Our Monthly Real Estate Update for the North Atlanta, Lake Lanier, and North Georgia Area!

This is our last update for 2013. Thank you for a successful year! If you are in the North Atlanta area, Lake Lanier, or North Georgia area, please look us up. www.randywellsteam.com http://www.icontact-archive.com/yiOThMH64xldx9FOWSbirLWk2f5QXs2H

Sorry But You Have Closed

I write this brief blog based on my experience representing a buyer, a seller, and purchasing my own home. You close on your home, move into the home, and find a problem. What do you do? Recently I closed on a home representing the seller: The buyer had the home inspected. My seller complied with the inspection report and had items repaired. Seller provided buyer with all receipts. The buyer had concerns about the roof. My seller provided the buyer all receipts showing recent repairs. The buyer's agents did a walk through to confirm all repairs had been made. The buyers did a walk through the day of closing to check the home. Closing proceeded normally. The next day I received an email from the buyer's agent saying that the home was filthy and there appeared to be roof issues. Two weeks later I received another email from the buyer's agent showing me a roof leak in the attic. The home has closed. My seller is not under any further obligation to the buyer. My thoughts: Regardless of a proper home inspection, due diligence on the part of the buyer, and their agent, homes can still have problems. I would consider buying a warranty for the home. I would also make sure I had a very thorough home inspection. Home inspectors cannot see everything but I have seen buyers go for the lowest price inspector instead of the most experienced. My seller did not do anything to mislead the buyers. Unfortunately the buyers, and their agent, felt differently. It was a bad situation but: Sorry we have closed

Know Your HOA

If you are buying, selling, or living in an Atlanta area neighborhood, you are familiar with a Neighborhood Homeowners Association. (HOA) The HOA is a fact of life. The intention of the HOA is simple: •Keep the integrity of the neighborhood •Have a written plan for violations of covenants •Promote transparency of finances •Help to keep home values up I live in a very unique neighborhood. The developer is the architectural committee. He approves new construction and improvements to existing homes. He also owns the common assets including the pool, tennis courts, and pavilion. We have an elected board. They make covenant decisions, financial decisions, and make more day to day decisions. We have a management company. One hour away from my neighborhood we have a professional management company. They send letters for violations and provide legal help Confused? You should be because the majority of my neighbors do not understand this very unique situation. And in many cases they do not care. Moral of this story: Your house represents your largest investment. How your HOA performs will have a great impact on your investment. GET INVOLVED, STAY INFORMED, & DO NOT BE AFRAID TO ASK QUESTIONS! If you find yourself in the North Atlanta, Lake Lanier area give us a call. We are The Wells Team of Keller Williams Community Partners. www.randywellsteam.com

New Lake Lanier Listing

Take a look at our new, deep water, Lake Lanier Listing

Selling Your Home, Back to Basics

We are nearing the end of a very busy 2013 housing market. What a change from previous years! Even though houses are selling at a much higher rate than last year, I need to caution the sellers. The selective buyer is alive and well! They watch HGTV, keep up with the latest trends in design, and have particular criteria. There is also new construction available which is used as a benchmark. Preparing your home for sale is still a crucial part of the marketing process. Putting a little money into the home will help sell it that much quicker. Interior paint in neutral colors New hardwoods, carpet, or other updated floor coverings Latest counter tops or fixture To the sellers: Put yourself in the situation of a buyer. Look at your home in their eyes. Be willing to invest a little in order to sell your home quicker. Work with your real estate agent not against them. Their advice is based on experience. GO BACK TO BASICS! If you are in the north Atlanta area look us up! www.randywellsteam.com

IN THIS MARKET DO YOU HAVE YOUR HOME APPRAISED?

Just attended a continuing education class hosted by DS Murphy and Associates. They do appraisals, as well as, consultation appraisals. There is no doubt that the Atlanta metro market has seen a well deserving swing upwards in pricing. What that has done for homeowners is give them a sense of optimism. It has also made some homeowners revert back to unrealistic expectations. Despite the climbing prices, we are still below prices of 2007, when the market started its considerable decline. As agents we are finding ourselves in situations where the homeowners are putting our market analysis to the side. We call it yeah....but syndrome. In other words, yeah I see the market in my neighborhood BUT.....(you can fill in the blank). This might be a good time to consider having an appraisal done on your property in order to get an unbiased opinion on your homes worth. If the homeowner truly believe that his home is worth more than the market he should welcome an appraisers expert analysis. At the end of the day price still drives our North Atlanta market. If you are priced above the market, you receive less interest, and no offers. Potential buyers do not believe you are motivated to sell. The Wells Team represents our sellers to the best of our ability. That includes giving them expert market analysis. As a homeowner remember this: The real estate agents do not dictate the market If you doubt you agents price analysis then call in an appraiser. If you are in the North Atlanta, Lake Lanier, or North Georgia area look us up. www.randywellsteam.com

Do Garage Door Maintenance

Some words of wisdom from my Dad: Be a good husband and father Be kind to other people Tighten down the nuts and bolts on your garage door????? I happened to look at my own garage doors today and noticed how many nuts were loose. Matter of fact a couple of the nuts were missing. Lack of maintenance could cause problems with the door and potential damage to the door opener. So this weekend change your clocks, change the batteries in your smoke detector, and tighten the hardware on your garage door. Thanks Dad! If you are in the north Atlanta, Lake Lanier area, come see us.... www.randywellsteam.com

Is There a Time Not to List Your Home???

It is that time of year when I hear the following from our clients: • Time to take my home off of the market. • Don’t want my home on the market during the holidays. • Nobody looks at homes this time of year. • I will wait until spring to relist the home. I decided to run some statistics from my home county, Dawson county. I took the two slowest back to back months and compared them to the two busiest back to back months Nov-Dec July-Aug Homes for sale Avg 267 Avg 339 Homes sold Avg 20 Avg 35 Percentage of sale/vs sold Avg 7.5% Avg 10.32% In other words a mere 3% was the difference between the busiest back to back months and the slowest back to back months. During the busiest time 3% LESS in sales would have resulted in 1.05 less homes being sold During the slowest time 3% MORE in sales would have resulted in .6 more homes being sold So what I want to convey to my clients is this: The difference between the slowest time of the year and the busiest time of the year is very small in terms of statistics. And: IF YOUR HOME IS NOT LISTED YOU HAVE A 0% CHANCE OF SELLING! If you are in the North Atlanta, Lake Lanier, North Georgia area look us up. www.randywellsteam.com

North Georgia Events for November and December

Some great local events in North Georgia. Come up and see us! www.randywellsteam.com

Keller Williams Community Partners, Forsyth County, #1 in Sales

Know your Pipes!

How well do you know your pipes? If you know them as well as I do then you need a professional to help. Yesterday a representative from BPG Home Inspections spoke at our KW Team Meeting. He did a quick overview, with pictures, on some plumbing issues that they encounter. His emphasis was the new, and old, types of non-copper pipe that are being used in the home. PBE or Polybutylene “blue pipe”- This pipe was used in the US for a majority of homes built prior to 2000. Because of problems with the pipe it is no longer used in the US for home building. Numerous lawsuits took place because of the failures of the pipe. This appeared to be caused by a chemical reaction between the pipe and chlorine in the water. PEX or Cross-linked polyethylene- Used as an alternative to copper pipe, this pipe is flexible and cheaper. It continues to grow in popularity because it can be used easily in home construction. PVC or Polyvinylchloride-Also used an alternative to copper pipe, this pipe is less expensive to install. A good home inspector should educate you on the type of piping in your home and the potential benefits/pitfalls associated with it. The moral of the story: Do not hire a home inspector based on the cheapest price. I have seen this many times before and the results were not good. Call the inspector; ask for their qualifications and experience. Ask for references. Make this one of the most important factors in purchasing a home. If you find yourselves in the North Atlanta, North Georgia, Lake Lanier area, give us a call. www.randywellsteam.com

Yes Redesigns Still Work!

Yes the market was a lot busier than we have seen in the past few years. The downside is that I see sellers thinking their house will sell because of the market, regardless of how it looks. The Wells Team disagrees with this premise. We disagree based on experience. In the last few months my partner Barb, and marketing specialist Sue, went into two homes and did an extensive redesign on each. They have providing this service to our clients for over 8 years and has brought a lot of successful sales. House number 1 had been for sale for over 3 years! A nice cozy ranch that just needed furniture moved and other items rearranged to give it a "larger" feel. A simple process that resulted in a sale in two months! House number 2 had been for sale over 6 months! We attacked this home the same way moving furniture, rugs from under beds, and moving other smaller items. The idea was to take this 3000 square foot home and open up the living space. Result? Yes we sold this one in a few months also. Buyers are busy these days, as a result, do not have the imagination to see the actual home. Having the home redesigned, or staged, gives these picky buyers a better visual presentation. Better visual presentation means quicker sale. If you need your home staged, or marketed in the North Atlanta area let The Wells Team know! www.randywellsteam.com

Selling your home, AS-IS, and Requesting Repairs

Yes a strange title for a blog but follow my thought process. Your seller negotiates his or hers bottom price for the sale of their home. They feel like they are "giving their home away" and will not go a penny lower. Then the buyer has the home inspected. A few days later the seller receives a list of items the buyer wants repair. Repairs that can run into the thousands of dollars. The seller becomes frustrated and is ready to kill the deal. As an agent representing the seller what do you do??? After seeing this happen, quite frequently, I am inclined to look at some different strategies when it comes to marketing/selling a home: •Market the home AS-IS from the beginning-Personally I do not believe this is a good strategy. From my experience buyer's see a home AS-IS and smell blood. They sense desperation from the seller and are inclined to put in a much lower offer for the home. The buyer bids lower in anticipation of putting money back into the home for repairs. •When negotiations are in progress, good communication needs to take place. In other words the sellers need to convey to the buyers that this is my bottom price and I will not do any repairs on the property. I think this is a better strategy but I believe you will lose a buyer who has no leverage in asking for repairs. So to my fellow agents: Be very clear with your seller. In other words make them aware that a buyer will ask for repairs on their property. Taking away that right, through AS-IS marketing, will cause buyers to look at your home differently. In the end I would advise my seller to anticipate paying for some repairs. Come see us if you are in the North Atlanta, Lake Lanier, North Georgia area! www.randywellsteam.com

Before You List Your Home Have a Plan!

Another recent incident that cost The Wells Team a good sale. We had listed one of our client's home. They were starting a new home that would be done next spring. They did not have to sell their home in order to complete the new home. Received a good offer on the home in early September with a closing at the end of October. Everything looked good then........ The sellers did not have a plan. They decided they wanted to rent a home close to the site of their future home. However... They wanted an unfurnished home with a specific floor plan available in one month! They wanted a home in an area that is rural and predominantly seasonal mountain homes. Those homes are empty in the winter but are furnished. Two days later they could not find the home they wanted to rent. Contract gone. Home withdrawn two days later. Before you list your home you need a plan! Where are you moving? Have you started looking in this area? Are you willing to rent if needed? Are you willing to put some items in storage while you are renting? Do you have any idea on the cost to move? to store your furniture? If necessary what is your plan regarding schools? Before you list your home, let your agent know your plan. Without a plan you might have to turn down a sale! If you are in the north metro Atlanta area, Lake Lanier, or North Georgia, give us a call! www.randywellsteam.com

Mutual Respect: What is it?

What a crazy year! Our local market is the busiest in years, homes are selling, people are buying, and agents are working 24/7. The euphoria comes with a price: A lot of stressed agents, buyers, and sellers! And with the stress there are issues with how we are treating each other. Overall the majority of our experiences with other agents, buyers, and sellers have been good. However we have seen an increase in the amount of "personality issues" we are having with fellow agents, buyers, and sellers. So a couple of thoughts: Agents-Whether you are representing the buyer or seller we still have the same goal: Putting together a deal while representing our clients. Negotiating is a two way street. Both sides need to feel that they have won. So work with the other agent, communicate, and respect the other agent Sellers-You hired us to represent you in the marketing and sale of your home. You hired us because you trust us, acknowledge our professionalism, training, and experience. Treat us as professionals. Yelling, swearing, and scolding us like children (personal experience this year) does not motivate us to work harder for you. Buyers-Believe us when we tell you we are continuously looking for the home that meets your criteria. We drive a lot of miles and spend countless hours on your behalf. Getting short with us (personal experience) does not help. Appreciate the diversities in other people instead of criticizing them In other words: Mutual Respect Come see us if you are looking for homes in the north Atlanta area! www.randywellsteam.com

Fall Festivals in North Georgia

It is that time of year in North Georgia! See the attached for some, of many, fall festivals in North Georgia! If you are looking for property on Lake Lanier, Dawson, Lumpkin, Hall, White, or Forsyth County, let us know. Nobody knows North Georgia like a neighbor. The Wells Team: Your North Georgia Neighbors

Waiting Until the Last Minute? Why?

As real estate agents we are very busy this year. Why do we add more pressure to ourselves, and our clients, by waiting until the last minute to submit amendments? For our non-Georgia real estate agents: After buyers complete their home inspection, they have the chance to ask for repairs to be made. We do this on a form called an Amendment to Address Concerns. We also deal with a due diligence period. This amount of time is negotiated between buyer and seller. I usually see a time period of 7 to 14 days. During this due diligence period a buyer can walk away from the home, for any reason, without financial penalty. During this period if our buyer has any items he wants repaired then we negotiate these items using the form Amendment to Address Concerns. In the past two weeks we have dealt with two situations that were down to the wire. One time we were representing the buyer and one time representing the seller. Representing our buyer, the buyer had last minute concerns about a radon test. The test was considered normal but had readings that raised long term health concerns for my buyer. Due diligence expired Monday night at midnight. My buyer has me submit an amendment to address concerns to the seller's agent Monday morning. His seller is working and felt that she was being pinched about making a quick, last minute decision. Negotiating all day, we finished up the amendment at 9pm, three hours before the deadline. In the case of representing of our seller we had a similar experience. The due diligence was expiring on a Saturday evening. The buyers had their inspection report for over a week but waited until the day before expiration to submit the amendment. Why? In this case their agent went on vacation and said he would take care of it when he returned. My seller felt that she was held hostage to make a last minute decision and did not appreciate the pressure. Fortunately we were able to negotiate a solution. To my fellow Georgia agents: We have an obligation to expedite a home inspection in order to give ample time to review it. If there are items the buyers want repaired, it needs to be submitted earlier to the sellers. The seller needs the time to meet with contractors, get estimates, and review the information before negotiating. Waiting until the last minute because of complacency, makes a stressful negotiation that much harder. Keep an eye on the due diligence date! Check out our website at www.randywellsteam.com

Granite and its Nautical Influence

I just got back from vacation in SW Utah. We rented a houseboat on Lake Powell. If you have not been there you are missing one of the most beautiful spots in the country. After 8 years in the real estate industry, houses are always on my mind. Trying to shut it off during on vacation was my goal but housing came up in a strange way. We rented a houseboat with two other families. One of the couples had the chance to go on a private houseboat. A boat that made ours look like a rowboat. What was the number one thing that my friends remembered from the boat tour? The size of the engines? The advanced navigation system? The stability of the ride? NO! The granite countertops in the Kitchen and the Bathrooms! So granite continues to have a profound influence with my home buyers and the my fellow boat lovers!

MODULAR HOMES HAVE STYLE!

I was recently on vacation in Southwest Utah at Lake Powell. An absolutely beautiful place. I sell real estate in North Georgia. In the area we have a lot of double wide homes. They are in various styles and conditions. Needless to say I was impressed with this one I saw on my travels....

MORE HOME WARRANTY INFORMATION!

If you read my previous blog you learned of an issue I had with a buyer using a home warranty. Since I wrote that blog I have learned some more things that might be of interest to you and your clients. The biggest suggestion I have for you is to educate your client on the use of home warrantys. After 8 years in the industry, I have taken it for granted that my clients fully understand their use. The biggest point to emphasize is that a home warranty is not purchased to fix items that are already broken. The warranty is a form of "insurance" in case a system, in good working order, breaks in the future. Yes you would be surprised how many folks do not grasp this concept. The next point is to encourage your client not to immediately start making claims once they move into a home. Filing claims within 24 hours of moving into a property does not go over well with a warranty company. Before you file a claim make sure you have used the system numerous times without an issue. Again filing a claim within 24 hours on a system will raise some doubt from the warranty company. When you call the warranty company make sure you can explain the situation clearly. They are going to ask you if the system worked properly, how long had the system worked properly before you had a problem, and what the specific issue is concerning the system. Don't file multiple claims at one time. Know your warranty before you call. Do you have optional AC coverage, refrigerator coverage, roof leak coverage, etc.... I firmly believe that the warranty gives both buyer and seller a good piece of mind in the home sale/buying process. As agents we need to take the time to help our clients understand how to use them properly. If you are in the north Atlanta area come check us out: www.randywellsteam.com

BE CAREFUL WHAT YOU SAY! YOU ARE BEING RECORDED!

How many times have we said the wrong thing? I know that is a dumb question because we do it all the time. Its easy to say "I never said that" when you deny the conversation. That is unless the conversation is being taped. Let's talk home warranties. The Wells Team places warranties on our listings, ask for them in home purchases, and have our sellers include them in their sale. They give you the piece of mind in case you encounter a problem with your new purchase. Here is a brief story involving a major warranty company: •Home inspection on 5/17/13. •Final walk through on 7/12/13 •Closing on 7/12/13 •Warranty effective 7/12/13 •Buyer files claim on 7/15/13 Seems like a normal progression but: •Warranty company claims that our buyer told them "I don't know if the items ever worked". •Claim denied by the warranty company. A couple of points: •After the home inspection on 5/17/13, buyers did not go back to the home until the walk through on 7/12/13 •Home was inspected. All of the items involved in the warranty claim operated normally •Walk through on 7/12/13 did not show any problems •Claims made after warranty is in effect ALL CONVERSATIONS ARE TAPED! THAT MEANS BE EXTREMELY CAREFUL WHEN YOU MAKE ANY STATEMENT! OUR CLIENT DID NOT INTEND TO FRAUD THE WARRANTY COMPANY BUT HER ANSWERS WERE INTERPRETED AS TRYING TO DO THIS! Be careful what you say! It could come back to bite you! Check us out at www.randywellsteam.com

BACK TO OUR OLD HABITS?

My fellow real estate agents have been busy and it is a great thing to see! Unfortunately I am seeing the return of some bad habits. Specifically I refer to showing appointments and lack of feedback. My partner and I are experiencing numerous occurrences where appointments are scheduled and the agent "no shows". We understand if the agent falls behind or the buyer does not like the curb appeal of a home. However the agent needs to remember that our sellers have moved their life around in order to be out of their home for a showing. As a result my partner and I receive the honor of explaining why our sellers left their home and the home was not shown. In the past I have received mix reviews from my fellow agents regarding feedback. Some believe in it and others do not. We ask for feedback in order to give our sellers something, anything, to give them an idea on why their home is not selling. We realize that if an offer is not received the buyers are not interested. However if my sellers can make changes they are willing in order to sell. So here is what I am asking my fellow "professional" real estate agents. Communicate with sellers agents if you are not going into a home or are running excessively late Take a few minutes and give us some feedback.

DON'T CANCEL UNTIL YOU CLOSE!

Your closing is set for a certain day. Everything appears to be progressing normally. Then:::The closing is delayed. I don't know about your part of the country but this happens in our part of Georgia quite frequently. It is usually a financing issue. We had a closing scheduled for a Friday last month. Friday came, my sellers left the home, and the closing was delayed because of financing. We would be closing on Monday. My sellers were frantic. They had canceled their homeowners insurance on Friday and would be without through the weekend. The recent weather added to their fears. Fortunately they had an insurance pro who put their policy back in place. We also had the same issue with the utilities. If you sense any problems ask your sellers to delay canceling their utilities and homeowners insurance.

Crime Statistics and Home Buying

Another first after 8 years in the industry. We lost a contract on a home because of crime in the area. The home was located NE of Atlanta in a very nice neighborhood of homes priced under $200,000. The yards were neat, family activity everywhere, an active HOA, and very nice amenities. The home was a perfect fit and we went into negotiations. While we were in negotiations my buyer went to www.crimemapping.com to check local crime statistics. Even though nothing had happened in the neighborhood, there were incidents within .2 miles of the home that alarmed her. As a single mother, my buyer felt uncomfortable in this area and withdrew her offer on the home. My partner and I were surprised. Frankly we had not seen this situation before. As I talked to the buyer on the phone I sensed her opinion of me was adversarial not an advocate. I admitted that I wanted to look into this situation further before we "killed" the contract. That was not the right thing to say. The buyer had made up her mind. What have I learned: You can never know your buyers enough. Make sure you know there priorities and things that make them uncomfortable. Before I look at homes in any area, I will reference www.crimemapping.com or other crime software. That makes me more of an expert who can confidently work with a buyer. Listen, listen, listen to what your buyers say. Do not second guess your buyers. If they have made up their mind then respect their position. In this case the amount, and types, of crime were enough to deter her from buying. Other people might interpret the data differently. Keep working hard for your buyer! They will appreciate it!

Percentages!

After 8 years, and multiple listing presentations, I can throw out a lot of statistics. In a listing presentation the most important statistic is: How much am I going to receive for my home? In my experience, 90-92% seems to be a general average. However I am going to have to reassess that percentage based on the current market, and the price of homes. This year we have sold two homes in the high $600K price range. They both received 96% and 97% of asking price. Why? •Because the sellers had priced the home below their original purchase price. •Because a sales price at 90% of asking price represents a significant amount of money. (approximately 60K) •Because the market is allowing them to hold out for a slightly higher price. This is also the case with homes priced in the $130,000-$170,000 price range. Of course that is a direct effect of the demand for homes in that price range. So how do I answer that question from the beginning of the blog? How much will you receive for your home? I now dispense with the generalizations and provide the potential seller with more specifics on solds in their neighborhood. This is now allowing us to be a little more precise and realistic. Bottom Line: Provide your potential seller with the most precise numbers possible instead of using a generalized statistic.

Who is Watching the Store?

I hope the title would grab your attention. Here is a quick story: We have new clients in Atlanta. As they look at a home with us they continue to have their Las Vegas home up for sale. The home in Las Vegas is a new property, in excellent shape, and priced to sell. After 7 months in a busy Las Vegas market, not one offer. Priced lowered, not one offer. Our clients frustration continued to increase. We finally asked them about the home in Las Vegas, and more importantly, what their agent is telling them through feedback. Their agent has not been in touch with them at all. He does not answer their emails and does not send them updates. So my partner and I look into the situation. We go to Realtor.com to see what the home looks like in order to suggest a course of action. We were shocked to see the presentation online. Half of the pictures were so small that you could not see them. they were horrible. More importantly: THERE WAS A VIRTUAL TOUR OF A DIFFERENT HOME ON THEIR LISTING! The virtual tour of the other home showed a run down home in horrible condition. We worked with our clients and had them withdraw their ONE YEAR LISTING AGREEMENT (the agent got a one year listing agreement). Of course it took a while because the broker would not respond to request for help. We now have them in the hands of a new agent. Two thoughts: For my fellow agents: Pictures are the most important component of marketing and selling a home. We cannot cut corners. We owe our clients top quality, professional pictures for their home. We also need to send our clients links to their home on various websites so they can see the presentation. For my home sellers: You need to be more proactive with your agent. In an initial listing presentation ask the agent to show you other listings they have as they appear on the internet. Also ask them about all of their marketing in great detail. Once you sign an agreement with an agent, demand that the agent send you your home as it appears on the internet. At the same time periodically go on the major websites and see your home and its appearance. Bottom line: Everybody needs to be more proactive.

LOCAL,LOCAL, ALL MARKETS ARE LOCAL

The real estate euphoria continues. Here is an excerpt from the National Association of Realtors: "February pending home sales flattened with limited buyer choices, but remained at the second highest level in nearly three years, according to the National Association of Realtors®." No doubt we are busy in the Atlanta area but you need to break down "Atlanta" into smaller segments to get the truest sense of the local market. Th60 e Atlanta area alone comprises between 8 and 14 counties depending on who runs the statistics. Here is my example: February home sales for 8 counties in the North Atlanta Metro Area: Average list price $432,000 Average sale price $247,000 Average days on the market 71 February home sales for Forsyth County. This county is 30-45 minutes north of downtown Atlanta: Average list price $383,000 Average price sale price $280,000 Average day on the market 85 February home sales for Dawson County. This county is 45-60 minutes north of downtown Atlanta: Average list price $413,000 Average sale price $220,000 Average days on the market 112 My neighbohrood Chestatee It is a Lake Lanier community with a golf course one hour north of Atlanta in Dawson County. Average list price $504,192 Average sale price $309,250 Average days o the market 174 Where am I going with this? There is a home listed in the Chestatee neighborhood or $699,000. The home has been on the market, up and down, for three years. The home has been lowered to the current price. We put an offer on the home last month. An offer that dictated a counteroffer. The listing agent is located about 35 minutes south of the neighborhood in area with a buiser market. He told his buyers to counter by lowering the price by $4000. He said the market is great for sellers, and houses are selling very quickly. Do you know that the listing agent had never been to the neighborhood? (his partner had). Moral of the story: When the media says Atlanta is booming and is a sellers market, the buyers need to know more. They need us to break down the market into very specific areas in order to educate them to the fullest. Markets are truly local!

I Want it All Including the Cat!

Real estate transactions are becoming increasingly complex. Put together a contract, add financing contracts, inspection reports, appraisals, and the paperwork adds up. This was a first for The Wells Team: We received an offer on a home in North Georgia. Under Special Stipulations they added the following sentence: Home sold completely furnished! The alarm bells went off! Our seller did not know how to react. All of the furniture? Including the dishes? The silverware? The garden gnomes? The cat? Needless to say that makes it a very complicated transaction. First let me clarify this point. This was the primary home for my sellers. Not a vacation home. Selling a vacation home turnkey is pretty common. This was not. My sellers were trying to place a quantitative amount to all of the furnishings. It is hard to figure out how much a used leather couch is worth on the open market! There were also items that they wanted to take to their next home. To sell some of these items at "used furniture" prices and buy the same item new continues to complicate the decision. Here is my advice very simply: When your buyer wants furniture in a home have them buy the home first then negotiate the furniture separately with the seller. And if you want the cat please negotiate that after we close on the home!

The Pricer per Square Foot Argument

As I go another listing appointment I know the first question that will be asked: HOW MUCH IS MY HOME WORTH? Of course that is the most important factor our sellers look at when deciding to sell their home and of course which realtor to choose. I lost a listing last month because the seller held me to a price that was said as part of a lengthy discussion on marketing the property. Side-note: This home in question is in my neighborhood where my real estate partner and I have lived for over 12 years. We have had the most resale transactions in the neighborhood for the last 4 years! Back to the story: I gave him a quick number with the comment "If you want to sell it quickly". To this day he took that number, held me to it, and hired another agent two weeks later. However the seller does not seem to remember that our discussion continued. The seller had taken price per square foot of recent sales and arrived at a much higher price. We discussed this and I said he had a very valid argument. At the end of the discussion the seller said he wanted to list it for his amount and I said we could do that and see how the market reacts. Quick history of the home: •Built in 2005 •Approximately 3675 square feet plus unfinished basement •Went into foreclosure in the summer of 2013 •Overall good shape for a foreclosure •Listed, in foreclosure, for $327K, lowered to an auction price of $289K after 6 months of being on the market! •Present seller buys home in foreclosure auction for $284K •Present seller puts approximately $10K to 20K in work on home. •Present seller wants to list it at $399K! •I bring him an offer, before it is listed, at $389K, with $11K in closing cost. Seller turns offer down. Says he wants $10K more Here is my point: We cannot base the price of a home exclusively using a price per square foot model. In this particular case the home did not sell in foreclosure at a much lower price. It had to be sold at auction. Why is it going to miraculously sell now, over $100K higher than auction price, because the seller has cleaned it up? The home is located in a part of the neighborhood that is in lower demand than in other parts. It does not have a golf course or lake view that most buyers want in our neighborhood. When pricing a home you need to know the history of the home, its location in a neighborhood, and other subjective criteria, before pricing it. The price per square foot is a great start but it is not the ultimate determining factor!

Build or Buy in North Georgia

According to everything you read in the media the housing market is booming. Prices are up and inventory is down. New home sales are also starting to see an increasing demand. So this must be a good time to build!!!! In North Georgia the jury is still out. Here are some considerations: •Price pre square foot will be higher on a custom built home over a resale •Lenders, for new construction, are available but not easy to find •Lenders have tough terms when building a new home •Lenders have a fear that a new home will not appraise in a neighborhood of resales •Price overruns are possible I have seen great deals on new home construction. This is in new neighborhoods built by large builders who can keep their cost competitive. For now I advise my clients to take a good hard look at the pros and cons of each situation.

A Line Drawn in the Sand

The media is full of great stories about our national housing market. Atlanta is also included as one of the latest success stories. If you read between the lines in these articles you will see that the surging house market is also causing other issues for homeowners. For the homeowner who is "underwater" in their home, moving forces them into a financial dilemna: lose money on their existing home to pay more for another home or stay where they are? What I am seeing an hour north of Atlanta is a direct result of the perceived surge in home sales: My neighbors are holding out for 2007 prices. I live in the only golf/boating community on Lake Lanier. At one time I saw homes selling for $1 million dollars! Last year the highest priced sale was $430,000! Many of my neighbors bought lake homes at the top of the market. In addition they spent more money on upgrades. As the foreclosures and short sales appeared in the neighborhood, prices declined. Finally we have reached the bottom. In the case of our area it was a 30% decline to the bottom. So now my potential sellers are in a quandry: •I want to sell my home but I dont want to lose money •Everything I read says the housing market is on its way up. Where is my price increase? •I dont understand why buyers will not pay what I have in my home. As a result they have "drawn a line in the sand". They are going to hold out until they can get their "fair" price for their home. The line has been drawn.

Short Sales and Electronic Signatures

I was so excited to see electronic signatures become acceptable in Georgia. In the comfort of my home I can fill out contracts, email them to clients for signatures, and have them returned to me via email. NO MORE PAPER! Now lets talk short sales. I happily sent two separate banks two purchase and sale agreements. What lending institution would not be happy to receive an offer on their distressed property? In both cases the bank rejected the offers because of the purchase and sale agreements. They would not accept electronic signatures! If we wanted to use these contracts we would have to fill out additional paperwork that required regular signatures! I was back to paper! So much for a good idea.

It's Ground Hog Day

I was watching Ground Hog Day over the weekend with my son. This was the movie with Bill Murray where he went to Punxsutawney PA, as a newscaster, to report on Ground Hog Day. He ends up repeating the same day over and over in the town until eventually the cycle is broken. (I do not explain movies very well!) Ground Hog Day would be the perfect theme for a lot of clients I am dealing with in North Georgia. The Atlanta area had a good year last year. Reports of a 1 to 2% price increase, lower inventory, and new construction. That is great news for an area that went down approximately 30% after the market peaked in 2005! Unfortunately we have sellers who had bought their home at the peak of the market. They also put additional money into their home as upgrades. Our sellers are under the impression that the market has turned around to the point that they can receive a higher amount for their home. The reality is that when a market goes down 30% and has since gone up 2%, we have a long way to go. In other words it is Ground Hog Day: Bill Murray has woken up in bed to the same Atlanta housing market he saw last year. Bottom line: Yes our market is doing better but it is not back to the 2005 levels. Our sellers need to take this into account when they decide to sell their home.