The information below was shared in another forum and we were granted permission to publish it here. A big THANK YOU is owed to the individual who shared this with us! A couple of key things I want to point out. First, there is an admonition to be cautious about “hypberbole” and I think we all, especially these blog postings, need to adhere to that. Second, is the plea to share. The more sharing of information as we move forward the better off all parties, buyers and the Vue, will be. Third, the post mentions that the Vue pre-construction buyers are in a “different place” than new buyers. We are going to need to explore that in more detail in future postings. So on to read the post!
We were told that the initial phase of closing letters were sent out this week with closings to start on Sept 16th, so we should be hearing about appraisals very soon. I looked at the vuebuyer blog and, using a calculator, determined that the average price in the Avenue for the 13 units that closed in 2010 was $282/sqft., not $250/sq.ft. as a previous poster stated. (I think we need to make sure that our numbers are accurate if we are going to present arguments for price reductions with MCL; things are bad enough that we need to seriously avoid hyperbole.) That equates to about a 30% drop, if the starting average of $400/sqft is correct.
With the real estate market as bad as it is everywhere in Charlotte, I think we will find that the VUE will have to drop prices to rational 2010 levels in order to sell their units on the open market. If Royal Court and Metropolitan are models for how many developers and their lenders work these days, then the price drop will occur after the pre-construction buyers close. However, we went to evaluate The Madison during it’s open house last weekend and were amazed at what we found. The broker over there, Randy Cernhorsky of McDevitt Agency, told us that prices have been dropped an average of 30-35% from the initial offering several years ago. For example, there is a gorgeous unit with marble floors, city views, etc. at $750K for 2890 sq.ft. All units (ranging from 1775 sqft to 3595 sqft and from $399K to $1.275M) have been placed on CMLS so anyone interested in calculating prices can see the range in there.
We are in a different place than walk-ins as we have substantial deposits (10%-15% of 2006 prices) and have waited a long time for this building to be built. I hope this forum stays active and everyone publishes their appraisal information as they receive it so we can all have a good idea as to where the true market is for the VUE.