What Does $1 Million Buy?

I’m often asked how real estate values vary across our metro area. One of the best ways to do this is to compare homes for sale at a relatively fixed price. This type of comparison highlights what distinguishes each neighborhood and helps you to understand the forces that impact property values.

I set out to investigate neighborhoods in Fall 2009 in Arlington, McLean, Reston, Vienna, and Great Falls with a selection of properties priced between $950,000 and $1,050,000. The nearby map shows the stops on my tour. The real estate market is dynamic, and everything is subject to change. Before beginning your home search, consult a real estate professional to gather information on properties currently for sale. My purpose is to show representative neighborhoods to better understand the Northern Virginia real estate market. If you’re an unrepresented buyer and need help finding a property, just get in touch. Click on a picture for a bigger view, and use the arrows that appear about mid-way on the sides of the photo to scroll through the series of pictures.

My first stop is Jim Abdo’s Wooster condo development on Clarendon Boulevard in the Rosslyn section of Arlington. The nearby picture shows off the expansive windows, and reclaimed 140 year old brick in select areas completes the Soho loft feel. There’s an underground parking garage if you must have a car to get around, but the close-to-everything location via the Metro means you might not need one. Sub-Zero and Wolf appliances plus Waterworks plumbing fixtures distinguish the interior spaces. This project shows off a great choice for a high rise condo. You can live close to DC and within walking distance to everything else and get the features that have become staples in a luxury residence and stay within our price range.

It seems like everything is within walking distance in this part of Arlington. In 2005 the American Podiatric Medical Association ranked Arlington the the most walkable US city. It’s also very bike friendly. More recently CNNMoney.com ranked Arlington the 2nd best place in the US to be rich and single. Arlington is not just a city of high rise condos, but includes vibrant neighborhoods full of single family detached homes, including many in our upper-end price range.

One such neighborhood is Country Club Hills of North Arlington, an area that has caught the eye of the Washingtonian. A number of homes here are well above my price range for this post, including several in the $3 million range. It’s always a good idea not to own the most expensive home in the neighborhood to maximize appreciation potential. Property values here reflect the fact that there is continued investment, both new construction and remodeling. Older homes that have been updated or remodeled can be found that meet our price target. We can trade some of our high-rise urban feel for an older home with a private yard and a little bit longer commute to DC and stick to our price range.

My next stop was the new Park Crest building, a 19 story tower in McLean, near the heart of Tysons Corner. For most shopping trips here, a car is practically a must-have, but on site there’s a Starbucks and an open-all-day Harris Teeter food store. McLean’s population is only about 20% of its neighbor, Arlington, but with the shopping center at Tysons nearby, there’s no lack of retail or dining opportunities. It’s possible to find a 2 bedroom unit with 2 1/2 baths and be within our price target. Many properties are in some type of association structure that provides a range of services for a fee. Since these fees can impact how affordable each property is, you’ll want to be sure to include them in your shopping comparison.

McLean is not all luxury high rises. In fact, detached single family homes are more the norm. Brick colonials, many on slightly bigger lots than might be found in Arlington, fit our price range. It’s not uncommon to find larger homes, on average, compared to Arlington at similar price levels. For the neighborhoods a bit north of the Park Crest, we’re still quite close to all of McLean’s diverse retail offerings. We just don’t have Arlington’s “walking distance” closeness. Proximity to Washington is a big driver of Arlington home values. McLean is still close too, but traffic can turn that extra distance into a slightly longer commute if Washington is your work destination.

Heading west to Reston, there’s a mix of housing options and popular shopping venues like the Reston Town Center. Reston was one of the original planned communities in the post-World War II era, hailed by Wikipedia as internationally known for the changes it introduced to urban planning. Since we’re further away from the District, housing demand is now influenced heavily by the area’s thriving technology companies. We’re now about a 20 mile drive to Washington DC, and in light traffic (not rush hour!) about a 10 minute ride to Tysons Corner.

For the buyer that is seeking a high-rise luxury unit and needs more space, Reston may have what you’re looking for. For example, the Paramount Building on Fountain Street offers larger units, some with 3 bedrooms and 3 baths, though most are outside of my price range. Sometimes you have to look a little above a target range to understand the trade-offs in home shopping. One of Reston’s guiding principles is to provide the widest range of housing options and prices so that residents can live in the same neighborhood for most, if not all, of their lives. Managing all of this is the non-profit Reston Association, which provides government-like services for an annual assessment. Membership in the Reston Association is mandatory for all residential property owners. Benefits include an extensive network of trails, neighborhood swimming pools, tennis and basketball courts, and lots of open space.

Reston has its share of spacious single family homes. Brick colonials are available on just under 1/2 acre of land with 4 to 5 bedrooms and 3 1/2 baths in over 3500 square feet of living space priced toward the lower end of our target price range. Generally speaking, as we head further west, homes are available with more living area but still allow you to buy toward the lower end of your target price range.

Bordering Reston is the town of Vienna, one of the places where our housing options narrow. The high-rise condos that we considered just don’t exist in Vienna. Similar to Reston, brick colonials with more space on bigger lots match our price level, more evidence that larger homes are available in our price range as we head west. Land costs, one of the biggest components of housing cost, decline as we travel away from the city, affording builders more resources for the “sticks and bricks” of the house itself. In the past, it has also taken more space and more amenities to lure buyers to accept a longer commute to Washington DC. This home carries monthly association fees of $100, nearly 2 1/2 times those of its Reston neighbor. Still, that’s not an overly burdensome expense, especially considering the home’s price tag.

Vienna is about 1/2 the size of McLean and offers a small town feel while being close to the shopping centers of Tysons Corner. Washington DC is just a short ride from the key Metro station on Nutley Street. One increasingly popular housing decision in Vienna is to live close to the heart of its own central business district. New homes, particularly in the Craftsman style, are springing up on infill lots within a short walk to Vienna’s shopping areas. Lot sizes closer to the town’s center tend to be smaller, closer to 1/4 acre in size, with homes offering 3000 square feet or more of living area. It’s possible to have a new home with a “walk to the store” location.

Rounding out our tour is Great Falls, the smallest community on our list, with about 10,000 residents. The town takes its name from the Falls at the Potomac River. There’s not a high rise building to be found, even in the quaint shopping area of mostly local shops on the Georgetown Pike. There aren’t many man-made sidewalks in Great Falls. Homes in the town range from about $500,000 to well over $4 million, but we’ll find many to choose from in our target price range. What attracts people to the town are the large brick colonials with ample room and big yards. Most have 2 acres of land, which is a typical minimum in Great Falls. The lot size, combined with the rolling, wooded terrain, provides more privacy and gives the town it’s unique charm.

That wraps up our tour of properties in the $1 million price range. We’ve looked at 3 high-rise condos and neighborhoods across 5 towns, uncovering many of the trade-offs that buyers in this price range face. If high-rise living is right for you, you can buy a condo with a close-in location and even find stylish, new construction at this price level. If having your own backyard is more what you’re looking for but still have to be very close to Washington DC, older homes are more typical of what you’ll find on the market. Home size and the degree of updating that has taken place over the years will vary widely, so you’ll need to be a savvy shopper. If you can accept a longer commute to the District – or are commuting in a different direction – you can find even more spacious homes that present their own range of choices.