Investment Property to Save and Pay for College (vs 529 Account)

Question: Is it more effective to save for my kids’ college through a rental property investment or a more typical college savings plan like a 529?

Answer: I often hear from parents who purchase a small investment property around the birth of their child as the primary savings vehicle for college. Some people swear by it. I did it when my son was born (and will report back with results in 13 years!).

I reached out to my financial advisor, Erik Fischer CFP, RICP of Taylor Financial (erik@taylorfinancial.com, (727) 417-3400), about the topic and he offered a very detailed, thoughtful comparative breakdown of using a real estate investment as a college savings tool vs a more traditional 529. Erik is an excellent resource if you have additional questions about this topic or other financial savings topics.

With frequency, this question arises from parents who gravitate towards real estate investing.  And, there is not a definitive answer. Ok – column over.  Just kidding.  While it’s true that there is not a definitive answer, depending on your situation the answer may be definitive for you.

Identifying the parameters:

  • First, establish a target – how much wealth do you want to save to pay for college?
  • Then, consider the following key areas when comparing the two investment vehicles
    • Savings strategy –how will you fund your savings vehicle
    • Flexibility
    • Level of involvement
    • Associated risks
    • Expected growth rate
    • Tax implications

Establish your target: 

The good news here is that your target will likely be the same regardless of which approach you choose.  So here is an easy-to-follow framework of how to establish your target.

  1. Identify the amount you would like to have accumulated for each child when they reach college.  You can research the “Cost of Attendance” (*important* this is your all-in cost, not just tuition) at http://www.collegeboard.org. 
  2. Use the current cost of attendance for a school and inflate that amount to future dollars using an inflation rate of 5%.  Inflate this number out until your child is likely to graduate college.
    1. Why 5%?  This is somewhat arbitrary, but over the last 20 years college costs have been doubling or more the long-term average inflation rate of 2-3%.  I encourage you to use a number somewhere from 5-8%.
  3. Take the last 4 years of inflation adjusted costs and add them up.  These numbers represent a ballpark of what you could expect to pay for this child.  Is it perfect? Of course not, but it will give you a greater level of visibility into what you will need.

Establish your target (example):

Let’s say your child was just born, plans are to attend college in 18 years, graduate in 4 years.  At UVA, in-state cost of attendance for families making over $110,000 per year is $29,877 (tuition represents roughly half of this number).  If you adjust for inflation and add up 4 years of all-in cost, you arrive at an aggregate number that includes the annual timeline of cashflows.  See table below:

These calculations will vary whether you plan for in-state vs out-of-state, public or private, and how much of the cost you are willing to fund.  Regardless, the framework will remain the same or very similar to arrive at some accumulation target.

You have your target, now what’s the best way to get there: 

Let’s compare a 529 based approach to a rental property-based approach.  Of course, these are not the only two ways to save for college, but we’re focusing on these two today.

Let’s first look at the rental property approach: the high-level idea is buying a rental property when a child is born and selling it to fund college when the child is college-ready.

Because of the increased complexity of rental real estate (which is not inherently good or bad, it just is), let’s identify some of the important considerations first:

  • Down payment will be required
  • Management / execution risk
    • cash flow planning
    • property management
    • tenant management
    • increased tax planning
    • increased insurance planning
    • financing considerations (if you will require a mortgage)
    • a plan to sell the property (to fund college)

So, you may have picked up here another hint at what the answer might be for you depending on your situation.  That is, if you do not have the cash on hand to make a reasonable down payment for the type of property you desire, the rental property might be off table for you, at which point you might lean on an annual savings approach of a 529.

Rental property example:

Rental strategies come in all shapes and sizes, but let’s say that we have $50,000 available to fund this strategy and we use that to purchase a property with the following facts:

  • 20% down payment, leaving $10,000 left over as a sinking fund to close the deal and maintain the property.
  • Purchase price $200,000
  • Mortgage rate of 6%
  • Cash flow neutral over the course of the 10 years (perhaps negative in the first few years, and positive in the last few years due to rent inflation and fixed mortgage), with annual profits years 11-18 of $5,000 that you let accumulate in a bank account that generates some interest
  • Property appreciates at 3% annually
  • Sell the property in your child’s senior year of high school and pay off the remaining mortgage.
  • Keep the rest in cash to pay for school, or in a high yields savings or CD ladder to time payments over 4 years.  The point is, you’ll have all your cash going into freshman year and you’ll keep it invested safely while they are in college.

Here is the formula with accompanying visuals below:  determine growth of underlying asset, then sell after 18 years, subtract 5.5% of sale price (commissions, closing costs, etc.), eliminate the debt, add back in the cash from your rental property bank account.  Once you have done all this, you are left with unencumbered cash that you can use to pay for college (pay it all to a college…lovely, right?)

$340,487 x 94.5% = $321,760

$321,760 of take-home transaction, minus the outstanding debt of $94,493 = $227,267

Plus $45,000 in cash that has accumulated in your rental property bank account = $272,267*

*The final available balance will likely be lower due to a capital gains tax, but the tax charge is highly variable based on factors like future tax code, final cost basis, tax management during property ownership, and other personal financial considerations at the time of sale.

We are now very close to our target.  Also, it’s very important to identify the many factors that can be quantified with deeper analysis, but by nature are less tangible.  Let’s list them:

  1. Advantages
    1. Tax advantages along the way with depreciation, deductible expenses, and favorable tax rates (capital gains rates) on sale
    2. Opportunity to develop skills and expertise in real estate
    3. Flexibility that you are not required to use the asset for college if you are able to pay for or end up choosing to pay for college in some other way – this is a big one.
    4. Potential for upside return
    5. Potential to be integrated with planning for your own retirement
  2. Disadvantages
    1. Level of management extremely cumbersome compared to a 529
    2. Execution / management risk can significantly impact total returns.
    3. Increased liability 
    4. Market risk
    5. Typically, you will need a significant amount of cash upfront to make the down payment

Carefully examine these attributes, because one or some of them might be deal-makers or deal-breakers for you.

Now, let’s compare the rental property strategy to the typical/default college savings account, a 529. This is simple, add an initial lump sum, or deposit annually.

529 – Annual Deposits equaling $500 per month for 18 years

529 – Lump Sum with the same $50,000 that was used for the rental property

The tables above represent the hard numbers that move you much closer to your ideal target. Helpful.  Now, there are also many factors that can be quantified with deeper analysis, but by nature are less tangible.  Let’s identify them:

  1. Advantages
    1. Tax-free growth, and tax-free distributions if used for qualifying educational expenses.
      1. This is the big one, it’s the main differentiator of the 529 from any other account type.
    2. Automatic – set it and forget it
    3. Can be transferred to other qualifying relatives if needed for their education
    4. Potential for stock-market returns
    5. Based on the new Secure Act 2.0 law, part of the plan may be eligible to convert to a Roth IRA for the beneficiary if certain criteria are met
  2. Disadvantages
    1. Tax benefits are lost if not used for qualifying educational expenses
    2. 10% penalty on earnings if not used for qualifying educational expenses
    3. Market risk
    4. Lack of flexibility to use the money for any other reason, due to a & b above
    5. Lack of liquidity, use and control for any reason other than college
    6. Cannot be integrated with planning for your own retirement

Carefully examine these attributes, because one or some of them might be deal-makers or deal-breakers for your own situation.

Comparing the two: 

How do we put this all together?  From a wealth accumulation perspective, in these examples, the rental property strategy wins, and it beats the lump sum deposit into a 529 by a significant amount.

However, this is only one example.  If we ran 100 examples for each, we would get 100 different results for each. Yes?  You could get a 10% return in the 529, or a 6% return. Your rental property could cash flow negatively in all years, or positive in all years.  You could get a great deal, or a bad deal.  You could refinance if interest rates lower and capture significant savings.  You could have an extended vacancy. Maybe the asset only grows by 2% instead of 3%.  There will be a ton of variability.

Distill the factors that will influence the results for you:

  • Rental strategy
    • Purchase price of the home
    • The plan to sell the home
    • Ability to manage the cash flow of a property, maintain it, and sell it properly / advantageously
    • Ability to execute proper tax planning along the way
    • Ability to manage tenants
  • 529
    • If you deposit a lump sum, at what point in the market cycle did you get started – during a bull market?  During a bear market?  Unfortunately, this is somewhat out of your control, but it makes a big difference in final results
    • Investment selection – did you create an appropriate portfolio within the account
    • Behavioral finance – did you try to time the market, chase a rate of return, or avoid a market drawdown?  As you can tell by the wording, none of those tend to be in your financial interests.

What’s the bottom-line(s):  

  • Don’t just focus on the surface-level math, but dig deep into the variables that impact your personal strategy (including non-financial)
  • While real estate in this example, and many others, may produce a higher college savings balance, it comes with a lot more work and requires a large lump sum payment up-front
  • Research and seek out the expertise you need to execute both options efficiently

Thank you very much for your detailed analysis, Erik. I have benefitted from Erik’s financial guidance for many years and would encourage anybody with questions about college savings or other financial planning decisions to reach out to him at erik@taylorfinancial.com.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Construction Underway on 40 New Toll Brother Homes

Question: Do you have any information on when the Toll Brothers community in Dominion Hills will be for sale?

Answer: Construction is underway on Toll Brothers upcoming 9.5 acre community, The Grove at Dominion Hills, a massive (by Arlington/inside-the-beltway standards) development of 40 brand new detached homes that will start around $2M, formerly the site of the historically significant Febrey-Lothrop property.

As of Monday, March 13 they were fully framed and under-roof on their model and one of their “quick-move-in” homes, with a third in foundation, and a fourth getting ready for foundation; all along the existing N Madison St.

What I Know/Expect

Toll Brothers is as tight-lipped as it comes about new developments until their official public releases, but here’s what I know/expect:

  • The community will include 40 new single-family homes
  • Lot sizes will clock in around 60ft wide and about 8,000 SqFt (just over 1/6th of an acre), which is about 5% smaller than the average Arlington lot and about 10% bigger than the median Arlington lot (as we know from this column on Arlington lot sizes)
  • I expect home sizes to range from about 3,500-5,500 total finished square feet depending on lot dimensions and options
  • I expect most or all homes to include a two-car garage with either basement and main level entry depending on lot topography
  • Toll Brothers will offer a combination of “quick move-in” homes with pre-selected options/finishes and semi-custom homes that allow buyers to choose from a pre-determined selection of elevations (exterior design), floor plans, options, and finishes
Site Plan from the Dominion Hills Civic Association website

Details and Sales Opening Expected 2023

Toll Brothers is careful to not release pricing, floor plans, or most details about a project until their chosen public release date which is currently projected to occur in late summer 2023. Details will get released for the first time on their website with a community webpage. Sales are currently projected to start at the end of 2023, but that timing could easily move up or back depending on market conditions and work progress.

Toll Brothers determine their sales process based on market conditions and you can expect a multi-phased release, with prices increasing with each release (standard practice for new communities). Toll Brothers often use a combination of option incentives and preferred lender incentives to drive demand, which smaller builders do not offer.

In my experience, they usually implement an appointment system on a first-come, first serve/meet basis. Those who register online for an appointment first, can schedule the first appointments with a sales rep and have the chance to lock in lots early so interested buyers should go into those meetings prepared to put down a deposit.

Recently, and controversially, Toll Brothers implemented a blind auction system for lots at Arden, their luxury community in Great Falls. They set a starting price for a lot and had buyers submit forms stating how much they were willing to pay for the lot and what they wanted to build on it then chose the winner (presumably based on the highest lot bid).

If you’re an interested buyer, take advantage of the time between the public information release and the sales opening to learn as much about the community as possible, figure out what lots you prefer (note that the best lots usually come with a steep lot premium), compare your options with Toll Brothers to other new build opportunities, and be ready to make a decision with a lot-hold deposit at your first appointment.

What Will the Homes Looks Like?

In my opinion, Toll Brothers has some of the best-looking homes (exterior and interior) and smartest floor plans of any of the national/regional builders. I often reference their plans, options, and designs for inspiration on local new build projects.

Each of their communities gets a unique set of elevations (exterior design), plans, options, and selections to fit the local community, price point, lot dimensions, etc so we won’t know what we’re getting at The Grove at Dominion Hills until they release the community website, but I did my best to give interested buyers an idea…

The following image is posted in a Dominion Hills Civic Association article about the community, and I assume it was provided to them by Toll Brothers during a community meeting. The Randolph model looks to be a clear match to one of the two homes currently framed and under-roof that I took photos of above.

Local communities that may have a similar design aesthetic to The Grove:

While the above communities may have a similar design aesthetic, they are all being built on sites with much larger lot sizes so you’ll get wider homes with different floor plans. I searched nationally for other Toll Brothers sites that have smaller, more narrow lots like we’ll see at The Grove to try to find some examples of what the floor plans might look like:

How Will The Grove Impact the Market?

There’s no way to overstate the scale of this development in Arlington and the surrounding communities given how unusual it is to even see a development of 2-3 detached in Arlington, let alone 40. For reference, there have been 79 new construction homes sold (per MLS) for $1.9M-$2.5M in Arlington since Jan 2021 (26+ months). I will provide more in-depth analysis on this once more information is released by Toll Brothers later this year.

If you are interested in buying a home in The Grove or other new construction homes in the area, you can reach me at Eli@EliResidential.com or on my cell at (703) 539-2529.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Did DC Real Estate Prices Just Crash?

Question: I found data that shows housing prices in DC are back down to the 2018 levels but anecdotal evidence suggests they are not. Can you explain whether the data I found is accurate or something is off?

Answer: The median price ($545,500) for homes sold in January ’23 in Washington DC showed a 15.4% year-over-year drop and was the lowest median price for any month going back to January ’19.

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Did DC Lose Four Years of Appreciation?

Given the economic and real estate climate since this summer, with endless headlines about market corrections, it would be easy to interpret the latest DC median price data as proof that the bottom is falling out of the real estate market. Unfortunately for our bear-market prognosticators, or those waiting for a market crash to buy property, the chart above is misleading and not representative of the actual market.

The drop in median price is due to an unusual data set and does not mean that real property values have fallen 15.4% year-over-year and/or lost four years of appreciation.

How The Data Steers Us Wrong

Real estate data can be tricky to use correctly (aka draw accurate conclusions) so if you want to make data-driven decisions, make sure you are leveraging the right data and working with somebody who understands the strengths and weaknesses of real estate data in your local market. Here’s why the January median Washington DC pricing data steers us wrong…

Timing: Pricing data lags by about 30-60 days, meaning the pricing data published in January is mostly made up of contract activity in November/December and is thus an indication of what happened in the market, not what is happening in the market. November and December are traditionally the slowest months of the year, with the least demand and lowest volume of homes being listed for sale. Sellers during this time of year also tend to be under more pressure to sell.

Combine that with the market deceleration in the 2nd half of the year due to rapidly rising interest rates and it made for an unusually slow real estate holiday season.

By the time the January pricing data was published in early February, market demand had already picked up significantly.

Sales Volume: Only 352 homes sold in DC in January compared to the 10-year monthly average of 718. Other than December ’22 (432 sales), no other month for the past 10+ years had registered under 450 sales and only five months registered less than 500 sales.

The unusually low sales volume means that the median price data can be skewed by unusual balances of less (or more) expensive homes in a given month, which is why most January pricing data comes in much lower than other months and why January ’23 was such an extreme version of that scenario. 

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There were just 46 single-family homes in the January data. As you can see from the chart below that shows the number of sales by price points, the distribution of sale prices skewed significantly lower in the January data with a big drop in the number of $1M+ homes sold but a more consistent number of homes under $600k sold. This leads to a much lower median price, but doesn’t mean home values are dropping, just that fewer expensive homes were sold.

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Average Price: The chart of monthly average prices tells a different story about price trends, showing a clear upward trend since 2019/2020. However, as you can see, using average price presents its own set of data challenges because of how much variability there is on a month-to-month basis based on the type/balance of sales included in the data for any given month.

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Buyers Still Won During Q4

I’ve shown a bunch of reasons why the low median price for January sales wasn’t an accurate representation of the market (home values not down 15.4% year-over-year or to 2018-2019 levels), but I should still point out that it was objectively a more favorable time for buyers to negotiate better deals, just not to the tune of double-digit price drops.

The average home that sold in December ’22 and January ’23 sold for 4.2% less than the original asking price, which is pretty good when you consider the average home in the spring of ’22 was selling for nearly 1% over ask. In my opinion, this is the best measure of how much home values actually dropped from spring ’22 to November/December ’22, which is likely about 5%.

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If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Interest Rate Forecasts and New Loan Limits

Question: What are current forecasts for mortgage rates in 2023 and beyond?

Answer: Happy New Year everybody!

A few weeks ago, I posted a “Beyond the Headlines” deep dive with James Baublitz, VP of Capital Markets at First Home Mortgage, into why interest rates have increased so much.

As the calendar turns, many of you will be kicking off your home search and asking about current and forecasted interest rates, so I’ll cover that today, plus a quick note on recent loan limit increases for down payments as low as 3%.

What is a “Normal” Mortgage Rate?

The first thing to understand about mortgage interest rates is that they are market-driven and forecasting comes with the same amount of unpredictability as any other economic/market-based forecasting (GDP, Unemployment, Stocks, etc). Take predictions/forecasts with a grain of salt.

The other truth that is best illustrated by the chart below, which shows the average 30yr fixed mortgage rate since 1971, is that there really is no established “normal” interest rate that we can point to and say “this is what you can expect when markets stabilize.” So, use caution when relying on assumptions about future rates (e.g. for a refi).

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Forecasting Future Rates

Most major forecasting organizations including Mortgage Bankers Association, Freddie Mac, and National Association of Realtors (NAR) believe rates will steadily decrease through 2023 and that trend will continue into 2024.

Mortgage Bankers Association expects rates to fall faster than Freddie Mac and NAR, with average 30yr fixed rates hitting mid 5s by the 2nd quarter and low 5s by the end of 2023. They forecast that rates will be in the 4s by Q1/Q2 2024 and believe the long-term stable rate to average 4.4%.

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Freddie Mac sees rates remaining in the mid 6s for most of 2023 and closing out the year at an average of 6.2%.

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NAR expects the average 30yr fixed rate will hover just above 6% in the first half of 2023 and then settle into the upper 5s in the second half of the year:

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Higher Loan Limits for Lower Down Payments

The Federal Housing Finance Agency (FHFA) just released new conforming loan limits for 2023, with significant increases to reflect recent price growth. The jurisdictions in the greater DC Metro area were given the maximum loan ceiling of $1,089,300.

Beginning this year, Fannie/Freddie will insure loans up to $1,089,300 with as little as 5% down, or the equivalent of a purchase price just under $1,115,000 with 5% down. The new conforming limits increase the maximum loan amount with 3% down to $726,200, or the equivalent of a purchase price just under $749,000 with 3% down.

For any conforming loan (or any loan for that matter), borrowers must also qualify on several factors including credit score, debt-to-income ratio, first-time buyer status, and more. Feel free to reach out to me for lender recommendations if you’d like to explore your mortgage options.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Most Expensive Homes Sold in the DMV in 2022

Question: What were some of the most expensive homes sold this year in the DMV?

Answer: Happy holidays and new year everybody!

It’s always fun to look back at the most expensive homes sold in our nook of the world, so without further ado, let’s take a look at the most expensive homes sold this year in DC, Maryland, and Virginia. Note: this includes what is entered into the MLS, it’s certainly possible (likely) that expensive homes have traded hands privately outside of the MLS.

The most expensive home sold this year in all three DMV states is a beautiful 550-acre estate, with a private 18-hole golf course, in Upperville VA that sold for $23.5M! Despite the hefty price tag, it falls well short of the record sales from 2018, 2020, and 2021 that all cleared $40M.

Listing by John Coles, Thomas and Talbot Estate Properties, Inc (1584 Rokeby Rd, Upperville, VA)

Top 5 Most Expensive Sales in Arlington

Listing by Robert Hryniewicki, Washington Fine Properties (3433 N Albemarle St, Arlington, VA)

Arlington’s average and median prices are sky-high, but the area generally likes ultra high-end properties we see elsewhere in the region. Arlington’s most expensive sale this year is a new build in Country Club Hills clocking in at 7,450 SqFt, seven bedrooms, seven full bathrooms, and two half baths. The property sits on an unusually large (for Arlington) .39-acre lot.

Top 5 Most Expensive Sales in Alexandria

Listing by Preston Innerst, EYA Marketing (5 Pioneer Mill #502, Alexandria, VA)

The most expensive sale in Alexandria is a townhouse built in 1800 in Old Town that sits on nearly ¼ acre with over 6,000 SqFt and seven bedrooms. Pictured above is the second priciest sale in Alexandria, a waterfront penthouse condo in Robinson Landing with nearly 2,800 SqFt for $4,509,000.

Top 5 Most Expensive Sales in Fairfax County

Sold by Daniel Heider, TTR Sotheby’s International Realty (576 Innsbruck Ave, Great Falls, VA)

The most expensive sale in Fairfax County comes in at $11M for a 20,000 SqFt home recently built one block from Langley High School. Pictured above is the second most expensive sale in Fairfax County of a sprawling Great Falls residence on five acres, built in 2007, sold for $10.5M.

Top 5 Most Expensive Sales in Loudoun County

Listing by Cricket Bedford, Thomas and Talbot Estate Properties (21827 Quaker Ln, Middleburg, VA)

The most expensive sale in Loudoun County for $4,950,000 of nearly 190 acres with an active Angus cattle operation.

Top 5 Most Expensive Sales in Washington DC

Listing by Michael Rankin, TTR Sotheby’s International Realty (3017 O St NW, Washington, DC)

3017 O St NW in Georgetown is Washington DC’s most expensive sale, at $11.5M, for nearly 8,000 SqFt on over ¼ acre.

Top 5 Most Expensive Sales in Maryland

Listing by Brad Kappel, TTR Sotheby’s International Realty (3235 Harness Creek Rd, Annapolis, MD)

The most expensive sale in Maryland is a beautiful waterfront home in Annapolis with over 3.5 acres and nearly 12,000 SqFt, built in 2014 for $12,000,000.

I hope this makes for some fun conversation during the holidays about what type of ultra high-end home you would buy if you win the lottery! But I’ll be honest, the most expensive homes this year aren’t nearly as impressive as last year’s (link if you want it).

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Arlington Condo Market Performance Metrics

Question: How has Arlington’s condo market reacted to higher interest rates?

Answer: In last week’s column, I looked at performance metrics for detached homes in Arlington, shared my thoughts on local pricing behavior, and discussed news about the national vs local real estate market. This week we will look at the underlying performance metrics in Arlington’s robust condo market.

Underlying Arlington Market Performance Data for Condos

Here’s how I approached the data used in this week’s analysis:

  • Low-, mid-, and high-rise condos only
  • Resale data only, no new construction
  • All data is presented by the month a home was listed in so we can measure how home sales performed based on the month they came to market
  • Net Sold = Sold Price less Seller Credits
  • I used data from 2017, 2019, 2021, and 2022 because I think it offers a helpful snapshot of recent Arlington markets to compare 2022 to. 2017 was our last “normal” market because Amazon HQ2 was announced Nov 2018 and that kicked off a condo craze. 2019 was the first full year with the Amazon bump, but pre-COVID market, and 2021 was a full year of the COVID-driven shift in condo demand.

I either did not use or must caution your interpretation of this year’s August-November data because it is incomplete for purposes of this analysis. There are 13, 26, 39, and 42 condos actively for sale that were listed in August, September, October, and November, respectively, which will influence the performance metrics for those months when they do contract/close and most likely will result in worse performance metrics than those months currently show.

There are only 10 condos still for sale listed January-July that will likely pull down the performance metrics for those months once they contract/close, but not enough for me to be concerned about the resulting data being presented in this analysis.

Business as Usual for Condos

While the detached market was on fire in 2021 and early 2022, the condo market performed mostly along the lines of historical metrics, except for one month, February 2022, when average sold prices climbed slightly above the original asking price. As a result, high interest rates have led to a more modest reversal in pricing behavior over the last six months, compared to the detached market.

The only time in the last 15 years that we’ve seen a real acceleration in condo prices was during 2019 (and pre-COVID 2020) as a result of Amazon’s HQ2 announcement.

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Pace of the Condo Market Slightly Below Normal

We had a few months during the peak of the 2022 market where the pace of sales came close to the craziness we experienced in 2019, after Amazon announced HQ2, but average days on market has returned to its normal seasonal trends. As more data rolls in for closings in August-December, I expect the average days on market for the last 3-4 months of 2022 to exceed historical averages, but not by much.

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One of my favorite performance metrics is the percentage of homes that sell within 10/30 days. I think it beats average and median days on market for a true understanding of the pace of a market.

As opposed to average days on market, these charts indicate that high interest rates have slowed the pace of the condo market beyond the usual seasonal slowdown, with a notably slow October where just 38% of condos listed sold within 30 days. Expect to see these metrics fall even further as more condos listed after July contract and close.

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Looking Forward

Condo pricing tends to be pretty stable and movements up or down are relatively small, with the exception of major events like Amazon HQ2 (rapid appreciation) and COVID (rapid, temporary depreciation), so expect a return to stable and predictable pricing in our condo market where we’re used to seeing 0-2% appreciation year-over-year.

The effect of high interest rates will likely be felt most in the slow pace of the market. The pace will almost certainly increase in Q1 2023, which means we can expect about 1/3 of condos to sell within the first 10 days and about 2/3 to sell within the first 30 days during the spring selling season. 

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Arlington Housing Market Performance Metrics

Question: How have you seen the Arlington housing market react to higher interest rates?

Answer: I hope everybody had a fantastic Thanksgiving. The results of last week’s Dark Meat vs White Meat poll were impressive. With 559 votes in as of this morning, only three votes separated white meat as the preferred part of the turkey over dark meat! We may have found the only vote closer than a Georgia Senate Race!

National vs Local Market Expectations

With daily news about the nationwide (and global) housing collapse resulting from parabolic price appreciation followed by parabolic interest rates, I want to use this week’s column to check-in on what we’re seeing locally and remind everybody that what you read in the news is generally going to be the most attention-grabbing data points and that our market is likely to experience a much more modest correction than many other markets nationwide, as we saw during the Great Recession.

My Take on Local Pricing Behavior

I shared some detailed thoughts and observations last month in a column addressing price drops in Arlington and the TL;DR version is that 1) yes prices have dropped relative to their peak this spring, 2) there’s not nearly enough data available locally to say with any statistical confidence how much that drop has been, and 3) my observation was/is that market-wide in Arlington we’ve lost most/all of the appreciation we saw in the first 4-5 months of 2022 ,but 2021 prices are still mostly holding up. Keep in mind that in a volatile, low inventory market (current state) pricing is more randomized and case-by-case than it usually is, so you’ll see plenty of individual examples that buck the aggregated trends/assumptions.

Underlying Arlington Market Performance Data for Detached Homes

This week, I thought I’d share some charts of underlying market performance metrics to help illustrate what our market is experiencing. Here’s how I approached the data this week:

  • Detached (single-family) homes only. I’ll probably look at condos next week.
  • Resale data only aka no new construction because performance metrics used in this column for new construction aren’t usually representative of the market
  • I used data from 2017, 2019, 2021, and 2022 because I think it offers a helpful snapshot of recent Arlington markets to compare 2022 to. 2017 was our last “normal” market because Amazon HQ2 was announced Nov 2018 and that sent data in unusual directions. 2019 was the first full year with the Amazon bump, but pre-COVID market, and 2021 was a full year of COVID frenzy buying with normal seasonal behavior (2020 was totally out of whack on seasonality).
  • All data is presented by the month a home was listed in so we can measure how home sales performed based on the month they came to market instead of the month they closed (closed data is a lagging performance indicator)
  • Net Sold = Sold Price less Seller Credits

**An important caveat to this data is that I either did not use or must caution your interpretation of this year’s September, October, and November data because it is incomplete for purposes of this analysis. There are 15, 22, and 19 homes actively for sale that were listed in September, October, and November, respectively, which will have a significant influence on the performance metrics for those months when they do contract/close and most likely will result in worse performance metrics than those months currently show.

Note there are 2 homes for sale listed in each month May-July and 7 for sale from August that will likely pull down the performance metrics for those months once they contract/close, but not enough for me to be concerned about the resulting data being presented for those months

Net Sold Price to Original Ask down 9.3% in 6 Months

The average net sold to original ask dropped from a March peak of 105.9% to 96.6% in August. I suspect that once September-November listings close and we can start filling in those fields, we’ll see that number fall further but maybe not significantly because asking prices have started to react to weaker market conditions and many sellers are coming off their expectations for spring 2022 prices.

Of note, this performance metric is coming more in-line with 2017 metrics. I’ll be interested to see if performance metrics stabilize around 2017 numbers, pre-Amazon HQ2, or if they worsen. My guess is that they’ll worsen slightly compared to 2017 through the end of the year and come more into balance in 2023 (pending interest rate movements).

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Average Days on Market 4.8x Higher in August than February ‘22

Unsurprisingly, the average days on market has skyrocketed relative to earlier this year from 9 days in February to 43 days in August. August ’22 is still lower than August ’17, but the August average will increase once the 7 properties still for sale from August contract/close. 

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Homes Selling Within 10/30 Days Go from Record High to Low

One of my favorite performance metrics is the percentage of homes that sell within 10/30 days. I think it beats average and median days on market for a true understanding of the pace of a market. As opposed to average days on market, these charts indicate that our market pace is slower than 2017, on a seasonal basis.

We’ve gone from 82% of homes listed in March selling within 10 days to just 27% in October. Similarly, at least 90% of homes listed February-April sold within 30 days compared to 45% and 44% selling within 30 days in August and October, respectively. That is a massive change in market pace within 4 months!

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Looking Ahead

I expect the performance metrics of August-October to worsen as more of those listings contract/close and November-December to come in below 2017 numbers. It’ll be a bit difficult to truly understand the aggregate effect on pricing because Arlington is a relatively small housing market, but I’ll do my best to come up with some accurate measures once we’re far enough into 2023 and enough 2022 listings have sold. Ultimately, the tale of local home values will be told in how long it takes interest rates to settle back down into the expected 4.5-5.5% range (don’t hold out for sub-4% rates again).

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Are Home Prices Dropping In Arlington?

Question: I’ve read a lot of bad news about the real estate market, how is that playing out in Arlington?

Answer: Bad news sells…keep that in mind as you get your daily/weekly dose of headlines that the housing market is collapsing under the weight of high interest rates and overinflated prices. With that said, I’m not about to deliver a rosy picture of the Arlington real estate market, but it’s important to keep in mind that most of what you’ll see in the news will be cherry-picked statistics and stories around the country/region that are likely more extreme than what our market will experience overall.

Arlington remains one of the most stable, reliable real estate markets in the country. We are absolutely feeling the effects of a dramatic tide shift in demand, but just as our market didn’t see meteoric price increases like other markets from Loudoun County to Tampa to Boise during Summer 2020 to Spring 2022, we most likely won’t experience as extreme of a pullback while interest rates remain high.

Usually, you’d scroll down and see a lot of charts and data from me in an article like this, but I don’t think we have enough of the right data yet to tell an accurate story of property values in Arlington. So this week is more of a stream of conscious of my thoughts on property values, with a few data points sprinkled in. I welcome any and all theories, agreements, and disagreements in the comments section!

Have Prices Gone Down?

The short answer is “yes,” prices have come down from their 2022 peak. By how much? That is a very difficult question to answer and there’s no reliable way for us to know at this point. So let’s talk about how I think we should we talking about prices based on what we do and do not know at this stage:  

What we do know:

  • The prices we saw in the first half of this year are out of reach, in most cases
  • In the last seven days, 52 properties in Arlington (12.5% of homes for sale) have cut their asking price, which is a pace consistent with previous seven-day windows. Odds are this pace increases as we get closer to, and into, the holidays.
  • Price reductions and sale prices are not being discounted anywhere close to enough to offset the difference in monthly payments between earlier this year and now
  • The market always slows in the summer and continues to taper off through the end of the year (with the exception of September/early October), we’re just experiencing a more dramatic version of seasonality because of the sharp interest rate increases that have paralleled the traditional seasonal slowdown and because of where we’re coming from – insane demand for nearly two years.
  • Supply coming to market is down, contract activity is down, and showing activity is down all about 20-30% year-over-year

What we don’t know:

  • What is the appropriate baseline to judge price change from? Is it the relatively short window of peak pricing from roughly February-May 2022? If you want headline news, sure, but if you want a more accurate/helpful perspective on market conditions, you probably want to use a wider data set that goes back to Q2/3 2021.
  • We don’t have anywhere near enough data points after the market inflection this summer to assess market price changes in Arlington (or even Northern VA or the DC Metro, in my opinion) and because sold price data lags so much behind shifts in market condition, we won’t truly know what the pricing effects were on Q3/Q4 markets until at least February 2023 because many homes struggling to sell now won’t show up in sold data until then.
  • There’s no precedent for how buyers as a whole will respond to such extreme interest rate increases (see chart below I saw last week on MortgageNewsDaily.com that highlights the historical significance of recent rate increases), so it makes pricing challenging for sellers (and buyers, for that matter). Days on market has increased 2-3x or more for most sub-markets and the number of showings are down by about 30-35% year-over-year so it can also be very difficult for sellers to infer whether their time on market is price induced or not. A lot of current pricing is based on seller motivation and their hope/fears of market conditions 3-6 months from now.

The Big Unknown (hint: interest rates)

The most significant “what we don’t know” is what will happen with interest rates in the coming months/year. And please save me the “interest rates are still low relative to the last 30 years” non-sense. The fact is that buyers, homeowners, and prices have adjusted for sub-5% rates over the last 15 years and a long-term reversion back to the 6-8%+ range will be painful.

Per MortgageNewsDaily.com, the average 30yr fixed rate is ~7-7.3%, depending on the data source (see chart below). What we don’t know is how long we’ll have unusually high interest rates and that is ultimately what will drive changes in property values in Arlington, regionally, and nationally (I know, stating the obvious here).

Barring a change in Fed policy (e.g. reducing expected Fed Rate increases or bringing liquidity to the mortgage market), it seems unlikely rates will drop much or at all in Q4. High rates compounded with the normal seasonal slowdown means that there will be plenty of discounted sales from motivated sellers who don’t want to hold out until 2023, but when we eventually aggregate all the sales data from Q3/4, I’m not sure it will amount to an eye-popping drop in prices across the entire Arlington market (maybe 5-10%, depending on your baseline data).

I think the problems (aka a double digit drop in home values over a longer 6-12 month period) will show up in Q1/2 2023 if interest rates are still 7% or more through Q1 2023. I think that is when we’d start to see property values in and around Arlington drop as a whole, by uncomfortable amounts (maybe below 2021 prices).

On the flip side, if rates come down by late Q4/early Q1 and we start seeing 6% or lower averages on the 30yr fixed, that would coincide with our normal ramp-up period into the spring and the market could very quickly turn around. I would bet that if we see the average 30yr fixed rate get to the mid 5% range or less in Q1, we will see a rapid return to competition as buyers who have been sidelined due to high rates in the 2nd half of 2022 return to the market and meet the normal churn of new buyers introduced to the market in the new year.

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If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Resale Value of Home Improvement Projects

Question: We are planning to put our home on the market this spring and seeking advice on home improvement projects to maximize our sale. What guidance do you have on home improvement projects with the best resale value?

Answer: The decisions you make about money you do or do not spend improving your home prior to a sale can influence your bottom line more than most other decisions you make during the sale process. They’re also the decisions you’re most in control of, so take your time and plan carefully.

Most Remodeling Projects Lose $$$ on Resale

Remodeling.com publishes an annual report showing the resale return of specific remodeling jobs, based on region of the country, and the 2022 report was published earlier this month. Unfortunately, I can’t share the DC-area report because of copyright issues, but it’s worth visiting the link yourself (they require some basic info).

The findings of their report show that the majority of projects (e.g. bathrooms/kitchen remodel, new roof/windows/siding), done individually, return just 50-80% of the cost. I have seen another study by Zillow that shows similar projections.

There are, of course, always exceptions to this guidance. For example, if most of your home has been updated except for one room/bathroom, you will probably get a much better return making modest improvements to the lagging space to bring it up to par with the rest of the home. Another example is improving something that is in exceptionally bad condition such as replacing old, rotting single-pane windows that don’t function and have air leaks; you’ll probably earn yourself close to or above 100% return on this work rather than the ~65% determined by the Remodeling.com study.

So when considering larger scale home improvement projects – kitchen reno, new roof, porch addition – it’s rarely a good idea to do this work strictly for resale purposes, but only if you’re going to realize personal value from it.

Should You Ever Spend on Listing Prep?

The study mentioned above is in reference to more expensive home improvement projects and does not include the most common (and profitable) work done for listing prep like painting, power washing, cleaning, landscaping, and flooring.

Prior to most sales, every homeowner should make a list of possible repairs and improvements and gather pricing for all worthy projects. If you plan to hire a real estate agent for your sale, I highly recommend doing this with your agent, who should have a good understanding of profitable vs unprofitable projects for your market/property type and have a team of contractors available to support the work. They should have a deep enough knowledge of buyer preferences, your sub-market, and project cost to prepare a set of listing prep recommendations based on your home and budget, rather than a generalized one-size-fits-all plan.

After you prepare a full list of potential improvements, you can bucket them in tiers and analyze each tier for cost, project timeline, and impact on the expected resale value to determine which improvements make the most sense. These tiers generally fall into three categories:

  • Clean-out, Clean-up: This focuses on the low cost, high return items to make a home more presentable such painting, deep cleaning, repairs, light landscaping, etc 
  • Bring up to par: Investing in one/some more expensive projects to bring them up to par with the rest of the home. For example, improving a dated bathroom if the rest of the home is updated so that the one bathroom doesn’t drag down the value of the other improvements.
  • Remodel/Homeowner Flip: Similar to what an investor might do to a dated home in an expensive neighborhood, a homeowner might choose to make a major investment into updates and benefit from a significant profit

Consider All Costs

The cost of doing improvements goes beyond the cost of the labor and materials. Don’t forget to consider things like:

  • Your time managing the work (note, a real estate agent will generally handle project management)
  • If you’ll live in the home during work, the inconvenience of having work done while you’re there
  • If you’ll move out before starting work, the carrying cost while work is being done
  • Risk of something going wrong during the work (applies more to larger projects)
  • Contingency budget for unexpected work that may come up during the project(s)

Always Seek 100%+ ROI

There’s no doubt that remodeling your kitchen will generate a higher sale price, but it’s rarely advisable to invest money into improvements if you won’t return more than 100% on the investment. Herein lies the challenge and strategy in planning your improvements. Understanding the profile of your likely buyers and what they value, plus other factors like market conditions and property type, is crucial to making investments that generate profit, not just a higher price.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Find Savings in Your Condo/HOA Budget

Question: We are finalizing our 2023 condo budget. Do you have any advice for ways to save money?

Answer: As a former Condo Board Treasurer, I feel the pain that this time of year brings, so I’m happy to offer some advice that helped me finding savings while I oversaw the budget and has helped other Associations do the same…review your Master Insurance Policy. I know, it’s not the most exciting answer, but your insurance policy is likely a top three expense on every year and if you haven’t reviewed it lately, there’s a good chance you can cut the cost by 5% or more and probably improve your coverage at the same time.

I’m not an expert in insurance so, I asked Andrew Schlaffer, President of ACO Insurance to provide some details on what Boards should look for when they do a review of their Master Policy. If you’d like to discuss a review with Andrew directly, you can reach him at 703.595.9760 or andrew@acoinsgrp.com. Take it away Andrew…

Hardening Markets, Increasing Premiums, Decreases in Coverage

The condominium insurance marketplace is facing challenges that will impact homeowners in 2022 and beyond. Water damage claims are still among the loss leaders impacting Unit Owners, along with fire damage and wind/hail claims. The DMV is home to many aging condo buildings that continue to struggle with mitigating water damage losses and their impact on insurance premiums.

As water damage claims continue to rise and property damage costs increase, many insurance carriers are beginning to make changes to their coverage offerings that may increase your risk exposure. A few examples of these coverage changes include Increased deductibles, per unit water damage deductibles, removing coverage for Sewer or Drain Backup and Wind-Driven Rain. 

In general, condominium property rate increases in the DMV have been significant and unpredictable. Much of the pricing impact can depend heavily upon carrier underwriting discretion which highlights the importance of your insurance professional specializing in this space. It has not been unheard of for Master Insurance policies to receive between a 7% to 15% property rate increase in 2022. For struggling communities, these rates are much higher. 

The umbrella/excess liability carrier marketplace has also faced tremendous disruptions. There are several factors driving these rate increases including but not limited to: COVID-19 impacts, years of underpricing, reinsurance rate increases, and the rise of nuclear verdicts (claims over $10MM). Additionally, there have been several specialty real estate programs who no longer offer umbrella/excess liability options for the habitational industry which has put a lot of strain on remaining carrier markets to fulfill the increase in demand. Many communities can expect umbrella/excess liability rates to increase between 10% to 25% this year. 

Pillars Of Insurance Reviews

Condo insurance reviews require a holistic approach, so it’s important to break the cost into a few distinct categories: insurance premium, deductible expense, and out-of-pocket costs. To effectively accomplish long-term savings, all three of these categories need to be considered and addressed with a qualified insurance professional.

Adjust Coverage Responsibly To Save On Premium

Premium is certainly a factor to consider during the insurance selection process; however, available insurance products differ significantly. Coverages and services should be very carefully analyzed and compared. While omitting various coverages will save premium dollars, it might also result in substantially increased costs to the Association for out-of-pocket expenses related to uncovered claims. It is critical to work with a professional who understands local insurance needs and can adjust your insurance program in a way that maximizes premium savings while maintaining adequate insurance coverage. Some coverages may be required by statute and/or Association documents, so cutting required coverage exposes the Board to unwanted risk.

Deductibles Based On Loss History

Associations with strong financials often choose to increase their property deductibles which can provide immediate savings of 2-5%. Deductibles range from $2,500 to $25,000+. When considering deductibles, it is important for the Association to review their loss history and the loss history of comparable buildings in an effort to obtain an accurate estimate for deductible expenses.

Rate Shopping

The most common strategy employed by Associations seeking lower insurance costs is to shop their carrier. An Association can accomplish this in several ways but generally their appointed broker can offer alternative carriers in an effort to obtain the most competitive rates possible. Make sure your broker has access to all of the competitive markets in order to maximize the likelihood of finding savings.

Secondly, and more importantly, if savings is found, your broker should verify that all required coverages are included to secure the Association’s long-term financial security and lender approval. Additional savings can be realized by a thorough coverage analysis to verify the Association is not being over-insured by paying for coverage it won’t use.

To insure cost savings and long-term health of your property, make sure your insurance broker specializes in Condominium or Homeowners Associations. To maximize your savings, the Association, insurance broker, and insurance carrier need to work in harmony to identify and reduce threats to the financial health of the community.

Help Reducing Claims

One of the best ways to keep insurance costs down is to avoid claims altogether.  Some examples of how insurance brokers can help reduce claims and the impact claims have on your future premium costs include coverage reviews/benchmarking, claims management services, site inspections, building upgrade recommendations, life safety planning, vendor contract reviews, discrimination/harassment training, and hiring/firing best practices. 

Thank You

Andrew, thank you very much for providing your insight. I know from experience how much of an impact an insurance review can have on a condo budget, but also how important the right coverage can be when there’s an unexpected claim.

One thing Boards often overlook when they’re solely focused on price is the quality and speed of service when a claim in filed. For example, if a pipe bursts and floods the gym and lobby, a Board should be confident that the work orders will be executed quickly so the building can be back on its feet without delay or headache. Unfortunately, most Boards don’t think about this until they’re dealing with it, and it’s too late.

I encourage any Board/Treasurer to reach out to Andrew to review their policy. His contact info is:

Andrew Schlaffer, President

ACO Insurance

www.acoinsgrp.com

Direct: 703.595.9760

Email: andrew@acoinsgrp.com

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Ask Eli, Live With Jean playlist.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH | @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.