A custom fish tank, an illuminated bar, and TVs built into the bathroom mirrors are only the start of a long list of sleek upgrades made at this condo in Arlington.
The owner of this Gaslight Square 2-bedroom spent over $500,000 in upgrades to the condo (Editor’s note: The article says $200,000 in upgrades. Other sources have claimed it to be closer to $500,000). That figure may sound like a lot, but when you just won $68 million in the lottery, what’s a measly .73% of your winnings?
The condos at Gaslight Square are some of the nicest residences in the area. This type of one-of-a-kind renovation was sure to vault the 1,922 square-foot condo to the highest-priced unit in the community. But how do you even begin to price out the upgrades?
The condo is worth much more than any current Gaslight Square unit, including the new construction condos in the community dubbed, The Select at Gaslight Square. But after surpassing those values, the tricked-out penthouse is headed into unchartered territory.
Prior to this listing, the most a Gaslight Square condo has ever sold for was $1,389,900 in October 2014. In March of 2015, the uber-renovated unit at 1700D Clarendon Blvd #141 hit the market for an astonishing $2,395,000. This price would be significant for Turnberry Tower, let alone Gaslight Square.
The results were what you would have expected.
Setting the market is a difficult task to undertake. You need the right market, the right buyer, and the right property. Gaslight Square is unique because it does not offer a lot of amenities. But that’s what some residents like about it. The community is not in a sexy location. But you can still easily walk to two Metro stops. And while the unit was completely custom-renovated, some upgrades may not be to the next buyer’s taste.
The property sat on the market and underwent multiple price drops. By July of 2016, just over a year since the property was listed, the home had dropped in price by about $300,000 down to $2,089,000. After missing out on the spring and summer market for 2016, the property was taken off the market.
The condo was relisted in June 2017 for $1,800,000, nearly $600,000 less than the original list price two years previously. After a (relatively) short time on the market, the condo was put under contract in the last week of July. The home is set to close in mid-September.
Most homes in Arlington sell for 96% – 99% of the list price. Even though we don’t have the final sales price, if we used the new list price of $1.8M in this equation, then this home went under contract at about 75% of the original list price.
Trying to accurately price the market with zero comps to go by and extensive renovations is an arduous task. If you are a seller, you need to walk a fine line of not out-pricing the market but still putting a premium price tag on the renovations that were completed.
Hindsight is 20/20 and it’s easy to look back on this condo for sale and pick apart what the seller should have done. Instead of picking apart pricing strategy, marketing strategy, or anything else, let’s use this as a case study moving forward.
The right renovations will add a tremendous amount of value to your home. You should expect to price your home at a premium if you have made significant changes. You should also be keenly aware of the market you are looking to attract.
As the saying goes: the market is the market. Your home is only desirable if it’s priced accordingly and there is a suitable market for your offering. And if you are trying to outprice the market and reset the current demand for the type of inventory you are offering, good luck. You will need it.
Photos via MRIS
Property listed by Long & Foster Real Estate Inc