State of the Real Estate Market in Frenchmans Reserve January 18, 2011.

State of the Real Estate Marketin

Frenchmans Reserve

January 18, 2011

Disclaimer

About Me

Frenchmans Real Estate was formed in 2009 to assist buyers and sellers with professional, experienced real estate

services in a community we know well.Every one of us lives in Frenchmans Reserve!

I am the ONLY REALTOR serving on the Toll Bros Advisory Board who lives in the community. This gives me

preferred access to potential buyers through the sales office. We work on a cooperative basis with the developer.

I sold and/or participated in the sale of over $3 million in real estate sales in 2010 and brought another $1.5 million under

option for future sale.

It’s a BUYERs Market!

• Current values should be based solely on homes SOLD, the current inventory, and the overall turnover of homes within the community.

• Sellers currently outnumber buyers by a significant degree.

• The competition for sales is also influenced by the actions and continued presence of the developer.

Sales in 2010

• There were 15 resales within the gates of Frenchmans Reserve in 2010.

• There were 15 NEW homes sold by the developer/custom builders in 2010.

Homes Sold in 2010 by Street

Resales New Homes TotalAbondance 6 0 6Cote D’Azur 0 9 9Montant 2 0 2Charroux 0 5 5Savoie 5 0 5LesJardin/Floret 2 0 2Hermitage 0 1 1

Total 15 15 30

2010 Resales by Model

• Playa Riente 2

• Carrington 5

• Montecito 3

• Casa del Sol 4

• Mallorca 1

Average Selling Price

• $962,417 in 2010. These homes sold for an average of 86% of their list price.

• Versus $1,179,428 in 2009

• Decrease of 18%

Startling Statistic!

The highest priced resale in 2010 was $1,200,000

The highest priced resale in the last two years was $1,650,000

There have been 2 completed sales so far in 2011

New Home Sales in 2010

• Fourteen Toll Brothers homes and One Custom Home Sold

• Average Selling Price of $1,079,794 (excluding custom home)

What is for Sale Now?

Models/ Quick Delivery 5Contingent/Pending 4Other Resales 50

This is approximiately 16% of the total homes owned.

Average Asking Price

$1,426,817

There are currently12 listings priced under the 2010 average selling price of $962K.

Short and Distressed Sales

A short sale is defined as a seller who is trying to sell a home wherein the expected sales price or proceeds are less than is

owed on the home to creditors.

Short Sales often “poison” the market for a period of time, as appraisals and comps are often skewed by short sale pricing.

Short Sale property is often in bad condition.

Bank Owned property is different from a Short Sale in that the mortgage holder has taken legal action to “repossess” the

property and sell it, usually under a court order.

Short Sales Currently Listed

• There are 7 homes currently listed as Short Sales in Frenchmans Reserve

• There is one pending sale of a court ordered sale/auction.

Current Homes for Sale by StreetResales Only

• Cote Azur 1

• Abondance 5

• Montant 11

• Charroux 4

• Savoie 12

• Les Jardin/Floret 7

• Hermitage – Toll 2

• Hermitage – Custom 8

Resales for Sale by Model

• Carrington 7* Playa Verde 3*• Casa Bendita 1 Segovia 2• Casa Del Sol 3 Villa Real 1• El Mirasol 3 Villa Rosa 3• Mallorca 2 Custom 8*• Montecito 3• Playa Riente 14* *plus a Model/QD

Other Sales Competition:

The Builders!!

20 Heritage Lots remaining10 Custom Lots Remaining

Phantom Market

• There are several residents waiting to sell if the right sales environment were to return.

• There are at least 2 homes with expected bank/lender action pending.

• There are close to 10 homes currently rented, likely for sale in an improved market.

How Do We Compare with Other Neighboring Communities

• Frenchmans Creek:

15 houses sold in 2010 at an average

Price of $1,073,894

There are currently 37 For Sale

Mirasol:

81 houses sold in 2010 at an average

Price of $861,896

There are currently 146 For Sale

Where are We Now?

Most Frenchman’s Reserve Homes have lesser values than when they were purchased (early buyers excluded).

There is a 3 year inventory of homes in the current market conditions.

New home sales are proceeding as buyers gain incentives (club membership, impact glass, etc) to purchase.

Low interest rates are somewhat offset by difficult lender requirements.

No more Signature lots remain, reducing competition for

those homes.

What’s Ahead

Developer Continues to Sell with reduced pricing as they get closer to close-out.

Sellers will have to have patience to sell or accept lower sales proceeds.

Savvy buyers will seek value added in what is still an attractive community.