthouse. We’re very happy with both. We are eager for when the kids can enter the public schools though.

Originally one of the reasons we moved to Arlington is because we were excited to send our kids to a bi-lingual elementary school, like Claremont or Key. Now that we’ve settled in Douglas Park, and can see Randolph Elementary from the front door, our kids will most likely go there.

We know that some of the schools in South Arlington rank lower than those to the north. My sister-in-law is a teacher in the APS and insists even the lowest ranking in Arlington is better than most of the schools in the country. Our neighbors who sent their kids through the neighborhood schools rave about the education as well.

Are there any neighborhood events?

The Fourth of July holiday is a lot of fun here. We have a parade, a big picnic, and a bunch of neighbors set off their own fireworks. There’s also a traveling potluck dinner that is well-attended and a fun way to meet new neighbors and hear our neighborhood historians tells stories about the families who have lived in each house.

What has your overall experience been?

We feel lucky to have ended up here, it’s better than we could have ever imagined. Everybody is so friendly and it’s been a huge help while raising two young kids, especially our energetic, social son (I can vouch for that!). The sense of community happened immediately and we look forward to being here for a very long time.

Thank you so much for your interview Anne and Horacio! I’m sure this will help people considering a move into or within Arlington who are looking for an affordable, family-friendly community like you described.

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Does A Pool Help Or Hurt When Selling?

Question: We installed an in-ground pool when we bought our house and now that we’re considering selling it, we’re wondering if it’s better to improve the condition of the pool or fill it in and replace it with more usable space.

Answer:

You Will Lose A Lot Of Buyers…

You will lose the majority of your buyer pool (pun intended) by offering your home for sale with a pool. With limited months of the year warm enough to use a pool, limited yard space, and high maintenance costs, most Arlington home buyers consider an in-ground pool a deal-breaker. You’ll see from the Fairfax County data that this is true for Northern Virginia, not just Arlington.

…But It May Not Matter In Arlington

This does not mean you should spends tens of thousands filling your pool in and covering it with new landscaping. Arlington has so few homes for sale with a pool that despite losing a large percentage of your potential buyers, you’re likely to benefit from the pool because it’s such a unique feature. Remember, it only takes one person/family to buy your home.

Arlington & Fairfax County Data

Since January 1 2012, only 29 detached homes have sold in Arlington with an in-ground pool, while during that same period, 1,548 homes in Fairfax County sold with an in-ground pool.

Arlington sellers with a pool fared well with an average of only 29.3 days on market, compared to about 50 days on market for all other detached homes. 18 of the 29 sales sold in 10 days or less.

On average, those 29 sales were 3 percent lower than the original asking price, with a county average during that period closer to 2.5 percent, but not everybody sold at a discount because 11 of the 29 sales sold for at or above the asking price.

Arlington has so few homes with in-ground pools, that we have to look to Fairfax County to gather some meaningful data:

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During this time, detached homes spent an average of about 60 days on market and sold for about 97.5 percent of their original asking price.

As you can see from the table above, it took nearly 40 percent longer to sell a home with an in-ground pool and buyers negotiated an average of 3 percent more off of the original asking price. This supports the idea that most buyers in Northern Virginia don’t want a pool, but the lack of available inventory in Arlington offsets that and can be turned into a positive for sellers.

Take Notes From Fairfax, Timing Matters

The above table for Fairfax County also highlights that if you’re going to sell a home with a pool, you should do so within the spring market so your buyer has the immediate satisfaction of using it for a full season after they purchase.

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Impact Of Condo Fees On Resale

Question: I live in a building with above average condo fees and am wondering what impact the condo fees will have when I decide to sell?

Answer:

On Average

The average condo fee for a one bedroom apartment in Arlington is $397/month and $530/month for a two bedroom unit. On average, owners pay 50 cents per square foot they own. Looking at my favorite sales indicators, days on market and sold price to original ask ratio, there is a direct correlation between higher condo fees and the number of days on market, as well as between higher condo fees and greater buyer discounts from the original asking price (see first and second data tables below).

Pricing Around Fees

When pricing your condo, you must factor in the monthly fees compared to condos in similar communities.  Since buyers manage their total monthly payment, along with the total sale price, consider that on a 30 year mortgage with a 4 percent interest rate, increasing the mortgage by $21,000 increasing the monthly payment by $100. Thus, as a simple rule of thumb, for every $100/month difference in condo fees on a comparable unit, there should be an adjustment of about $20,000 in market value.

Data Summaries

There’s a lot of important information hidden behind data on condo fees like building services/amenities and the inclusion or exclusion of utilities and/or cable and internet, but the data on condo fees in Arlington is valuable nonetheless.

The following data summary represents apartment-style condo sales in Arlington over the last four years, broken down by condo fee ranges. Of note is that as the fee and fee per square foot increases, so does the time it takes to sell and percentage discount buyers negotiate of the asking price.

Note that of the $1,000+ fee sales, one third are from Turnberry Tower, Arlington’s premier luxury building, and another 15 percent are from Crystal Gateway, a building with expansive floor plans and the largest amenity package of any community in Arlington.

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The following table is a cross section of the above data set, limited to sales that closed from $250,000 to $500,000, thus presenting the data within a more comparable sub-market.

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How much does a building’s age impact the condo fees?

Most people would say that older buildings have higher condo fees because they have higher maintenance and replacement costs. Let’s take a look at the data for one and two bedrooms sales, by the decade it the community was built.

Of note is that the buildings from the 1950s and earlier have the most limited (or non-existent) amenities and there seems to be a jump in fees per square foot in buildings as they reach the 20 year mark, but leveling off after that, in-line with my expectations because most major systems require expensive repairs or replacement around the 20-30 year mark.

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In order to truly understand the impact of condo fees on your condo, it’s necessary to drill down a few more levels within your specific sub-market(s). If you’re interested in exploring condo fee data for your unit, feel free to email me at Eli@EliResidential.comand I’d be happy to provide you with a more customized data summary.

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What It Means To Sell ‘As-Is’

Question: This is in response to recent comments on my columns about what it means to sell “as-is.”

Answer: Selling a property “as-is” in Northern Virginia carries a technical definition as stated in the contract and an intended purpose that should be discussed between the buyer and seller.

Technical/Contractual Definition

In Northern Virginia’s Contingencies/Clauses Addendum you’ll find a section for selling “as-is” which contains the following terms that can be individually selected for the contract:

  • Seller will not clean or remove debris. The standard is for the property to be free of trash/debris and broom clean.
  • The seller is not responsible for addressing any wood destroying insect/termite issues. The standard agreement requires the seller to pay for any damage from wood destroying insects.
  • The seller is not required to fix any Homeowners Association violations related to the physical condition of the property.
  • The seller is not responsible for providing working smoke detectors.
  • The seller is not responsible for compliance with notices of violation from local authorities.

Implied Definition

When you market a property as-is, you are implying that you will not negotiate with the buyer to fix anything and the buyer should be prepared to take on the full risk of the property in its current condition. Generally, this means a buyer will agree to take the property in the condition it is in at the time of offer and that the contract is not contingent on a home inspection (buyer withdraws the right to negotiate or void based on home inspection results).

However, you may consider accepting a short pass/fail inspection contingency whereby the buyer does not have a right to negotiate credits or fixes, but does have the right to void the contract if they find any major problems with the home during the inspection.

Who Uses As-Is?

It is common to see estate sales and homes that will be the targeted by investors (tear downs or flips) being sold as-is. In the case of many estate sales, the family member(s) who inherited the property may not live nearby, know anything about the condition of its systems, or want to be bothered by negotiations after a deal has been made. It doesn’t necessarily mean the property has problems.

Understand Your Choice

As a seller, you want to make sure you understand the message you’re sending and buyers you’re targeting when you market a home as-is. You also need to be realistic about how this will impact the sale price (discounted). As a buyer, you want to make sure you understand why a home is being sold as-is, what the seller’s contractual and implied expectations are, and be prepared to handle the risks associated with buying as-is.

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Aurora Highlands Neighborhood Spotlight

Where is it? Most people would consider Aurora Highlands to be Crystal City and Pentagon City because to the north, it contains the Pentagon City mall, borders S. Eads Street to the east, Virginia Highlands Park/S. Joyce Street to the west, and the southern tip of Arlington along S. Glebe Road to the south.

It’s a diverse neighborhood with everything from large apartment buildings to residential streets lined with cape cods and brand new Craftsman homes, mixed in with the mall, office space, dining and retail.

Unlike most neighborhoods with single family homes, Aurora Highlands has easy access to two Metro stations and you can’t live closer to Reagan National Airport! Students living in Aurora Highlands attend Oakridge Elementary, Gunston Middle and Wakefield High Schools.

About the interviewee: Lisa Curtin moved from the Chicago suburbs to her apartment at Crystal House in 2015 when she was relocated for her career in Student Tourism. Shortly after the move, she became the COO of an Accounting firm in Bethesda, but loves the neighborhood so much that she’d rather commute every day to Bethesda than move closer to work.

She picked Crystal House because she’d never lived in a city before, loved the larger, renovated apartments, and was located close to the Crystal City Underground. Lisa is strongly considering buying nearby once she’s done renting.

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What do you love about Aurora Highlands?

Where do I start? The accessibility to the Metro and major roads for commuting and going out couldn’t be better; we’re a few quick stops to downtown D.C. Within a few blocks there are parks, family-owned bars and restaurants, shopping and trails.

Where do you shop, eat, and hang out?

I love Tortoise & Hare (have to try the loaded tater tots), Crystal City Sports Pub and Freddie’s Beach Bar. I do most of my grocery shopping at the Harris Teeter or Aldi and work out at the new Orange Theory.

I also walk on the Four Mile Run and Mount Vernon Trails, and hang out at Long Branch Park when the weather is nice. I suggest everybody check out Fridays at the Foundation(pictured), if they haven’t already.

Do you have any experience with the school system?

I don’t personally, but my neighbors considered sending their kids to private school and decided to stick with the local public schools and are very happy with their experience at Oakridge Elementary School. They intend for their kids to use the public school system serving our neighborhood through high school!

What sort of identity does Aurora Highlands have?

I don’t think most people understand that Aurora Highlands is its own neighborhood, adjacent to Crystal City and Pentagon City, so we’re doing a lot to identify ourselves with new signage and a strong Civic Association. It’s such a unique pocket of Arlington because it has traditional single family neighborhoods alongside condos, apartments, office space and retail.

It gives the neighborhood a vibrancy that’s hard to match and there’s a great mood walking around because people take care of themselves and the community. You get all of these city-like benefits but at a much more affordable price than other parts of Arlington and D.C.

Thank you so much for your interview Lisa! I’m sure this will help people considering a move into or within Arlington who are looking for the type of community you described.

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New Construction vs. Resale Price Comparison

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New Construction vs. Resale Price Comparison

Question: We are ready to move into a house we’ll raise our family in and are set on Arlington. We want a newer home, but are not sure if it’s better to buy new construction or resale; our decision will ultimately be a financial one.

Can you put together numbers that show how the sale prices of new construction compare to resale?

Answer: Of course I can! When weighing the financial decision of new construction vs. resale, you’ll also want to consider the replacement cost of major systems like HVAC, windows, roof, water heater, appliances, etc. that carry life cycles of 10-30 years (appliances being on the early side, roof/windows coming later) as well as higher efficiency factors of new homes that significantly reduce utility costs. Many new homes also come with extended “bumper-to-bumper” warranties that you won’t get in resale.

As expected, there’s a clear premium to be paid for new construction and buyers tend to negotiate a deeper discount from the original asking price on homes being resold. The dataset is based on sales since January 1, 2014 for detached homes built since 2000 with 4-6 bedrooms, 3-5 bathrooms, and 3-4 levels.

 

Are these numbers in-line with what you expect to see on the difference in sold price between new construction and resale? Are the prices about what you assumed for new/newish homes by zip code?

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Clarendon Neighborhood Spotlight

Where is it? Clarendon is probably the most recognizable, well-known neighborhood in Arlington. Those outside of Arlington often refer to the entire Rosslyn-Ballston corridor as Clarendon.

Technically it is bound by Wilson Blvd to the north, 10th St N. to the south, Washington Blvd to the west, and N. Danville Street to the east (eastern border is based on the boundaries of the Clarendon Sector Plan).

Clarendon is known for its lively dining and retail scene, along with being host to a popular chains like an Apple Store and Whole Foods, where the parking line regularly overflows into the street.

From rooftop bars, numerous restaurants and high-end retail, Clarendon attracts people of all ages to its massive condo and apartment complexes, as well as droves of patrons from outside the neighborhood. Depending on your preference for entertainment, it’s either the place to be or the place to avoid on Saturday nights. The neighborhood is built around the Clarendon Metro station, which is located on the Orange and Silver lines.

About the interviewee: Tim Donaldson moved to Clarendon in 2014 after spending eight years in Los Angeles, and chose the area because it provides the walkability of a city, but he can hop in his truck any time and quickly be on the highway, which he can’t do from D.C.

He started as a renter in The Phoenix, a popular condo building at 1020 N. Highland Street, and loved it enough to buy a two-bedroom condo after one year. He loves the amenities, and chose to buy because of how well run it is due to the long tenure of its staff.

What do you love about Clarendon?

I love the balance of being able to walk to everything, but not having to fight through city traffic to get to a highway, which I do often for work and to fish. It’s a big city lifestyle, but more laid back. You also have the convenience and familiarity of successful chains like Whole Foods, Starbucks, Cheesecake Factory and Lululemon, but also some great non-chain places for music and craft beer/wine. I’m sad the record store closed!

Where do you shop, eat, and hang out?

My wife and I have a long list of favorites all within a few blocks. Green Pig Bistro is our date night spot, we’re regulars at Lyon Hall, I go to Fireworks for their great beer menu, Galaxy Hut for awesome music, Ambar’s all-you-can-eat is the best deal around, Texas Jacks BBQ is second to none (I agree), love the classics like Liberty Tavern and Bonchon, and the new Spirit of 76 is a cool, cozy bar! We love being able to walk to Whole Foods or Trader Joes for groceries.

Do you take advantage of nearby parks and trails?

I take weekly walks at Potomac Overlook and Zachary Taylor parks and love biking the WO&D, Four Mile Run, and Mount Vernon trails. I know there are parks closer by, but I love hiking and biking those areas.

How has your overall experience been in Clarendon?

Very positive! I’d love to be able to buy a single-family home in Lyon Park (adjacent neighborhood) so I can stay close to Clarendon. People mostly associate Clarendon with weekend partying, but it’s an incredible community with an art show, crafts fair, and bike race during the year. Most of the businesses put out water bowls for dogs in the summer and there’s always families out pushing kids in strollers, which gives the whole neighborhood a feel of closeness that I love being part of.

Thank you so much for your interview Tim! I’m sure this will help people considering a move into or within Arlington who are looking for a vibrant, walkable community like you described.

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How Accurate Are Zillow Zestimates?

Question: How accurate and reliable are online home value estimates like Zestimates (Zillow) and Redfin Estimates? My neighbor used his Zestimate to determine the asking price of his home. Can I trust that number?

Answer: Online estimates, like Zestimates and Redfin Estimates, are similar to doing a Rough Order of Magnitude estimate on a project, meaning it’s a good way to quickly determine approximate value. I suggest that clients only trust Zestimates/Redfin Estimates within +/- 10 percent of the value it provides.

In fact, I think that it’s irresponsible for Zestimates and other online estimates to be listed so prominently on their respective sites without an obvious disclaimer (readers must click for a short disclaimer). The fact that it’s a single number, down to the dollar, not a range or rounded falsely suggests it is highly accurate.

Why It’s Wrong

Zestimates, Redfin Estimates and other online estimates rely on public information like square footage, lot size, number of bedrooms, year built, tax appraisal (inaccurate), etc. and past sales in the area, but have no way of knowing details that drive true market value like quality of lot, natural light exposure, curb appeal, and age of major systems like appliances, roof and windows.

These details are critical to determining the actual market value and cannot be priced in without a full inspection of the home and understanding of their influence on local sales. In fact, there’s currently a lawsuit filed against Zillow for inaccurate Zestimates.

Zillow Admits Inaccuracies, Worse In Arlington

Zillow itself acknowledges that its Zestimates are inaccurate, stating that it has a median error rate of 5 percent (I’m sure the average error rate is much higher), only 53.9 percent of estimates are within 5 percent of the sale price, and only 75.6 percent are within 10 percent of the sale price. These last two stats are probably median error rates, with even worse error rates if you look at averages.

Further, because they’re national stats, they benefit from the large number of communities around the country that are full of nearly identical homes. When housing inventory is homogenous and there’s little variation in pricing by neighborhood (common in much of the country, not in Arlington), it’s much easier for online estimates to be accurate. I’m sure that the margin of error in Arlington and Northern Virginia is worse than the national numbers.

Comparing Popular Online Estimates

Industry spends a lot of money developing these estimate tools, so let’s take a look at how some of the most popular sites for estimates compare to each other. I’ve chosen to compare estimates on a few randomly selected properties in different sub-markets from Zillow, Redfin, and REALTORS Property Resource (RPR, created by the National Association of REALTORS for agents).

Note: there’s less variation between estimates on properties recently sold (recent sale price factors heavily) and listed properties (asking price factors into estimate formulas). Estimates below are rounded to nearest $1,000.

Listed Properties:

  • Crystal City, condo: Zillow ($376,000), Redfin ($418,000), RPR ($395,000)
  • Fairlington/Shirlington, condo: Zillow ($384,000), Redfin ($429,000), RPR ($231,000)
  • Rosslyn-area, townhouse: Zillow ($957,000), Redfin ($818,000), RPR (unavailable)
  • Donaldson Run, single family home: Zillow ($1,063,000), Redfin ($1,175,000), RPR ($1,125,000)

Unlisted Property (no recent sale):

  • Lyon Village, single family home: Zillow ($3,465,000), Redfin ($1,821,000), RPR ($2,751,000)

How To Price Your Home

With unreliable estimates from online tools and limited or no access to data on sales from 12+ months, it’s difficult for homeowners or anybody without access to your home and historical data to accurately determine the market value of your home. I frequently start with sales dating back 5 years when I price a home in order to capture true market data and trends, as 6-12 months simply isn’t enough in most cases.

If you want historical data on comparable or neighborhood sales for your home or would like an opinion on the market value of your home, shoot me an email at Eli@EliResidential.com or give me a call at (703) 539-2529 and I’ll be happy to help.

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Arlington First-Half Real Estate Review

Question: How did Arlington real estate do in the first half of 2017?

Answer: Market indicators at the beginning of the year were very strong. Spring purchase activity picked up earlier than usual in 2017 and all services providers I spoke to (contractors, landscapers, lender, title companies, etc) all said business was thriving.

Now that we’ve made it through the first half of the year, let’s take a look at some key market indicators I like to use to determine how we’re doing relative to years past.

As usual, you’ll see some familiar customized stats from my previous posts:

  • Avg Net Close: This is sale price less any seller credits for the “true” sold price
  • Avg Discount from Org and Last List: One of my favorites — this is how much of a discount buyers negotiated from the original and last asking prices. A good indicator of who holds the most leverage in the market. 100% = buyer paid full price
  • Avg Days on Mrkt: How long it took for the seller to ratify a contract to sell, from the date they listed it for sale. A good indicator of the speed of the market and demand
  • Months of Supply (chart): Economists will say that a balanced market has six months of supply. Anything below favors sellers and anything above favors buyers

Highlights

  • Arlington real estate prices are noticeably higher in most market segments, except apartments/condos (and in zip codes dominated by condo sales) where prices continue to stagnate
  • Nearly all markets show signs of upward pressure on prices with lower days on market and smaller discounts from original and last asking price
  • Average net sold price of detached (single-family) homes is way up, which is influenced by more sales of expensive new construction and off-market sales of cheaper tear-downs not showing up in the stats. However, it’s primarily due the overall market for detached homes picking up, as seen by strong numbers in zip codes with few new construction sales

With that, I’ll let you smart folks dig into the two tables and one chart yourselves and draw your own conclusions. Feel free to reach out to discuss anything you’re seeing, ask for more granular data for your home/neighborhood, or for help interpreting the data.

Stats By Housing Type

 

Stats By Zip Code

 

Months Of Supply

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How Many Real Estate Agents Work In Arlington?

Question: I’m cheating a bit here and answering my own question this week. I come across so many agents representing buyers and sellers who I don’t recognize that I wanted to know just how many agents have handled a real estate transaction in Arlington over the last couple of years. So Eli, how many real estate agents are there operating in Arlington?

Answer: Like it or not, the residential real estate profession has one of the lowest barriers to entry of any industry. While there are a lot of great agents out there, dedicated to their profession and delivering real value to their clients, it’s easy for just about anybody with a couple of months to study and a few hundred dollars to represent you in a real estate transaction.

That’s why it’s important to ask your agent if they’re full-time or part-time, how much business they do, and about their professional background.

A Lot Of Agents

To answer my question, I pulled data on the last 5,000 transactions (totaling $3.2 billion in just under two years) in Arlington to find out how many agents were involved.

Remember that in each transaction there are usually two agents and for the sake of simplicity, if an agent represented both sides of a deal, they’re credited with two sales in these figures. Here’s a summary of what I found:

  • There were 3,139 total agents who worked on the last 5,000 transactions, with 2,287 different buyers agents and 1,904 different listing agents
  • 178, or 5.7 percent, of those agents closed ten or more of those deals
  • The 2,218 agents who closed one or two deals accounted for over $1.6 billion in sales or about 25 percent of sales volume (the $1.6B has to be divided by twice the $3.2 billion sales volume in Arlington to account for one agent on each side of the deal)
  • The top 1 percent of agents by total transactions accounted for just over $1 billion in sales or about 16 percent of sales volume
  • Only one agent represented over 100 buyers or 100 sellers (and you’ve probably seen her face on buses around the county)
  • Out of the agents who closed five or more deals, 46 of them averaged over $1 million per sale

Some Exceptions

Just because somebody has only done one or two deals in Arlington doesn’t mean they’re not a great agent, in fact, I see a number of solid agents on this list who I know from other markets in the D.C. metropolitan area. There’s also quite a few agents in the industry who transact simply for their own investments.

What Do You Think?

Given this information and the data points above, are you surprised at the number of agents operating in Arlington? Do you think having a low barrier to entry and minimal license maintenance requirements/costs is a good thing for the residential real estate industry or should it be more difficult and more expensive to operate as a licensed agent so that fewer agents are managing Arlington’s real estate market? Discuss!

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Cherrydale Neighborhood Spotlight

Where is it? Cherrydale is one of Arlington’s most sought-after neighborhoods, bounded by the intersection of Interstate 66 and Lee Highway to the east, N. Utah Street to the west, I-66 to the south, and Old Dominion Drive to the north, with an awkward configuration of boundaries just north of Old Dominion adding to it.

It is primarily served by Washington-Lee High School, with a small section north of Old Dominion districted to Yorktown High School. Cherrydale boasts a diverse housing selection, with a large number of single family homes dating back to the early 1900s mixed with homes from each decade, including new construction homes that have replaced smaller, aging homes.

In addition to single family homes, Cherrydale has some pockets of condos and townhomes. Most of Cherrydale is within a 15-minute walk of the Ballston or Virginia Square Metro stations.

About the interviewee: Jennifer Galloway and her husband moved to Cherrydale from a Ballston condo in 2016 to find community, more space and their target school district for their 10-month-old daughter. They moved into a beautifully renovated pop-up home that combined Jennifer’s love of older homes with her husband’s preference for new and were sold by the two beautiful magnolia trees in the backyard.

Hailing from Connecticut, Jennifer entered the D.C. scene working in politics and eventually leveraged her connections and fundraising experience to found the Wolcott Hill Group, a nonprofit consulting firm. Jennifer is a proud graduate of the 2016 Leadership Arlington cohort and 2016 “40 Under 40” winner.

What do you love about Cherrydale?

It’s such a close, supportive community. I think we’d met every one of our neighbors within the first month and everybody has been so helpful, which is invaluable for a young family like ours. We also love the generational mix in the community with everything from young families to retirees who have lived here for 40+ years.

My husband commutes into D.C. every day and I’m always going to appointments around the metropolitan area, so we both utilize the Metrobus system that runs through out the neighborhood and makes commuting easy.

Why did you move to Cherrydale?

We wanted to be in the Washington-Lee High School district and my husband needed a short commute into D.C., so we were focused on Cherrydale, Waverly Hills and Westover.

When we first started looking, we stopped by an open house in Cherrydale and ended up talking to the neighbor for a while. She told us they were considering a move, but loved the neighborhood so much that they invested in a major renovation/expansion of their home in order to stay in the neighborhood. That sold us.

What are some of your favorite places to go?

Our favorite restaurants are Cassats and Lebanese Taverna, which are both walkable. We spend a lot of time in nearby parks like Woodstock and Quincy Park and take walks along the Custis Trail. If you’ve never been to Arrow Wine, had pastries from Randolph’s, or empanadas from La Union Grocery, you have to go soon.

Are there any fun community events?

There’s a big July 4 block party every year at the top of N. Stafford Street with a George Washington impersonator who reads the Declaration of Independence. We also have an annual yard sale in the neighborhood that’s a lot of fun.

What do you think the next 10-15 years will bring for Cherrydale?

I’m sure we’ll continue seeing small, older homes replaced by larger new homes and a continuous flow of young families coming in. However, there are many families, like ours, who plan to raise their children in Cherrydale, so it will be exciting to see the community grow together over the years.

Thank you so much for your interview Jennifer! I’m sure this will help many families considering a move into or within Arlington who are looking for many of the same things your family wanted.

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How To Negotiate A Home Inspection

Question: I just finished the home inspection for a single-family home I’m purchasing in South Arlington and there are about 40 items on it. Should I be nervous and consider walking away from the deal? What’s reasonable to expect from the seller?

Answer: Before you freak out about the list of issues the inspector found, I will say that for an older single family home, the number of items the inspector listed in the report is within the normal range of what I see. Unless you’re buying a new home, you should expect the inspection to turn up at least a handful of items that you or the seller should address.

What Is A Home Inspection?

Shortly after ratifying (signed by both parties) a contract to purchase a home, most buyers will (read: should) hire a third party inspector to inspect the entire home and produce a report of any issues, from foundation cracks to missing door stops.

In most cases, the contract to purchase is contingent on the home inspection, meaning the buyer has the right to ask the seller to fix or replace anything and/or provide a cash credit to the buyer at closing. If the buyer and seller are unable to come to an agreement on these requests, the buyer has the right to void the deal.

What Should You Look For?

The goal of an inspection is to ensure that the seller is delivering the property in the condition both sides expected while negotiating the sale price. Generally, you can divide findings into big-ticket items that impact the value of the home and must be addressed and smaller punch-list items that shouldn’t cause much friction. The big-ticket items I look for during an inspection are:

  • Structural flaws
  • Water penetration
  • Safety hazards
  • Inoperability (e.g. air conditioning not working)

System Life Expectancy

You should also determine the age of major systems like the roof, windows, HVAC and water heater prior to making your offer, and verify these are accurate during the inspection. Make sure you’re clear on the expected life expectancy of these systems while you’re negotiating the sales price and factor this information into your offer.

You’ll have a tough time convincing most sellers they’re on the hook for crediting you the cost of a 17-year-old water heater if that information was made available prior to your offer, assuming the system is working.

What Should You Ask For?

As I mentioned earlier, you’ll generally be deciding between asking the seller to handle the fix or replacement of something or asking for them to provide a credit at closing. Often times an inspection agreement includes both – a credit for some items and a request to fix/replace others. Sellers must use licensed contractors and provide works receipts for any work they do.

In general, if something you’re asking for involves personal preference or you want to have control over the quality of the result, it’s best to ask for a credit and handle it yourself. For example, if the deck is falling apart and needs to be replaced, you don’t want the seller managing the design and construction of a new deck so ask for a credit for the replacement cost and make sure you’re getting the deck you want.

Additionally, if the A/C system needs to be replaced and the seller has a mid-grade system, but you’d like to install a top-of-the-line A/C system, it’s best to request a credit equal to the replacement cost for a comparable mid-grade system and invest in the extra cost of a nicer system yourself.

Inspections Don’t Need To Be Contentious

Inspections are one of the most common points of contention between buyers and sellers, but with the right preparation and expectations going in, it can be a smooth process that both sides are happy with.

Like the negotiations you had on the sale contract, the inspection period is also a negotiation. Buyers should expect sellers to address big-ticket items and smaller items that are not classified as improvements/updates.

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Buy An Old Home With Confidence

Question: I really like the architectural style of older homes and feel like I can get a better deal by focusing on homes built more than 30 years ago. Can you provide me some data showing the number of homes old by age and any suggestions you have for a buyer shopping for an older home?

Answer: I also have a personal preference for older homes and love working with clients who have a taste for unique architectural styles! With a bit of vision and a good checklist of things to watch out for, buying an older home can offer real value. To avoid having your dream home turn into a money pit or safety hazard, here are some things you can do prior to purchasing your home to protect yourself:

  • Double up your inspection: You should always have your home inspected by a reputable inspector, but nobody is perfect, so it’s a good investment to have two sets of professional eyes on the home to ensure maximum coverage.
  • Don’t forget your chimney: A general inspection doesn’t include a full chimney inspection and chimneys tend to be one of the least maintained parts of a home, especially if the previous owner didn’t use the fireplace. A damaged chimney can be unsafe and expensive to fix.
  • Check the structural integrity: Old homes have weathered many storms (literally) and the chances they’ve experienced water penetration at some point is high, especially if it sits in a low-lying area where the ground is likely to hold more water. Talk to your inspector about whether or not it makes sense to have a structural engineer do an in-depth study of the foundation and other structural elements of the home.
  • Electrical testing: There’s a good chance an older home has gone through multiple rounds of electrical updates through a few different owners. You never know if a previous owner was a self-proclaimed jack-of-all-trades who fancied themselves a public servant by day and electrician by night. For the sake of your family, make sure a professional gets behind the walls to make sure everything looks good (wiring is safe, home is properly grounded, etc).
  • Insulation: One of the biggest downsides to older homes is poor insulation, especially if they still have older windows and roofing. Check the home for cold/hot spots, proper insulation installation, and seals around doors and windows.
  • Termites or other wood-destroying insects: Termite/wood-destroying insect inspections are very cheap and worth every penny. In Northern Virginia, sellers are responsible for repairing any termite damage.
  • Lead testing: In addition to testing for lead paint, you may consider testing your water for elevated levels of lead due to leaching from lead pipes or lead soldering, which wasn’t banned in the US until 1986.

Let’s take a quick look at the age of single-family homes sold in Arlington, by decade, from 2012-2016:

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Yes, You Should Stage Your Home

Question: We are planning to sell our home and wondering if the cost of professional staging is worth it. What’s your opinion on staging and are there certain circumstances where you do or do not recommend it?

Answer: I recommend staging for almost every home I sell because it will increase your sale price by more than you spend and help your home sell faster. In fact, it makes such a difference that clients often joke after seeing their decluttered and staged home that they’re considering moving back in!

What Is Staging?

Professional staging is a service used to improve the marketability of a home by arranging rented furniture in certain rooms of a home to maximize the space and visual appeal. Most staging professionals have an interior design background and a large supply of furniture to work with.

Staging is mostly done when a home is vacant, but for sellers occupying the home they’re living in, stagers will also provide consultations on how to best utilize your existing furniture and make suggestions on small add-on items to enhance a space (area rugs, towels, flowers, wall art, etc).

How Much $$$?

Condos can usually be staged for $1,500-$2,500 and townhomes and single family homes generally cost $2,500-$4,000 depending on the number of rooms you stage and quality of furnishings. For high-end real estate, expect to spend $5,000-$10,000. You should plan on spending 0.5-1 percent of your asking price on staging a vacant home.

What Are The Advantages?

  • Better pictures = more interest online = more showing traffic
  • Significantly better showing experience for buyers
  • Empty space looks smaller, staging helps visually increase the size of a room
  • Buyers struggle to visualize how beds, couches, tables, etc will fit
  • Awkward spaces benefit from the design of a professional
  • Clean, organized look increases the sense of a well-maintained home
  • Play to the strengths of a room and distract from its flaws

When Should You Stage?

  • Move-in-ready condition (limited updates/investment required)
  • Vacant
  • Home has been thoroughly cleaned and freshened up as necessary (paint, replace damaged/ancient items, etc)
  • Using professional photography

Where’s The Proof?

You may see staging companies or agents make claims that staged properties return an “X” percent higher sale price or sell “X” days faster than unstaged properties, but the reality is these numbers are just convenient marketing figures with no real substance.

One of the challenges with statements like these in real estate is that you don’t have the ability to isolate something like staging and compare the success or failure of the same home sale with and without it. You have to rely on the experience of your agent to help with decisions like these.

My experience with staging comes from seeing the impact it has on homes I sell, but even more so, how buyers I work with react. There is a noticeable difference in how buyers react to staged homes versus empty or cluttered homes (lived in without regard for design) and this shows up in their preferences when they’re viewing properties online to decide what they want to see and then again when they’re actually in the property.

I generally take an opportunity to point this out to my clients so they understand how much of an impact staging has on their perception of a home, so they keep it in mind when it comes time for them to sell.

I’m Here To Help

If you’re considering selling and trying to decide which investments like staging, painting, and updated appliances will return more than they cost, feel free to reach out to set-up time for me to see your home and make some suggestions.

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Using Square Footage in Real Estate

Question: Square footage seems randomly reported on different websites. Why is that and what is it supposed to include? Is the math on $/sqft the same across all sizes or is there a diminishing return at a certain point where more square footage doesn’t translate into more value?

Answer: Total square footage, above grade square footage, and $/sqft are some of the most common criteria and valuation metrics used in real estate, but square footage is also one of the most inconsistent data points we have. For purposes of this column, I will talk in terms of finished square footage used in real estate sales. County appraisers include unfinished space (e.g. storage, garage, decks) at a discounted rated in their tax assessment calculations.

How Is Square Footage Calculated?

I haven’t come across a published definition of how Arlington calculates finished/livable square footage, but in speaking with county tax appraisers it’s considered interior space with finished flooring and walls, and part of the home’s heating and cooling systems. I believe ceiling height (minimum 7 feet) is a factor as well. It does not include garages, decks, attics, or raw storage. It does include closets and bathrooms that are part of finished areas of the home.

Square footage is measured from the framing or exterior walls, so often times the County’s square footage is higher than the usable square footage inside the finished walls of a home.

What Do Most Websites Use?

MRIS, which is the database of record used by REALTORS and where most consumer-facing websites pull data, contains a few fields for square footage.

Taxable Living Area: Pulled from the tax record for above-grade (above ground) finished square footage. It’s a bit of a misnomer because it does not include taxable living space in the lower level(s) of a home.

Above/Below Grade Finished: This is an optional field entered by the Agent to calculate total square footage

Above/Below Grade Unfinished: This is an option field entered by the Agent and does not impact total square footage

Total Finished: Sum of above and below grade finished square footage, if entered by Agent

In my experience, most consumer-facing websites will use the total finished square footage if it’s available and default to the above-grade square footage from the tax record if it is not. Zillow seems to do the best job of pulling from multiple public data sources to get total square footage, even if the Agent hasn’t entered it into MRIS. On the other hand, Zillow allows homeowners and Agents to edit this data. Most square footage readings entered into MRIS by Agents are based on measurements between finished walls, not from the framing.

Common Data Problems

Be careful using square footage to define search criteria or for home valuations because the data can be flawed. Here are some common issues I run into:

Total square footage not entered: If an Agent doesn’t enter data for above and/or below grade finished square footage, the total square footage field is a null value.

New homes: In most cases new construction has a taxable living area in MRIS (from tax record) of zero or if it was a tear-down, it likely has the square footage of the original home which is generally much smaller.

Split Levels/Foyers: Split Levels and Split Foyers were a common design in the 1960s-1980s and usually about half of the total square footage of the home is considered lower level or below grade. In most cases, the square footage number pulled by MRIS from the tax record is only the upper level and thus only about half of the total size is automatically listed.

Additions: If a home has an unpermitted addition or the tax record was never updated, the MRIS taxable square footage will be low and unless the total square footage was entered, the extra space won’t show up.

Condos and townhomes are generally much more reliable when using square footage as a criteria/valuation factor than single family homes.

Price per Square Foot To Compare Values

$/sqft can be an effective valuation tool when you’re assured that the square footage values you’re using in your calculations are accurate and when you’re comparing properties of similar size.  For example, a 600sqft condo selling for $350,000 is nearly $600/sqft while a $2 million single family home with 6,500sqft is just over $300/sqft. Most condos trade in the $400-$700/sqft range and most single family homes trade in the $200s.

I generally avoid using $/sqft when valuing single family homes because the prevalence of inconsistent data introduces too much risk. However, $/sqft can be an effective valuation tool for condos and townhomes, especially when comparing values within the same community where fees and square footage measurements are consistent across each unit.

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Do ‘Smart’ Homes Mean A Higher Sale Price?

Question: We want to upgrade our home with ‘smart’ technology but aren’t sure if it makes sense since we plan to sell our home in about a year. We’d feel better about doing so if it will increase the value of our home. Will these updates get us a higher price when it’s time to sell?

Answer: I see hundreds of homes each year and I’ve noticed only a slight increase in Arlington owners and renters using smart home devices. While supply is low for homes equipped with automated technology, evidence and buyer feedback points to increased interest in these homes and a slight bump in sale price, too.

What makes a home smart?

A smart home integrates three or more Internet of Things devices to solve daily tasks through automation, often working interdependently to complete them without human assistance. These devices are usually wirelessly connected to automate, control and monitor home functions like adjusting the temperature, grilling food, warming a mattress, dimming and turning off lights, checking on a video feed of your sleeping baby and feeding your pet.

Are buyers interested in smart technology in the home?

A recent Gartner survey of consumers in the U.S., the U.K. and Australia shows 10 percent of households take advantage of connected home solutions. Reasons for the lower adoption are varied: the perceived pain of the tech learning curve, the steady influx of new devices, and IoT privacy and security concerns.

In the US, adoption rates are higher:

By far the most popular devices are home security alarm systems, which have nearly double the adoption rates (18 percent) of newer connected home solutions, like home monitoring (11 percent), home automation or energy management (9 percent)… adoption rates were 5 to 6 percent higher in the U.S., where smart home devices were mostly first marketed.

You might think that smart homes are primarily valued by Millennials, but researchers are finding that home automation broadly appeals to Millennials, Gen-Xers and Baby Boomers, with Gen Xers spending the most money.

Will A Smart Home Technology Investment Pay Off When It’s Time to Sell?

I have a similar answer to this question as I do with a number of other home improvement projects. Yes, a smart home investment is likely to improve value, but it’s unlikely to return you 100 percent or more of your investment. Your decision to purchase smart home technology should factor both a bump in resale value and the personal value it brings to your family while you live there.

The type of smart home technology you choose will matter too. Selecting popular products like lights, thermostats, door lock, security systems, and cameras can be highlighted during showings and are generally pretty easy to control, which result in positive buyer reactions. However, I’ve visited a few homes with complex designs and unusual products, which ended up deterring my clients because of the presumed headache and cost of maintaining the system.

Thinking about renting out your property?

Renters are very interested in smart homes and I think this is one of the best ways for home-owners to compete for renters with higher end rental apartments. Millennial renters who live in multi-family dwellings were surveyed last fall about housing preferences. Eighty-six percent would pay more for a “smart” rental.  Sixty-five percent of Baby Boomers in the same survey indicated they would do the same. Furthermore, it was revealed that Millennial renters would pay about 20 percent more for smart home features; and 44 percent would trade a parking space to live in a “high-tech” apartment.

Has Smart Home Technology Influenced Your Purchase?

I’d like to hear from readers who have either been drawn to or turned away from a home with a smart technology package. If you’ve been a buyer in recent years and smart technology was a factor in your decision, I’d like to hear about it in the comments!

If you’re interested in seeing a smart home in action, I recently took a tour of the Alarm.com demonstration house in Falls Church, just off W. Broad Street. Send me an email if you’re interested in seeing the home and I can put you in touch with somebody from the team.

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