St John Real Estate Buyer’s Guide

The Ultimate St John Real Estate Buyer’s Guide

Contributing Writer / Jared Warren

As a licensed Real Estate broker on St John for over 20 years now, I have become immersed in this micro market and have experienced most of the variables, challenges and successes that come with identifying, negotiating, purchasing and owning real estate on St John. I’ve served on the Board of Realtors at the St John and Territory level for over 10 years in many roles including President and currently as a Director and member of the VITAR forms committee.

For just about anyone, from the moment they step foot on island the idea about owning real estate here starts to creep into their brain.

A lot of interest has come up lately and the market is active with buyers so if you’ve been thinking about what it means to take the plunge or just curious what is out there, now is a great time to start thinking about taking that next step.

For just about anyone, from the moment they step foot on island the idea about owning real estate here starts to creep into their brain. But how do you turn that dream into a reality? Currently there are 63 homes on the market and actively for sale. On the face, the average price of these homes is just over $3 Million, but in a small diverse market the median price of $1.6 Million may tell a better story. The spread is extremely wide, with the lowest priced home at just $249K and the highest currently listed at $27.99M. No matter which price point you are in there are a few things that will help you pick the right property.

How to Pick the right property?

The value of a property on St John is based on a few key factors and differs greatly from how property is valued in other markets, particularly those in the United States. View is likely one of the biggest drivers of value. It does not make homes with lesser or little view unvaluable, but it can make a lower quality home more valuable if it has a killer view. After view, construction type is a major driver of value. Masonry built homes command a greater value over wood frame homes. Construction quality, Access (paved, or dirt) and neighborhood fall somewhere after that as metrics that effect value, with things like square footage and amenities like pools coming in after that. One important thing to realize is that no two homes are alike on St John. Even homes directly neighboring each other may not be relevant comps. And some properties are of course going to pull more weight from lower ranking metrics to push their value up. Another factor which may contribute to your decision is income. Many homes on St John are already income producing assets so deciding if that is your direction rather than seeking your primary residence is something to consider. If a home is an active rental, either short term or long term, you may have to honor bookings or leases that already exist. Finally, it’s important to know whether Cruz Bay or Coral Bay is right for you. To me, this is more of a lifestyle preference than a driver of value, but it absolutely needs to be considered when searching for a property.

The Buying Process

Once you have identified a property you want to buy, the process is simple and would be pretty familiar to you if you have bought any real estate before. If you are getting a loan, you would begin working with a Virgin Islands based lender. An offer is made via a contract (this can all be done via electronic signatures), negotiated between buyer and seller and finally executed starting a timeline of events such as escrow deposits (typically 5-10% of purchase price and fully refundable), inspections and due diligence periods and closing date. It is typical for closings to be slightly delayed, for closing costs (stamp taxes) to be split and for closings to be handled virtually rather than in person. Closings are handled by Real Estate attorneys in the Virgin Islands, so be sure to expect that as well. Some other things to consider in this phase would be how to handle existing rentals and begin to think about how you intend to manage the property post-closing, especially if you are not planning on living on St John.

Challenges

While selecting a home and making an offer will be a pretty familiar process, Some unique challenges to buying in the Virgin Islands may come up in the due diligence and closing process. For one thing, to obtain title insurance in the Virgin Islands, you must first get or have a current “As Built Survey” This survey shows you where any improvements are on the lot and outlines any issues with the boundaries like encroachments. Due to the extreme nature of the terrain and the quick movement of the bush, a surprising number of mistakes can happen in building that cause title defects which would be brought to light in the As Built survey. Fortunately, our contracts address this possibility and allow both the Seller and Buyer options for resolution. Most deals can be saved and a resolution met with creative easements or land swaps, but it’s something that may delay a closing and may surprise a buyer.

Another challenge which may or may not be unique to St John is bad advice. Folks, do not get your Real Estate advice from your bartender! Ill hedge back a bit, some bartenders are actually licensed Realtors, but I cannot tell you how often this happens on island even at the very high end. I’ve been in numerous situations, selling a multi million dollar home and suddenly the buyer says something like, we had dinner down at “X” last night and the bartender told us…. I understand you’re on vacation and the bartender or boat captain may appear to be an all knowing goddess to you but unless they are a Licensed Real Estate professional, tip and forget it.

Ownership

Once you own a home, care and management of that property will become instantly necessary. If you do not plan on living on island, you will need on island management. This is relevant whether or not you intend to short-term rent and operate a vacation rental. If you are going to rent short term, I strongly recommend a full service, licensed and experienced management company. Our company takes the approach of full service, handling everything from marketing and sales, guest services, concierge, housekeeping, landscaping, pool care, maintenance, repairs remodels and more. If you are not going to rent, you can probably engage with a more casual operator, but I still recommend discussing it with a pro team first. Fortunately, vacation rentals on St John are in extreme high demand, so renting can provide very real income to offset the costs or in the right circumstances pay for your new property.

Some featured listings

SPOTLIGHT ON: L’Autre Monde

One of the most stunning properties on the market right now is L’Autre Monde. The zen spa feel of the expansive outdoor living spaces of this walled in compound are exceptional and the interior space with full AC and back up power further heightens this magnificent villa’s appeal. MORE INFO: https://www.flexmls.com/share/EFxce/300-44-Chocolate-Hole-Cruz-Bay-St-John-US-VI-00830

SPOTLIGHT ON: SEAROCK is one of those must have homes: A solid craftsman built custom villa with big blue views spilling into every room. This conveniently located yet private home has a delicately finished masonry build on the lower level and elegant handmade post and beam design upstairs with high end finishes in excellent condition. MORE INFO: www.stjohnhomesandvillas.com/searock

LAND – Check out this amazing view from this private oversized lot. A small trail is onsite for those who want to get onto the land and imagine their dream home.

MORE INFO: https://www.flexmls.com/share/EFxde/6A-4-St.-Quaco-Zimmerman-Coral-Bay-St-John-US-VI-00830

COMMERCIAL – Unprecedented commercial land (zoned B-3) opportunity on St John with 250 feet of flat public road frontage. This 1.125-acre lot is completely flat and already cleared. Perfect for a multi-use commercial building, boutique hotel or 1000’s of other B-3 zoning uses. There is simply no other business zoned land on currently for sale on St John.

MORE INFO: https://www.flexmls.com/share/EFxe3/8-4-1-B-Carolina-Coral-Bay-St-John-US-VI-00830

I’m honored to be chosen to write this quarterly feature in the St John Magazine and in future articles you can expect other featured listings, more of the pitfalls and unique challenges you may face when buying or selling and updated statistics to keep you informed and help you make the best decisions. I gladly provide decades of on island knowledge in Real Estate, construction, vacation rental management and property care to my clients and would love to help you too with your search and process. However, I would be foolish to omit that there are lots of great Realtors on St John to choose from so you can rest assured that as long as you choose to work with a licensed agent or broker, the professional standards of the Real Estate community are dependable, honest and overwhelmingly cooperative. https://stjbor.com/

PROFILE: Jared Warren

Virgin Islands Licensed REAL ESTATE BROKER
Broker Owner – Unique Island Assets
Former President – St John Board of Realtors
Current Director – St. John board of realtors
Owner – Starlit Escape Villa
Former Director and Vice President – National Inspection Services
Graduate – University of Colorado

Jared was recently interviewed by Inc. Magazine which was also featured in the Huffington Post .

Originally from Colorado, Jared Warren arrived on St John in the Virgin Islands in 1999 as a biologist. While still fascinated with the natural world, he soon realized the need for his expertise on island and left marine biology to focus on his family background in Real Estate, marketing, Construction Management and Building Inspection. Years later he has established himself as a diversely talented professional in many fields and a committed member of the community. As a licensed Real Estate Broker and owner of Unique Island Assets, an expert in marketing, a licensed commercial 100 ton captain, and an artist and musician, Jared has enjoyed tremendous success on island combining his multitude of skill sets to Create the most comprehensive Real Estate Brokerage.

Besides simply selling homes, land, condos and commercial property, Jared coupled his experience in Real Estate with his roots in Property Management and has continued to carefully grow UNIQUE ISLAND ASSETS and St John Homes and Villas. By creating success at numerous short term rental properties and focusing on high-level, detailed, personal property management, he is dedicated to be the most accountable and professional Real Estate and property management company on island. Jared’s professional skills through real estate, hands on skills through years of construction, building inspection and tropical landscaping experience ALONG WITH “On Island” knowledge and extensive training in customer service, make him an invaluable resource on anything related to Real Estate on St John and in the Virgin Islands.