I thought I would highlight a house on the higher end that I think is worth a look.
- I have not and I am not actively pursuing this property;
- I have no relationship with the builder or listing agent;
- The listing agent is also the wife of the builder of the house, so you can expect that they have baked in at least a 4% transaction cost into the price.
The house is a beautiful farm house on 3.125 acres in Rosemont.
According to the listing it has 4,059 sq ft finished and 1,359 sq ft unfinished. The county records show 3,399 sq ft finished and 1,673 sq ft unfinished. It is in the best performing schools Murray, Henley, Western Albemarle.
The lot was purchased in 2003 for $225K. That was pre-bubble pricing so I am going to leave it valued as is.
The house was built in 2003 by Skyline Home Builders. I have seen the quality of their construction and attention to detail, and I am impressed by their work. I am going to assess their construction at $110/sq ft for finished and $35/sq ft for unfinished and I am going to use the county measurements for finished and unfinished sq ft.
Improvements Value: $110*(3,399) + $35*(1,673) = $373,890 + $58,555 = $432,445
Depreciation for the last 6 years = (6/30) * $432,445 = $86,489
Current Value of Improvements = $432,445 - $86,489 = $345,956
Value of Land = $225,000
Total Property Value = $570,956
Given that there is a discrepancy of the sq ft I would value this house between $571K - $633K.
Working off the high end of my valuation $633K with 20% down ($126K) and at 6% the loan would cost around $3,036 a month not including insurance or property taxes. Qualifying income would be starting at $110K.
It is a beautiful home with easy access to 64 or 250. This could be an excellent purchase for a professional couple, or a corporate transplant.
I came up with a new metric called the "Gotta have it Premium" which shows the range of the premium that I think the buyer is paying when purchasing it at list price in order to live in that house in that neighborhood. This range is calculated by subtracting my valuation from the listing price.
I am sure this new metric will create some good discussion! :)
Pershing Valuation: $571K - $633K
Gotta Have it Premium: $158K - $96K
What do you think?