Thursday, October 2, 2008

What Does a $1M Listing Look Like in Charlottesville? - 517 2nd Street NE

Here's a diversion before tomorrow's House vote on the Bailout, which the Senate voted "For" last night.

You have to appreciate the optimism of this new listing, which showed up a week ago in the middle of the Credit Crisis. P
erhaps they believe that what happens on Wall Street does not affect Charlottesville, following the lead of CAAR CEO Dave Phillips.

Phillips isn't an economist, nor is he a Realtor, but when he made this remark last week, it generated incredulity, anger, and many comments about Bubble pricing.


MLS #457856

517 2nd Street NE
$995,000.00

2 Bedrooms, 2.5 Baths,
2,414 Sq. Ft.,
6 rooms total

The property falls into several niche categories: the $1 Million property; the necessity for a jumbo mortgage; the "modern" house; the need for only two bedrooms; no need for a yard.

The amount per square foot: $417.00.

History & Transfer:
Built in 1990
Sold in 1998 for $250K
Current Asking: $995K

This is a rise of $745K, or 300%, in 10 years. Is the rise due to aesthetics alone?

North Downtown is a nice neighborhood, but the density of residents is heightened by the presence of several condominium developments.

The listing notes that Richard Guy Wilson, Commonwealth Prof of Architectural History at UVa, called 517 2nd St NE "a masterpiece." But the listing gives no context.

Here's the context: the house was mentioned in Buildings of Virginia: Tidewater and Piedmont, published by the Society of Architectural Historians.

This is the mention, in its entirety, on pg. 147:

Van Groll House, Built 1990, Architect: James Tulley

"The very modern Van Groll House is International Style, or, more specifically, DeStijl, in its massing. The owner [not the current seller, but the Van Grolls - eds.] has a significant collection of De Stijl furniture. Tulley, who taught at the U from 1968 to 1994, was perhaps the most accomplished modernist to practice in central VA. He designed a number of important houses, most of which are inaccessible; hence this is a chance to view a real masterpiece."

You can read about the De Stijl movement, which informed the aesthetics of this house, here. (link has example of colors, not great erudition, btw.) For more about the neighborhood, click here. To try to find information about James Tulley, click here.

A potential buyer will note that the City Assessor gave this place an assessment of $650K, which is $350K below the Asking Price.

Here's the Mortgage Math, courtesy of US Bank Mortgage Calculator:

Loan amount - $895,000.00 (10% down)
Term of loan - 30 years
Interest rate - 7.29% (Current 30 year fixed Jumbo rate; changes daily)

Monthly payment - $6,129.78

Total interest - $1,311,719.04

Total payments - $2,206,719.04

Add in yearly property tax, property and mortgage insurance, and the figures are even higher.

10 comments:

Anonymous said...

OMG!!!! Just let me run and get my checkbook. This one's another steal.

Anonymous said...

hard to believe BAR approved this. i guess the the stamp of approval of UVa goes a long way.

The Upstart said...

I walk by this house all the time and wonder about it. Thanks for the info. Good luck to the sellers. Their optimism borders on stupidity.

liam said...

Tulley =

"...the most accomplished modernist to practice in Central VA..."

as if this area is known for its diversity of architectural styles?

is this why i can't find any info on the architect on google?

brooklyn bob said...

It's an eyeroller, isn't it?

Anonymous said...

I walk by this house everyday going to work. I thought it was a typo when I saw the asking price. At the assessed price it would be a nice house that would still sit for a while - but a $1M!

This must be the thinking:
-find buyer in this economy with capital
-convince them to turn liquid asset into cement
-and convince them that there is $300,000 more of worth in the house than the city assessor thinks in the worst real estate market of the decade

One Word: Genuis

sebastian said...

the owner/listing agent seems\ to think that Richard Guy Wilson's "assessment" carries more weight than the City tax assessor's office, which as in any city is already a greedy hog.

nobody's assessment carries any weight these days except for a buyer w/cash to blow and/or financing

buyer: name your price

Ben said...

http://www.503rialto.com/

Look at this asking $400 / sq. ft. and you have to shower on your knees.

http://503rialto.com/house/house47.jpg

Janet said...

I think there's something else going on with this house. Isn't there going to be a huge new house built right next door - one that the homeowners on the street all opposed because it would be too big? I wonder if any potential buyers know about it.

http://www.dailyprogress.com/cdp/news/local/article/big_house_on_2nd_street_gets_councils_ok/26426/

Real C'ville - The Bubble Blog said...

Janet,

Thanks for adding that link.

In the post, where it says "For more info about the neighborhood, click here" we list this link:

http://www.charlottesville.org/Index.aspx?page=2281

It's a City Council meeting where the new house is discussed.