Let's continue converastion started in my previous post
Cleveland Real Estate: You can afford it but can you hold it?
Low prices on houses and condos for sale in Cleveland make them apparently more affordable for new homeowners. More and more people are looking forward to moving up as today's market support this idea. Let's talk about luxury homes in Solon, OH.
We have few very smartly designed and very well developed upscale communities in Solon. Three of them have been seriously hit by foreclosures and short sales:
- Thornbury
- Signature of Solon
- Chagrin Highlands.
That creates incredible opportunities for moving-up buyers. Let's review some details.
• Currently there are nine (9) houses in Chagrin Highlands offered for sale via local MLS.
|
Address |
Year built |
Original Price $ |
List Price $ |
|
6224 Arbor Glen Ct. |
1996 |
449,900 |
449,900 |
|
6212 Chagrin Highlands |
1993 |
535,000 |
535,000 |
|
38665 Gaelic Glen |
1994 |
535,000 |
535,000 |
|
39250 Lochmoor |
2002 |
550,000 |
550,000 |
|
38990 Glenlivet Ct |
1992 |
575,000 |
575,000 |
|
38580 Gaelic Glen Ct |
1991 |
780,000 |
680,000 |
|
39755 Lochmoor |
2005 |
799,000 |
729,000 Short sale |
|
39785 Lochmoor |
2003 |
799,000 |
750,000 Short Sale |
|
5980 Glasgow |
2007 |
980,000 |
980,000 |
Median List Price $575,000; Days On Market - 79; Cumulative Days On Market - 213
• One property located at 38881 Lochmoor Dr. is Pending upon closing of sale. List price is $395,900.
4 bedrooms, 4 ½ bathrooms. 3,858 sq.ft. Short Sale.
• Four properties sold in Chagrin Highlands after 04/12/2008
|
Address |
Original Price |
List Price |
Sale Price |
|
6235 Arbor Glen |
294,000 |
254,000 |
255,000 |
|
39061 Lochmoor |
395,000 |
395,000 |
363,000 |
|
39150 Lochmoor |
545,000 |
487,000 |
455,000 |
|
38821 Lochmoor |
599,000 |
575,000 |
550,000 |
Median Sale Price $409,000; Days On Market 73.
Average Sale Price / Average Original Price Ratio = 405,750 / 458,250= 89 %.
• There are currently two bank owned homes located at Thornbury and Signature of Solon.
Address Year built Original Price $ List Price $ 7403 Capillano 2005 525,000 509,000 38750 Flanders Rd. 2005 574,900 564,900
• There were five comparable bank owned properties sold in Thornbury and Signature of Solon after 04/12/2008.
|
Address |
Year Built |
Sq. ft. |
Original Price |
List Price |
Sale Price |
|
|
38495 Flanders Dr. |
2004 |
3,311 |
475,900 |
425,000 |
386,0000 |
116 |
|
7385 Capillano |
2006 |
3,700 |
495,000 |
495,000 |
420,000 |
113 |
|
38550 Flanders |
2003 |
3,921 |
522,000 |
442,000 |
431,000 |
110 |
|
38510 Flanders |
2005 |
3,615 |
449,000 |
449,000 |
470,000 |
130 |
|
38190 Flanders |
2005 |
4,795 |
574,900 |
574,900 |
590,000 |
123 |
Median Sale Price $431,000. Low price/sq.ft = $110. High price / sq.ft = 130.
Bank owned homes currently listed and sold in Solon impact the current market value of comparable homes. Median sale price for the houses built in 2003-2006 was $431,000. Average price per square foot was $118.40.
Average sale price per square foot paid by Solon buyers for the newly built houses in comparable communities can be a solid basis for determination of a true market value of the house if you are buying a foreclosed or short sale luxury home in Solon.
Many families of professionals can afford these houses today. However, reasonable people ask themselves and their Real estate agents the questions:
WHY ALL THESE GREAT NEWLY BUILT SOLON HOMES GOT FORECLOSED?
ISN'T IT BECAUSE PEOPLE WHO COULD BUY THEM WERE NOT ACTUALLY ABLE TO HOLD THEM?
It is so important to double check your holding power when bargaining the luxury home in Solon today. Please take in consideration:
- Real Estate property taxes. Recently built 5,000 square feet house which you can "steal" today for about $570K may have about $18,000 per year in property taxes.
- Utility bills. Oversized home means oversized heating and cooling bills. Period.
- Landscaping and property maintenance cost.
Buy smart, buy responsibly, and buy now. It may be your life-time opportunity. Don't miss it but don't overestimate your holding power.
Few simple rules of investment in Cleveland Real Estate
Are all Foreclosure "Deals" equally great?
Need a good home in Solon?
Want to buy with confidence?
Please call Svetlana 216-548-4663 or e-mail to: Realty@Local-n-Global.com.
Svetlana,
Hope this msg finds you doing well.
Thank you for an outstanding analysis! My wife and I have been studying the Solon mkt for abt 1 month - for a potential "upgrade" - and yours is the most comprehensive MLS analysis we have seen so far.
Since you seem so knowledgeable abt Solon, I would like to "pick your brain" on a few topics.
1) How much further do you think Solon home prices will fall (if at all) after the Spring/Summer? I asked b/c this could keep us on the sidelines. Trying to get a "deal" is like trying to catch a "falling knife." If your timing is off, you can get hurt - loss money.
2) What is driving so many sales in Chagrin? I know if Thornbury there was a criminal issue that created many foreclosures, etc. Do you know much abt the Chagrin community?
3) Seems like the sales of 38881 Lochmoor Dr @$395K (likely lower than that) will put pressure on the other listings. Feels like the ask on many of the homes are a bit higher than what the mkt might bear especially when you consider the number of listed properties.
We are just getting started. Our next steps are to narrow down the neighborhoods we want to shop in and how we buy - regular, REO, foreclosure, etc. Once we get more serious, I'll start engaging more "professional help."
Thanks for your comments,
Delien
Delien - thank you very much for your comment and for the questions.
Regarding Solon homes' prices. I wish I had a crystal ball - I would be of a better assistance in this matter :). However, there are signs that we've already hit the bottom in Solon (see my other post about it). All Solon upscale communities are pretty healthy, alive and well kept by responsible homeowners. We can expect few more foreclosues and maybe more short sales this year however it does not mean that the prices will go lower.
Waiting on the sidelines may be not the best position today. Too many people are there on the same sideline. When all of them start moving, the bidding wars start. We see it already on some of the most interesting deals in Solon. Buying the house is not a pure financial decision, even when you are hunting for the Deal. However it's good to be prepared both financially and psychologically to act fast and aggressively in order to win the best deal.
Regarding Chagrin Highlands I'm going to write the post about it soon. Sale of the house at 38881 Lochmoor more likely will not impact the prices too much as this house is in a big need of repair, remodelling and bringing it back to the adequate condition.
Good luck with your moving up to great Solon home! I will be glad to offer my professional assistance if you need it. Just call 216-548-4663 or e-mail me to Realty@Local-n-Global.com.
Svetiana, It looks like you have a lot of wonderful properties for sale in Cleveland. Looks like you caught an interested eye with your wonderful and informative post.