Braemar Condo Quarterly: October-December 2018 (4th Quarter)

Braemar Condo Quarterly: October-December 2018 (4th Quarter)

While I am nestled safe and sound in my own Braemar home, snow accumulating outside in our first 2019 snow event, I might as well share one of my Braemar market reports.  This month all types of homes are due for updated reports, but since the homes featured in the quarterly reports only get updates four times a year, I thought I would start there. The first in the Braemar quarterly reports, which is this one, focuses on the sales of Braemar condos, also known as the Barrhill at Inverness Village Condos.

There were two condos in Braemar that sold in the fourth quarter of 2019.  They were both two bedrooms with one full bathroom and one half bathroom.  They each also had a garage.  There were some differences in final sold prices, one being $264,000 and the other being $272,000.  Details on the sales are below:

Taking these two sales and including them in the last year’s worth of Braemar condo sales, the numbers I like to see are the six and twelve month sold price, seller subsidy and DOM, or marketing time.  That last number is going to be off with the change to the Bright MLS that our area has undergone.  Our previous MLS stopped counting days on the market as soon as you went under contract.  Not Bright.  Bright only stops counting days on market when all the contingencies to the contract have been removed.   That change to the new MLS happened in November.  Let’s see how it affected our six month values compared to the twelve month values.

Given the explanation above, let’s look at the marketing time comparisons first.  I am not surprised to see higher days on market in the six month average and median values compared to the twelve month values.  We’ll only have the best idea of marketing time when we have ALL of our data coming from Bright MLS.  That won’t be until the first quarter of 2020’s report.

The sold prices in the six month average and media are both above the twelve month values.  This is great news.  Values are increasing.

Seller subsidy (closing cost assistance to buyers) has gone up in the six month average compared to the twelve month average, and is the same in the six month and twelve month median.  This means sellers have been giving a bit more in closing cost help more recently.

If you placed your Braemar condo on the market, priced to current conditions, you could expect to have a contract with all the contingencies removed within about forty days.  You could also expect to give about 1.5% of the sales price in closing cost help.

Stay safe during this snow storm.  If you don’t need to go out, don’t.  If you get bored and want to talk real estate,as your Braemar Real Estate Resource, I’m here to lend my expertise.  Since 2005, No One Knows Braemar Better!

Chris Ann Cleland 

Associate Broker-Licensed in VA

Long & Foster REALTORS®

703-402-0037, ChrisAnn@LNF.com

www.SellingBraemar.com

 

 

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How Will the Change of MLS Systems Affect Braemar Market Data?

How Will the Change of MLS Systems Affect Braemar Market Data?

In November 2018, our area switched to a new MLS system known as Bright.  Previously, we had been using a system known as Matrix.  These systems largely work the same, but what may affect the market data I share with you in my Braemar market reports is how Bright counts “days on market” differently than Matrix.

In Matrix there were three statuses that denoted when a property was under contract.  All of them, stopped the days on market counter, whether there were contingencies in the contract accepted, or not.  Bright does not work that way.  In Bright, our new statuses are: Active Under Contract or Pending.  Active Under Contract is to be used to denote when a listing has gone under contract, but there are still contingencies in the contract that may cause the deal to fall through.  These contingencies could be anything from home inspection, appraisal or even home sale.  It isn’t until all contingencies to the contract are removed that agents are to note the listing as Pending, where the days on market counter stops.

There are two problems we are facing.  First of all, if every agent followed the rules of the statuses, we would have a different measure when comparing to older sales.  And my market reports pull data up to a year away.

The second problem is that some agents will not obey the new rules of the road.  They feel cheated that their own marketing stats are being  skewed.  If you get a property under contract in three days, but it takes twenty-one days to remove the contingencies, the days on market counter is going to reflect twenty-four days that the home was marketed.  The solution that many agents are using, despite Bright rules is to put a property straight to Pending status.  What’s the big deal?

Pending properties are not able to be shown.  And as a Braemar Listing Agent, I can tell you that as our market contracts and buyers begin to have more negotiating power, it is going to a very good thing to have back up offers.  You can’t get those without the ability to show your home to another buyer.  And if you never use the Active Under Contract status, for exactly that purpose, you can’t allow showings that could result in a back up offer.  In December 2017 I saw the importance of a back up offer keep my sellers having to give anything additional in assistance, or do any repairs, when the primary buyer stalled the list of repair requests to land two days before Christmas, which put my sellers on a three day turn around.  The back up offer gave them the leverage to say no and not have to do, or give anything additional.  Active Under Contract, in my professional opinion, should be embraced.

This is a complicated issue, and is further complicated by the problem that is always forefront in the real estate industry:  

NOT ALL REAL ESTATE AGENTS FOLLOW RULES, REGULATIONS OR LAWS.

As your Braemar Real Estate Resource, I am here to tell you that my business is operated above board. Will I still be able to tell you how many days it took me to a property under contract?  Yes.  Will just involve counting the difference between when the property was listed and when it went under contract.  For whatever reason, that seems too complicated for some agents.

When it’s time for you to sell your Braemar home, give me a call.  I will put your needs ahead of my own each and every time, including my MLS marketing days numbers, because what is best for you is all that matters.  Since 2005, No One Knows Braemar Better!

Chris Ann Cleland 

Associate Broker-Licensed in VA

Long & Foster REALTORS®

703-402-0037, ChrisAnn@LNF.com

www.SellingBraemar.com