Thursday, July 26, 2007

Trend: Phoenix Condos= Backing out. In Arlington Va

A ton of people have been emailing me about the New Phoenix Condos in Arlington Virginia (which just started closings) after reading my blogs about: IO PIAZZA. Possible Class Action? Default? Deposits + Interest and Zoso Officially Drops out of the Arlington Condo Market

So I thought I'd write about The Phoenix in Clarendon Virginia specifically.

Ok, so here is the scoop... oh wait, before that, how about a nonobligatory donation of $500 to the St. Bernard Pr0ject (Katrina relief)? All I'm saying, is if this blog saves you at least $10,000 in one form or another, will you give a donation to them? Yes, great, No? Shame on you!

First off, a little "Wow! How did you know!?" mind reading...

So you are in a contract to buy a Phoenix condominium and you thought... "Why don't I call and pretend to be a prospective buyer and see what the units are going for!!!!!!!!!!!!"

Low and behold... they are selling for MORE than your contract price! You are rich!

Yet you wonder why they aren't advertising, and how are they able to sell units for a premium in this marketplace. Well, I'll tell you why... Probably 90% of their calls today are people FAKING as prospective buyers. They sniff you out like a 10 year old sniffs Elmer's.

If you were trying to sell a ton of units to people under contract for 2 years, wouldn't you artificially keep your prices HIGH until they all closed?... and then after they close, start advertising your blue light specials!

Yes, my prediction is that after the current contracts close, the prices will fall and get more in line with other available units on the market, like at Clarendon 1021 Arlington Condo.

So you think you have two options...
1) Close on your unit at the current price and hope that you don't go bankrupt like 5 people over at 1021. Or hope that you can sell in 2 years and break even. Maybe. But a very possible, maybe not! (especially after those damn Realtor fees, check out Go FSBO! Save $20,000!)

2) You walk away from your $25,000 deposit.

I say you have a few options, but it will cost you a few bucks (but nothing compared to your options above)!

  1. Get a good lawyer. I don't care if you are a lawyer and you have read the contract and there is no way out, get a lawyer that knows specifically about new constructions.

  2. Get your own independent appraisal! What you are gonna use the condo recommended lender, who will use a lender recommended appraisal? If you already got one, look at it. I won't say they are fraudulent, but how about "highly suspect"

  3. Renegotiate. Oh, you tried? Of course they will say no. Even if you pant and yell and scream. For this, please see #1 above.
And for all of you that bought these places without a Realtor, can you at least stop and recognize that we are not as worthless as you initially thought? The cost is the same to you, yet you figure, "I'll just walk in and sign the papers, I don't need no stinking Realtor."

Best of luck, if you need the name of a lawyer or appraiser (no I don't get kickbacks, but I can guilt you into giving a donation as I mentioned above) please send me an email and post a comment about your situation (don't put your email in that comment).

Also I encourage comment postings so that others can be kept in the loop. My other Io Piazza blog had many conflicting comments, so lets get a good discussion going here.

- Written by Frank Borges LL0SA- Broker/ Realtor

(please email me typos, I don't like looking dumb, oh and sign up for new blogs via my main blog
Keywords: 1020 N. Highland North Clarendon 1021 Zoso Mcwilliams Ballard ed peete The Phoenix at Clarendon Metro 22201

Tuesday, July 3, 2007

IO PIAZZA. Possible Class Action? Default? Deposits + Interest

Apparently IO PIAZZA, a new construction Arlington Condo in Shirlington, is claiming to not be under contract for sale of the entire building (initial reports said they were, but that deal, if any, might have fallen through like other nearby deals). Here is the May 2006 blog about Io Piazza rumored to be under contact.

Meanwhile, they refuse to close on units that are under contract (probably since they are still trying to sell the building) and they are refusing to consider themselves in "default" which would trigger a 2% penalty on the deposit. The total amount might only be a couple of thousands of dollars, and I guess they figure it isn't worth hiring a lawyer for such a small amount.

But if we get 5-25 people together, the legal fees will be very small and everyone might be entitled to get their deposit plus interest.

Please contact me if you have a contract at Io Piazza (and other new construction condos like Eclipse, Phoenix, Zoso)

Written by Frank LL0SA- Broker