Just Sold in Parks at Piedmont: Three Bedroom Condo for $185,000

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Real Estate Agent with Long & Foster REALTORS®, Gainesville, VA VA License # 0225089470

Just Sold in Parks at Piedmont:  Three Bedroom Condo for $185,000

This one car garage condo in Gainesville's Parks at Piedmont South Condominiums hit the market priced at $194,900 on April 18, 2012.  It immediately appealed to down-sizing and first-time home buyers.  The problem is that every one of our buyers needed a loan to purchase.  Parks at Piedmont Condos have been troubled by high delinquency rates for a long time.  When I called the Property Manager and inquired about the last recorded delinquency rate, she told me it had been 34%.  That's a long way off from the 15% or less that underwriters of even conventional loans want to see.  So we had to focus on getting a cash buyer.  That meant a price reduction to $190,000 after only ten days on the market.

Fifteen days after the price reduction our buyer found us.  A cash buyer offering $185,000.  My sellers snapped it up.  And since it was an investor purchasing the home, they were able to negotiate a rent back until their next home was ready for them.  The condo sold for $185,000 on June 7, 2012.

I imagine there are a lot of buyers out there that would love to live in a Parks at Piedmont condo in Gainesville.  Some may even be getting their hopes up about buying one.  This is where working with a full-time local real estate agent helps.  Agents local to Gainesville who are actively engaged in the business know the pitfalls that are facing certain condo developments and we are keeping close watch on the situation.

If you are interested in buying or selling a Gainesville, VA condo, give me a call for a free market analysis.

Chris Ann Cleland, Associate Broker-Licensed in VA, Long & Foster REALTORS®

703-402-0037, ChrisAnn@LNF.com, www.NVARealEstate.net

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Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Chris Ann

This was agreat opporutnity and thankfully a cash buyer took advantage of it. Looks like it all worked out to everyone's advantage. Good work!

Jeff

Jun 07, 2012 07:10 PM #1
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Chris Ann - Congrats on the sale, and for being a truly competent professional who understands how to manage a difficult situation. Nice looking development, too - we don't see much architecture like that out here in the west.

Jun 08, 2012 09:02 AM #2
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Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

Jeff:  It's a shame that first time buyers that fall in love with these units, who don't have the ability to purchase with 100% cash, can't buy in.

Dick:  They are stacked condos.

Jun 08, 2012 10:00 AM #3
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Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley R since 1976;408-565-8177

Chris Ann,  Solving that problem by finding the all-cash buyer is a job well done.  Good work.  When the HOA dues delinquency problem is eventually resolved and normal financing can resume, the buyer may see a sudden jump in market value of their investment.

Jun 08, 2012 01:46 PM #4
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Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

Lloyd:  I think the looming problem is that while this delinquency problem has been going on for two years or so, the investor ratio is getting high.  If the condo board isn't careful, this will be a  neighborhood forever stiffled by having to deal with cash only buyers.

Jun 08, 2012 01:49 PM #5
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Good Afternoon Chris Ann, Congratulations on the sale. it is always nice when our hard work pays off. Have a great Friday

Jun 08, 2012 02:03 PM #6
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Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

Scott:  It's nice when any deal comes together.  Enjoy your weekend!

Jun 08, 2012 02:12 PM #7
Rainmaker
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Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley R since 1976;408-565-8177

That makes sense.  You're probably right.  That has happened in some san jose condo complexes.  does VA have lenders for "non warrantable" townhomes?  Here's one in CA but I don't know if they're licensed for VA.  Litigation, high HOA delinquencies, high investor ratio are no problem, that's what "non warrantable" means.  But slow, like 60 days slow just for an approval.  the max LTV is 75-80%; 1-1.5% higher interest rate, conservative appraisals, but better than cash especially for higher-priced non warrantable units where there are fewer cash buyers.  I know you closed this transaction but you'll encounter another situation where non warrantable financing may be needed.

Jun 08, 2012 04:04 PM #8
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Chris Ann Cleland

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