real estate

Ask Adam: New Construction Choices in Arlington

By ARLnow.com

This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: I would like to buy a new home in Arlington. I’ve seen quite a bit of construction, can you tell me what is going to be available by end of year?

I’m happy to do so. Below are brief introductions to the various new construction projects that currently have homes available for move-in before 2013.

Arlington Condos:

Turnberry Towers is located in Rosslyn at 1881 N. Nash Street. This is the most luxurious addition to the condo market in Arlington. Imagine living in a 5-star hotel with valet service, doorman, a grand lobby, indoor pool and every amenity you can wish for. The homes are larger than your average condo in Arlington and come “decorator ready” so that you can pick out your own flooring and wall coverings. All other premium finishes are included. Turnberry Towers is at the tail end of sales with only 11 homes remaining. Prices range from $825,000 to $4,350,000.

Gaslight Square is located between Rosslyn and Courthouse at 1700 Clarendon Boulevard. Gaslight Square is selling in three phases. The first phase is complete, models are available to see and residents have begun moving in. This is the same builder as Wooster & Mercer Lofts, located next door. Gaslight is a little more refined and includes private elevator access to all upper level units. Every home includes outdoor space ranging from grand rooftop terraces to modest balconies. Prices range from $769,900 to over $1,400,000.

Lyon Pointe is located in Lyon Village within walking distance of Clarendon metro station. The address is 2702 Lee Highway. This is a true boutique building with only eight homes total (two per floor). Like Gaslight Square, the building offers private elevator access where the elevator opens directly into your home. The finishes are top notch. The penthouse units come with huge rooftop terraces and the ground floor includes sizable garden patios. Though the building is located on Lee Hwy., the high quality windows buffer most of the noise and there is decent separation between the building and the road. Construction of Lyon Pointe is still underway, but sales have begun. Prices range from $699,900 to $829,900.

Dominion Heights is located in Cherrydale at 2702 Lee Highway. Unlike the others, this is not within what most people would consider walking distance to the Orange Line. Cherrydale does have its own share of shops, restaurants and charm. The building is targeting LEED Gold certification so homeowners can expect low utility bills and improved comfort. Standard finishes include hardwood flooring, gas cooking with stainless steel appliances, and granite counters in the bathrooms & kitchens. Prices range from $312,500 to $716,000.

Arlington Townhomes:

The Court at Lyon Village is located in Lyon Village at the intersection of Lee Hwy. and Veitch. They are about three blocks north of Courthouse metro station. 13 new townhomes are being constructed. Each townhouse includes outdoor space perfect for entertaining, gardening and grilling; on lots that range up to 3053 square feet. Each home also includes a 2-car garage. Another bonus is the view that comes with some of the homes. The Court at Lyon Village sits on hill with views that reach parts of McLean, Georgetown and the National Cathedral. Currently there are two townhomes left, priced at $950,000 and $1,100,000.

Cathedral View is located adjacent to Washington Golf and Country Club. I have not been in these homes, but the photos are truly extraordinary. They include elevators, four finished levels, three car garages, slate roofs, views of the National Cathedral (hence the name), and size & finishes to rival the premiere single family homes in North Arlington. There are four homes still available starting at $4,295,000.

Arlington Single Family Houses:

The Enclave of Ballston is located on the outskirts of Ballston off of Carlin Springs Road. There are a total of 10 lots. Each home includes three finished levels, two car garage, professionally landscaped and fenced yards, dual zone gas heat and high end finishes. The exteriors are stone and cement composite siding. Depending on the lot you chose, you may be able to select the homestyle and finishes. Only five lots are currently available and prices from $1,300,000 to $1,500,000.

There are a number of custom and spec homes being built throughout Arlington that I’m happy to provide you a list of if you would like. Just send me an email: [email protected].

*All pricing and descriptions are deemed reliable but not guaranteed.

Ballston Office Building to Be Vacated, Renovated

By ARLnow.com

(Updated at 12:40 p.m.) The Webb Building, a 10-story office building at 4040 N. Fairfax Drive in Ballston, is being renovated.

The building’s current tenant, the Department of Defense, will be moving out in December as a result of the Base Realignment and Closure Act (BRAC). In anticipation, the building’s owner is embarking on a major renovation project to “re-position” the 1960s-era building for occupancy by a new tenant.

“The building… will be fully renovated, with a new lobby, landscaping, façade improvements, fitness center, updated common areas, updated HVAC and fire and life safety systems, and a roof deck with extensive views,” according to a press release. “We see a unique opportunity to deliver a fully refreshed, high quality work environment at a price point substantially lower than the new buildings being delivered in the Rosslyn-Ballston corridor.”

To fund the $5 million renovation project and the leasing efforts, owner RESI Management has raised $21.2 million from Chevy Chase-based Federal Capital Partners, along with a $33.5 million loan from Wells Fargo. The renovations are expected to be complete by mid-2013.

The 184,216 square foot building first opened in 1966. Located two blocks from the Ballston Metro station, the building has been serving as the headquarters for Department of Defense Education Activity, which manages  schools for military children.

Ask Adam: When Is the Best Time To Sell?

By ARLnow.com

This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: When is the best time of year to sell a home in Arlington?

This is a question that comes up quite a bit. I’m going to share a couple tools I use to analyze the peaks and valleys of market activity. As usual, I’ll also share my opinions.

Google Insights provides a graphical analysis of when people are searching various subjects. Obviously real estate is the subject of interest for this article. It seems that year-after-year there is an incline in the amount of people searching for real estate that starts around the beginning of the year and peaks in July. There is then a decline that continues into November. As you might guess, the number of searches for real estate are the lowest during the winter holiday season. This is a demonstration of interest level, but does it translate into sales?

RBI provides a graphical analysis of real estate sales activity based on information collected by MRIS (our local multiple listing service). As you can see in the chart (right), sales activity follows a very similar trend to that of Google searches for real estate.

According to these charts, late spring and early summer are going to give you largest audience for the sale of your home, especially if you have identified families with children as your target market. I’ve found that many parents prefer not to have their kids switch schools in the middle of the year. They often like to start looking for homes in May and June.

This is also the time of year when the most homes are on the market, so there is naturally more competition between sellers. If you are not targeting families with children, then I don’t think you need to feel as constrained to May and June. You may do just as well during one of the shoulder months.

If at all possible I recommend not listing your home in November, December or January. People are distracted by the holidays, it’s not the most desirable climate to be shopping for a home and if you have a yard it is not going to look its best this time of year. To be on the safe side, take some pictures of the exterior of your home when it is in full bloom so that you can display them if you do have to sell your home mid-winter.

Another consideration I’ve been hearing about lately is the election. If there is a transition to a new president, it will cause people to move in and out of our area. That said, I can’t find any evidence that this event would create a significant enough amount of movement in Arlington for you to benefit from planning around it.

Other non-seasonal factors you should pay attention to are interest rates, limited time tax incentives and employment rates.

If you are considering the sale of your home and would like a look how your local market is performing, please feel free to send me an email: [email protected]

Ask Adam: Getting Closing Costs Paid For

By ARLnow.com

This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: My fiance and are planning to purchase a home in Arlington this fall and are wondering if we can expect the sellers to pay all the closing costs?

Let me start with some basics.  When closing on the sale of a home, the buyers and sellers each have their own set of closing costs that they are required to pay for.  In some circumstances, a buyer will negotiate to have the seller subsidize a credit towards the buyer’s side of closing costs.  You may want to check out my recent ARLnow article for tips on calculating your closing costs.

Sellers are primarily concerned about the net value of the contract they are considering rather than whether it includes a closing cost concession or not.  If the value of the contract is $500,000… they make the same amount of money whether you pay $500,000 and cover your own closing costs or if you pay $510,000 and ask for them to subsidize $10,000 of your closing costs.

The question becomes whether asking for a closing costs subsidy is the best strategy for you.

A ramification of asking for a closing cost subsidy is that by artificially inflating your price to $510,000 you are essentially financing 80% of that $10,000 over the life of your loan.  That $10,000 could cost you a whole lot more by the time you sell your home or pay off your loan.  Another consideration is whether it will weaken your offer.  A well advised seller knows that appraisals can be challenging in this market.  Using the above example, the home would have to appraise for $510,000 rather than $500,000 if the seller agrees to subsidize closing costs.

A benefit of asking for a closing cost subsidy is that you can hold on to your $10,000 rather than using it towards closing costs and invest it elsewhere.  With interest rates as low as they are, I can see you making a strong argument for this.

Now that I’ve talked a little about whether it is a good idea or not, let’s talk about whether it is possible.

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Morning Notes

By ARLnow.com

Challenges for Crystal City — Vornado Realty Trust, which owns half of the commercial real estate, is struggling to fill 2.4 million square feet of office space in Northern Virginia being vacated by government agencies, largely as a result of the military’s Base Realignment and Closure (BRAC) Commission. [Washington Post]

Romney Office Opens in Arlington — Republican presidential candidate Mitt Romney’s “Virginia Victory Office” — in Virginia Square — held a grand opening ceremony over the weekend. The special guest for the event was Wisconsin Gov. Scott Walker (R). [Sun Gazette]

Financing Secured for Pike Development — The Penrose Group, a Vienna-based developer, has raised $92 million to finance construction of “Pike 3400,” a 257-unit apartment building planned for the former Rosenthal dealership site at the corner of Columbia Pike and S. Glebe Road. [Washington Business Journal]

Flickr pool photo by Wolfkann

Ask Adam: Buying New Construction in Arlington

By ARLnow.com

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: I am considering a new construction condo in Arlington and am wondering if you have any advice?

I love new homes as much as the next guy, but I can not stress enough to be careful during the buying process. The purchase of new construction can seem almost too easy at first. There is a charming salesperson ready to tour you through the gorgeous model homes. Next thing you know you have a contract in hand and are drafting a check for a 5-10% deposit.

Slow down. Even if it is the perfect home for you, please take time to read the entire contract at least once. I’ll save you the suspense by telling you now that it is a very one-sided contract. The developer holds most of the leverage. That said, you need to understand what you are agreeing to, what is expected from you and what is expected of the developer. There are certain benchmarks you both agree to meet and you need to be sure you are on top of these dates. Make sure you get all of your questions answered before signing and have all agreements in writing. You may want to have an attorney to review the contract for you.

You’ll also want to take your time reviewing the condominium disclosure package. This will include financial information and bylaws that pertain to the condo association. In Virginia you get a 10 day rescission period to review these documents if you are buying a new condo. You get three days if you are buying a house or townhouse that is part of an HOA. Believe me, I know how boring this information can be for some of you, but please read it thoroughly so you are not caught with any surprises.

Before negotiating the price and concessions, find out what other buyers have paid for similar units. Sales prices for closed sales are available online on the Arlington County real estate assessment web page. If sales have not closed yet, you are at the mercy of the sales person and whether they will provide you with the most recent sales and concessions. I find that many of them are forthcoming with this information.

One thing that drives me crazy about new construction is how the the developer will try to strong arm you into using their preferred lenders and title company. In most cases it is to your advantage to be able to shop for your lender and title company on the open market. Therefore, I usually try to negotiate for my clients to be able to receive seller concessions without them being tied to the developers preferred lender and title company.

If the developer is requiring you to use their preferred lenders to receive closing cost dollars or some other incentive, make sure you are comparing apples to apples when considering the preferred lender versus an outside lender. Sometimes the $10,000 you are receiving in closing cost help will be nullified by an origination fee charged by the preferred lender at closing.

Virginia clearly gives all home buyers the right to choose their own title company, but watch out for penalties that the developer will stick you with in the form of “document review” should you actually want to exercise your right to choose your own title company. One local developer charges a $1,000 document review fee! It aggravates me just writing about this.

One last piece of advice is to hire a home inspector. If you are going to have the opportunity to conduct a pre-drywall and pre-closing walk through – hire a home inspector to inspect the property at both of these opportunities. Some salespeople will discourage you from doing so because you are going to receive a home warranty. Don’t listen to them. You are spending too much money to not want your home in as perfect condition as humanly possible by the time you take ownership.

I hope this helps and you enjoy your new home for many years to come.

Ask Adam: The Upfront Costs of Home Buying

By ARLnow.com

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: We are thinking about purchasing our first home and are wondering if you can help us budget for the upfront costs of buying a home?

There are going to be some variables involved depending the size of the home, price and amount you plan to use as a down payment. That said, I’ll do my best to give you a general idea of the costs involved in purchasing a home in Arlington.

Different loan programs are available that require a down payment of 0%, 3.5%, 5%, 10% and 20% or more. You will need to discuss the different options available to you with a loan officer that you trust.

Your closing costs are likely to be between 2% and 3% of the purchase price.  Closing costs include:

  • lender fees
  • title fees and insurance
  • prepaid interest
  • prepaid insurance
  • prepaid property taxes
  • prepaid mortgage insurance (if applicable)
  • government recording and transfer charges
  • survey (if applicable)
  • association dues / reserves (if applicable)

If you negotiate a closing cost subsidy, it will go towards paying for the above mentioned closing costs.  Your lender should be able to provide you with a loan scenario worksheet that will itemize the closing costs and monthly costs for your individual situation.  There are also online closing cost calculators available, like this one from RGS Title. I recommend always consulting with your lender before negotiating a closing cost subsidy so that you are aware of any restrictions they may have.

By closing towards the end of the month, you can reduce the amount of prepaid interest collected at settlement.  You also have the option of purchasing owner’s title insurance or not.  Be sure to ask whether there is more than one type of policy. Many title companies present you with their “enhanced” policy by default, which may not be worth the extra money to you.

The lender may require you to pay the appraisal and application fee at the time you make application for your loan. Budget about $450 for these costs.

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Ask Adam: Zillow or County Assessments?

By ARLnow.com

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: Is it better to use Zillow or the Arlington County assessment to determine home values?

Zillow can provide a fun way to follow an automated estimate of your homes value over time.  Would I use it to price a home I’m going to sell or determine how much to offer on a property for sale?  No.  There is too much money at stake to look past the inaccuracies that Zillow is known for.  I’m not an expert on Zillow, but my guess as to why it is often inaccurate has to do with the system’s inability to know about upgrades to the subject and comparable properties.

Arlington County assessments are a wholesale view of value based on very basic characteristics of a home.  I’ve seen assesment values as much as $200,000 off from the actual market value.  Of course the assessed value was less than market value so the homeowners were quite happy about it, because they were paying less in taxes than they could have been.  Again, I would not recommend using assessed value as a gauge of market value.

I’ll describe how I go about determining market value, but keep in mind that this process is more of an art than a science.  Lots of variables beyond price, weigh in on how a property performs on the open market, such as how it shows, how it is marketed, what time of year it is, etc..  The following explanation is as though I am getting ready to list a home, but you can use elements of the process when considering an offer to purchase a home as well.

The first thing I do is try to find at least three of the most recent and most similar sales in your area that have occurred in the last 6 months.  The next step is to create an even playing field between my subject property and the comparable properties.  This may sound backwards, but I deduct value from the comparable properties for items I feel adds to the value to those homes.  Conversely, I add value to the comparable properties for items I feel reduce the value of those homes.  For example, if my subject property is a condo with one parking space, but the comparable I am using has two parking spaces, I may deduct $20,000 from the value of the comparable.  I go through this process to determine the adjusted value of my comparable sales.  Keep in mind that the $20,000 adjustment (for a garage space in this case) can not be arbitrary.  It should be based on a recent sale were the garage space was a common denominator.   Adjustments can be made for many items, including:

  • Size of home
  • Size of lot
  • Days on market
  • Condition
  • Proximity to major roads
  • School system
  • Age
  • Finishes
  • POA fees

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Ask Adam: How Much Home Can I Afford?

By ARLnow.com

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question: What percentage of my income do you recommend spending on a home mortgage every month?

Great question. I’m going to defer this response to one of the best loan officers in the business, Paul Nagel:

Even after the mortgage market crash, banks will approve the majority of buyers with good credit for more than they would want to spend on a home. For most loan programs, banks will approve someone to have a mortgage and minimum payments on debts (credit cards, car loan, etc.) at 45% of their gross income. For example, someone with low debts and earning $100,000 may be approved up to a mortgage payment of $3,500 per month.

That said, my SUV might be able to drive 120 MPH, but that doesn’t mean that it’s wise to drive that fast. Said differently, it’s often not the upper limits of what can be done that determines the most prudent course of action.

In terms of looking to purchase a home, any good lender can provide feedback on how much of a mortgage could one be approved for by a bank; however, the more important (and more difficult) question when looking to purchase a home is not what could I purchase, but what price would fit within my personal and financial plans. That’s where it gets very specific to each person’s situation and/or preferences.

I’ve seen people with extremely high incomes purchase very modest homes, as they preferred to go to Paris once a month and eat most meals at fine restaurants. I’ve also seen individuals purchase very expensive homes relative to their monthly income, but their preferred recreation was Netflix at home with family.

The best advice I could give would be to make sure to obtain feedback on two topics from any given lender: First, understand what the approximate upper limit that you would be approved for by a bank. Second (and more importantly), prepare a budget that takes into account your personal and financial plans. A good lender can help you understand how much home that will afford you based on estimated costs of home ownership.

A lender can’t provide a specific answer regarding what to spend, but they definitely should provide enough information so that it’s very easy for you to determine the answer based on your specific goals & plans.

Continue to send your real estate-related questions to: [email protected]

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com. Community discussion guidelines: While we encourage a spirited exchange of views in the comment section, comments that are deliberately mean-spirited will be removed.

Ask Adam: Arlington Swimming Pools

By ARLnow.com

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. Please submit follow-up questions in the comments section or via email.

Question:  I’m moving to Arlington and would like to find a neighborhood with a pool.  Do you have any advice?

The majority of single family home neighborhoods in Arlington do not have a homeowners association (HOA), and therefore do not include amenities like swimming pools. I’ve found that this can be a letdown for families moving from Fairfax and Loudoun Counties.

The good news is that there may be other pool options available. The bad news is that it may take a few years to work your way up the local pool’s waitlist. Who knew pool memberships were in such high demand in Arlington?

I’ve put together the following guide to help you out. The information provided is deemed to be reliable, but not guaranteed. Please reach out to the individual pools you are interested in to learn more about the waitlist process and the cost details.

Overlee
6030 Lee Highway, Arlington, VA
http://www.overlee.org/

Waitlist:  Currently there are 666 families on the waitlist.  The estimated wait is 3-5 years.  You must be a resident of Arlington, Falls Church or McLean to join.

August passes are available for non-member at a cost of $325 / family.

Cost:  A non-refundable initiation fee of $2,000 (as of February 2011 — this amount is subject to change), plus $1,000 construction fee is required. In 2012 the annual dues are $700.

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O’Sullivan’s to Expand into Sam’s Corner Space

By ARLnow.com

O’Sullivan’s Irish Pub (3207 Washington Blvd) in Clarendon has signed a new lease that will allow it to expand into two adjacent storefronts.

O’Sullivan’s will soon take over the next-door Fragrance World and  Sam’s Corner storefronts, owner Anselm Griffiths tells ARLnow.com. Fragrance World will move to a new storefront on N. Irving Street while Sam’s Corner, a deli, will close permanently, Griffiths said.

Griffiths hopes to start construction on the expansion in July. O’Sullivan’s is expected to remain open during most of the construction, which Griffiths hopes will wrap up around mid-September. When it’s all said and done, O’Sullivan’s will expand from about 1,800 square feet to 3,350 square feet. In addition to making more room for concert and happy hour crowds, the new space will allow O’Sullivan’s to focus a bit more on its dining business, Griffiths said.

The popular but often cramped pub first opened as Molly Malone’s in 2004, before Griffiths became an owner and changed the name in 2006. A second O’Sullivan’s location opened in Herndon about two years ago.

O’Sullivan’s and other storefronts along Washington Boulevard and N. Irving Street are not part of the Waverly at Clarendon Station apartment project behind it and will remain open even after the development gets underway, Griffiths said.

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