Local New Home Sales Trump Rest of Nation

There’s the national new homes sales market. Then there’s the local new homes sales market. And they’re quite different from each other. The Washington, DC metro/Northern Virginia new homes sales market is ahead of the curve and doing much better than the rest of the nation.

There have been many articles and media coverage of how new home sales have slowed down. In some areas, new home sales have “plummeted” and “almost completely dried up”. Builder Magazine just ran an article, “New Home Sales Decline, Prompting Predictions of Worst Year on Record”, which paints a very gloomy picture of the new home market.

But that’s the national market. What about the local market here in the Washington, DC metro/Northern Virginia area?

Builders with developments/communities in this area saw the worst of the local new home sales market 3 to 5 years ago. Things started slowly turning around about 3 years ago. Then, as of about 18 months ago, someone lit a match under the new home sales market and the market took off.

For example, in speaking with several folks who are in the construction business, both builder employees and subcontractors, work finally began flowing about anywhere from 12 to 18 months ago. Rather than looking for side jobs to make ends meet, they’re working full time building homes across the DC metro/Northern VA area.

Another example is builder sales centers. Instead of a lot of green dots signalling open lots and sales reps throwing incentives at buyers as if they were confetti, there are red dots all over the site maps and incentives are few and far between.

And the attitude of builder sales reps is quite different… A look of despair was hard to hide a few years ago while smiles and positive attitudes are the norm nowadays.

The most impressive example is the actual number of new homes being sold and the success of communities and developments throughout the area. At the top of the list is Brambleton (Ashburn, Loudoun County, VA)…

In 2010, Brambleton set a record for the most new homes sold in its’ 10 year history. On top of that…Brambleton has sold more homes January through July 2011 than it did January through July 2010.

The thing that makes that statistic even more impressive is that Brambleton is made up of not just one builder, but 7 builders. And they all build different products and appeal to different home buyer personalities, incomes and demographics.

Why is this information important to consumers? Here are a just a few of the reasons…

1. If you are only reading national headlines, you may get a rude awakening when you walk into a new home sales center and try to negotiate 10% off the base price, get another $50K in incentives and put down a deposit on that awesome lot that was available last week.
2. You may not have believed your Buyer’s Agent when they told you something similar last week or even 18 months ago, but here’s the thing…they were telling you the truth.
3. If you’re a seller, you need to realize that you don’t have just your neighbors’ homes to compete with. You also have nearby home builders to compete with. Buyers are not just looking at existing homes – they’re also looking very closely at what home builders have to offer. And what they have to offer is often very enticing.
4. Builders know that they have the market on their side so you have to be even more careful when working and negotiating with a builder. You should have a Buyer’s Agent well versed in new construction on your side. Remember, a real estate agent’s/broker’s commission is a already written into the sales price. And no, you don’t get that commission refunded to you if you don’t have an agent/broker. So why would you not hire an agent/broker, pay the commission anyway and pad the builder’s pockets with even more profits?

If you have specific questions about the local new homes sales market, new home communities, builders or the new home purchase process in general, email or call me any time.

 

The Latest Scoop on NV Homes, Little River Commons

I spent Thursday afternoon over at NV Homes, Little River Commons new home community and would like to give you the latest scoop on what’s going on there. In case you don’t know much about the community, here’s a quick overview…

NV Homes, Little River Commons is located off of Gum Spring Rd in Aldie/Chantilly in Loudoun County. NV Homes is selling town homes and single family homes with base price starting in the mid to high $300K’s for their town homes and low to mid $500K’s for their single family homes. There are trails, a common area, tot lot, soccer field, basketball court, baseball field and two ponds within the community. Though there is no club house nor pool in the community, your HOA dues are about half that of neighboring communities.

Now let’s get to the latest pricing and lot availability…

Town Homes

• There are two models available – the Astor and Carnegie
• The Astor is 22 feet wide and about 200 square feet smaller than the Carnegie, which is 24 feet wide
• Both models have a front-load 2-car garage with the entry on the ground level
• Both models have the kitchen in the rear, living and dining room in the front (on main/second level) with 3 bedrooms and 2 full baths (on upper/third level)
• Base prices are about $10K apart with the Carnegie being the more expensive model because it’s larger

I priced out an end unit Astor model with plenty of bells and whistles and it came out $399K. Here are some of the options that price includes:

• Full brick front
• 8 foot extension on all three levels (brings square footage to about 2700)
• Luxury master bathroom with large (aka useable) soaking tub and large shower with bench
• Full bath in basement
• Hardwood entire main level
• Granite counter tops, stainless steel appliances and level one upgrade cabinets in kitchen
• Carpet on all stairs
• Granite counter tops, upgraded cabinets and 12×12 tile in master bathroom and hall bath (upper level)
• Bay window off dining room
• Garage door openers, 2 remotes and keypad

There is one end unit (Astor model) available for April delivery. After that Astor is sold, you’ll have to wait until May/June (most likely June) for the next available delivery. There are a total of  only 4 buildings (18 town homes) left to build in the community.

Single Family Homes

NV Homes is also selling single family homes in the Little River Commons community. They’re selling at such a fast pace that they’ve sold several lots in their newest section, which has not yet even been recorded with Loudoun County (it will be recorded on Tuesday).

NV Homes has 4 models available in Little River Commons with base prices ranging from $500K to $560K (the latest pricing was released last Tuesday). The models range from a base square footage (upper two levels not including the basement or garage) of 2,722 to 3,527.

Since there are 4 models and so many different options and configurations available (and I don’t know exactly what you would choose in options), it’s hard to tell you what you would end up at as a final price. But I can tell you this…the typical final sales price of a single family home in the community is between $600K and $650K.

Incentives/How To Save a Few Bucks

Due to the high pace of sales, NV Homes – along with most other builders in the area – has scaled down on their incentives and either raised prices or made some standard options no longer standard. Nevertheless, you can get closing cost assistance and money off the base price/options in certain situations.

NOTE: If you are considering the Little River Commons community by NV Homes, you may also want to consider what Van Metre Homes has to offer in Stone Ridge, which is just across Gum Spring Rd from this community. For more information on what Van Metre Homes has to offer in Stone Ridge, click here.

To find out how to get the most in incentives/money off the price or for information about the builder, the community, available models or lots, drop me a line any time. I can best be reached via email or on my cell – danilo.bogdanovic (at) gmail (dot) com – 703.582.6900.

Loudoun Community Spotlight: Pulte Homes, Hamlets at Red Cedar

This Loudoun County Community Spotlight falls on the Hamlets at Red Cedar community by Pulte Homes. The community is located off of Evergreen Mills Rd in Leesburg, VA (click here for map). Once the community is complete, there will be a total of 350 homes situated on 1300 rolling acres.

Personally, I think that the Hamlets at Red Cedar community is ideal for those looking for that “private and quaint” community feel yet, be close to amenities and things to do.

The majority of single family homes in the Hamlets at Red Cedar community are located on 1/2 acre lots and the entire community is surrounded by conservancy lots ranging from 10 to 100 acres. This gives you privacy from surrounding development for up to 100 years (based on current zoning laws regarding conservancy lots).

Even though being inside of the community give you a feel of being away from the hustle and bustle of daily life, you are only 5 to 10 minutes from Brambleton Town Center, 10 to 15 minutes away from downtown Leesburg and about 10 to 15 minutes from the Dulles Greenway and the future Moorefield Station, which will include commercial, residential, retail and a Silver Line metro rail stop (coming 2016).

The Hamlets at Red Cedar is made up of town homes and single family homes. The town homes along with the Ambassador and Manor single family home collections have all been sold, but there are still some Stoneridge collection single family homes and home sites available.

The Stoneridge Collection offers 8 different models ranging from 2510 square feet on the upper two levels to 4589 square feet on the upper two levels. Base prices range from $539K to $739K. Delivery times are about 6 to 9 months though there are some quick delivery “spec” homes with move-in dates as early as November.

Lot sizes on the Stoneridge Collection are 1/2 an acre giving you more land than 90+ percent of the rest of Ashburn and Leesburg. One nice thing about these lots is that the majority of them still have trees in the back of them rather than just a flat piece of land where you can still see the house behind you.

Amenities include a club house with pool tables, a community living room, gym and pool. There are several parks, tot lots and trails throughout the community as well.

If you are interested in knowing more about the community, home models, available lots/home sites, spec homes, incentives, etc., email or call me – danilo.bogdanovic (at) gmail (dot) com – 703.582.6900.

Related Articles

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Slideshow of Hamlets at Red Cedar community

How to Buy a New Home and Still Have Representation

If you’re thinking about buying a new home from a builder, check out this question posted by new home buyers on Trulia:

My husband and I put an offer on a new house without representation from a Realtor. We have signed a builder’s contract. Can we still get a Realtor to represent us to go over everything until closing?

My response:

Yes, you can hire a Realtor to represent you at any time. But you will have to pay them out of your own pocket. The builder will not pay your Realtor any commission because you did not have them with you at the very beginning of the process and the transaction.

I’d be happy to chat with you more about this, but it’s a better phone call than an email or comment. What’s the best number to reach you on?

On a related note, you may want to read this post regarding a new home builder taking home buyers to the cleaners (to the tune of $50 million) - http://loudounscene.com/2009/07/beazer-homes-to-pay-50m-to-victimized-home-buyers.html

Here are excerpts from other responses:

I used to work New Homes for a decade. Keep in mind when you a prospective buyer enters the Sales Office of a new home commuity and you are asked to fill out and sign the little registration card, that is so the builder knows how the buyer came to the community. Builders have a formula they use to figure out the pricing of a community. Using historical information, they budget in the price the number of homes that will be sold with Realtor representation and if the advertising campaigns work well,and the road signage works well, sometimes they make out better with more buyers wandering in without representation. It’s business. They are trying to sell and make a profit. My advice for others out looking, if you have a Realtor or feel you want Realtor representation, just write on the card you have a Realtor. That way you will have that option at a later date if you feel you need it.

Remember Builders are no different than glorified For Sale By Owner situations. The person onsite works for the builder. Period. There responsiblity is to sell the homes on that site.

- Peggy James

Yes, you can, but the builder is under no obligation to pay them a commission. So if you want to pay them or they want to do it because they love you, its all good.

- Fred Wolfe

I sell new construction and new home communities with builders/developers of New Construction and New Home Developments and have so for years like many real estate professionals doing so.

This [registering of the buyer's agent/broker] must be done with broker/agent and potential buyer on the very first visit in the Sales office with the Sales Representative for the new home development on the floor during time of walk in to preview models of the new home community.

After first initial registration, the would be buyer can go back a number of times with their friends and family to preview models again in consideration of their purchase in that community once already registered with their agent representing them.

No money is out of pocket with the buyer. The commission earned to the buyers agent/broker is paid by the New Home Developer to the broker and broker/agent representing the buyer and the buyer is allowed to have his own agent represent him in the purchase of the new home development. The new home builder developer of that community represents then the seller which is the Builder of the new home development, and the agent/broker represents the new home community buyer for that developer.

- Sandra Allman

Don’t put yourself in the same situation as these new home buyers. Be prepared and you can have representation throughout the entire process and transaction – without having to pull extra money out of your pocket.

And the great thing is that being prepared is simple:

1. Before you start looking around, interview and hire a knowledgeable Buyer’s Agent experienced with new homes and builders in the area
2. Bring your Buyer’s Agent with you on your first visit and/or have them go out and preview new construction home sites and models on your behalf ahead of time

If you need to speak with an agent that knows the ins and outs of new homes and builders, email or call me. I would be glad to help.

Related Articles

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Brambleton Launches “Immediate Delivery/Spec Home” Blog Site

Gulick Group Lowers Base Prices, Revises Products in Brambleton

New Home Buyers: What You Don’t Know Can Cost You

Beazer Homes to Pay $50M to Victimized Home Buyers

Loudoun Increases Cost of New Homes for Builders and Buyers

While neighboring counties and their officials are trying to help developers, builders and consumers weather the recession, Loudoun County is doing the opposite. In doing the opposite, Loudoun is taking money right out of the pockets of buyers, sellers and homeowners.

Here is what neighboring counties are doing:

• The Montgomery County Council is considering delaying a proposed 3.5 percent increase in impact fees
• In Prince George’s, the County Council has lengthened the life of development approvals and held off increasing impact taxes
• Fairfax County has reduced the amount a developer must put up in surety bonds to guarantee a project’s completion
• In the District of Columbia, lawmakers are allowing regulators to lengthen from two to five years the time developers have to begin work on projects in southwest Washington

What is Loudoun County doing?

• Loudoun just raised proffers (the amount of money a builder must the county to build a home) by as much as 22 percent – $59,470 per single family home. The increases per type of property are $5,000 per apartment/condo; $11,000 per town home; $13,000 per single family home)

Who bears the brunt of these decreases and increases?

In the end, it’s consumers.

Here’s why…

If it becomes less expensive for a builder to build a home, the builder may offer greater incentives and/or lower base prices to create increased demand for their homes. The consumer wins and sales pick up.

If it becomes more expensive for a builder to build a home, the builder will most likely increase the base price and/or decrease incentives to make up for the additional cost. The consumer loses and sales slow down.

Sales picking up is better for homeowners and sellers. Sales slowing down is bad for homeowners and sellers.

Loudoun claims that the increase in proffers in necessary to pay for schools and public facilities. Ok…I get it. You need to pay for those things.

But why must those costs fall solely on the shoulders of home buyers? And why would Loudoun “OK” an increase in proffers (aka increase in the cost of buying a home) at a time when everyone and their mother is trying to lower the cost of buying and selling a home in order to stimulate the housing market?

Seems a bit backwards to me…

P.S. Supervisor Eugene Delgaudio (R-Sterling) was the only board member to oppose the motion.

On a side note, the increase in proffers is only for Eastern Loudoun. The proffers in Western Loudoun remained relatively unchanged. Hmmm…interesting.

Loudoun Community Spotlight: Goose Creek Bend, Brookfield Homes

This Loudoun County community spotlight falls on Goose Creek Bend, a Brookfield Homes community (click here if you don’t see the slideshow above). Goose Creek Bend is located off of Gulick Mill Rd less than a mile from Sycolin Rd on the border of Leesburg and Ashburn (click here if you don’t see the map below).

View Larger Map

All of the lots are 1+ acres and back to trees. Here’s the site plan:

All of the homes within Goose Creek Bend are luxury single family homes and offer 4 to 7 bedrooms, up to 6.5 baths and up to 4 car garages. The various models offered in the community are:

• Canterbury
• Davenport
• Halley
• Meridia
• Keenan

Base prices range from $599,990 to $709,990 with square footage ranging from 3091 to 3944 on the upper two levels.

Pros

• Large lots
• Private community
• Unique models/floor plans
• Close to ramp on/off Dulles Greenway and Sycolin Rd
• Amount of square footage, upgrades and lot size for money

Cons

• Lack of amenities
• Shopping is at least 15 minutes away (by car)
• Gulick Mill Rd is a gravel road (not good for all you sports car enthusiasts)

Brookfield Homes resumed sales in the community a short while ago and there are a handful of lots still available. If you would like to know more about the community, lots, models or available incentives, click here to contact me.

Loudoun Community Spotlight: Pulte Homes, Windermere in Ashburn

This Loudoun County Community Spotlight falls on the Pulte Homes Windermere community in Ashburn, VA. The Windermere community is located near the corner of Claiborne Parkway and Croson Lane immediately next to the Broadlands community.

Windermere is a mix of large town homes and medium sized single family homes. A total of 91 town homes and 83 single family homes will make up the community. Pulte has built or sold about 35 percent of the total homes so far and they’re expecting to sell the remainder of the community within the next 18 months. That puts completion of the entire community at about 24 months.

In speaking with the Pulte sales staff, I found out that they’ve already sold 9 homes this month (that’s a lot for new construction especially in a community of only 174 homes). I’m sometimes skeptical at how busy they say they are, but I’m going to believe them on this one – there at the same time as I was today were three Buyer’s Agents with their clients, two other sets of buyers without an agent and one set of buyers about to write a contract. And that was at 3:30pm on a Wednesday.

Base Prices/Models

Prices on the town homes start at $380K for the Westley II interior model (2296 – 2735 sq ft) and $390K for the Tyler exterior model (2411 – 2857 sq ft).

Prices on the single family homes start at $524K for the Kenley model (2696 sq ft on upper two levels); $533K for the Wynnewood model (2770 sq ft on upper two levels); and $542K for the Jamestown model (2974 sq ft on upper two levels).

Delivery Dates

Delivery dates vary, but count on about 4 to 6 months on the town homes and about 6 months on the single family homes. There are some “spec” homes available for earlier delivery including a Tyler model in the low $400K’s with a September delivery date.

Incentives

Pulte is offering some incentives as far as closing costs if you use their preferred lender. As for wiggle room in the base prices and/or options, there may or may not be any – that’s a secret I’ll only share with my clients (it’s only fair).

Amenities/HOA fees

Two things that popped out at me were the lack of amenities and not-much-return HOA fees. There are no amenities in the community yet, the HOA fee is $86 for single family homes and $100 for town homes. Considering what other communities within Ashburn and Loudoun County charge for HOA fees and the amenities they offer, Windermere has high HOA fees with little offered to home owners in return. In case you’re wondering…neither I (nor the sale rep from Pulte) could figure out why the town home fees are higher than the single family home fees.

Photos/Video Tour

There should be a slideshow of community photos I took at the top of this post (click here if you don’t see it). And don’t forget to check out my two-part video tour of the Windermere Pulte Homes Westley II and Tyler model town homes – part one and part two.

Visiting the new homes sales center in person

Make sure you have your Buyer’s Agent with you when you visit a new home/builder sales center. Click here to find out why.