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.

The First Quarter of 2012 for The Wells Team

The first quarter of 2012 started more positive than this time last year. However as the year progressed we are starting to see a return to the same pattern that has “haunted” us for the last three years. A lot of lookers as spring started early in the south A group of new lookers filled with excitement Sellers who have decided to make a move As April ends we are returning to the same cycle. Buyers want updated homes at low prices Buyers do their research and learn about the market from all of the information available When it comes to offers, buyers are drawing their line in the sand. Buyers are not negotiating in the traditional way. Our sellers are frustrated because of the reasons above Foreclosures on Lake Lanier, and the higher priced golf communities, gather the most interest. We will let you know how the rest of the year progresses!

The 3.8% Tax

The National Association of Realtors has put together a publication entitled: "The 3.8% Tax Real Estate Scenarios and Examples".



Some of the highlights of the publication:
•This tax will go into effect on January 1, 2013
•The tax will not be imposed on all real estate transactions
•A 3.8% tax will be imposed on some, not all, income from interest dividents, rent (less capital loss) and capital gains (less capital losses)
•The tax will be on AGI over $200,000 for a single filer and $250,000 for a couple filing jointly.



The publication has various scenarios that show what the potential, if any, tax that might be paid on a real estate transaction.



There have been a lot of rumors on this new rule. The National Assocaition or Realtors publication does a great job of laying those rumors to rest.

MOLD! A Four Letter Word

I bring up the subject of mold because we just dealt with this situation. Please read our prior blog entitled "We Know What We Are Doing".

What I have learned about mold is that the very word sounds off alarm bells with most people. Realtors have placed mold with synthetic stucco and for sale by owner as terms we hate to discuss.

Here is what I will say about mold:
•Take the time to check your homeowners insurance to see if you have mold coverage
•If you suspect mold in your home call at least three certified experts to discuss optionos.
•Do not try to treat the mold yourself.


Very simple advice but words that my partner Barb and I had to put into practice recently (again read our previous blog).

We know what we are doing!

I have had to emphasize this point for many years: THIS IS OUR PROFESSION.

My partner Barb and I have had the pleasure to work with many well educated, business savvy, experienced clients. Some of them have bought and sold more houses than I have!

However after 7 years of success in this real estate market we can say with confidence that we know what we are doing.

Recently we had a client who was dealing with a possible mold issue in a home that he was lease/purchasing. A water leak occurred in the bathroom (nail in a pipe). The homeowner sent out an insurance adjuster who made a report. The homeowner next sent out a plumber and contractor to fix some of the items but not everything in the adjuster's's report.

In the interim our client's son, who is 4, had been sick for over four months! Possible mold in the home and how it relates to their son's illness.

Once the "M" word was mentioned my partner Barb and I took this to a higher level.

We asked our clients to not talk to the current homeowner and let us discuss options. Our client, who had lease/purchased the home, wanted to work this situation out with the homeowner but nothing was being accomplished.

Reviewing our GAR contract with our broker, we looked at possible options.

After a professional mold certified inspector filed his report we were at our next step.

Barb and I then advised our client to discuss all options with an attorney.

The contract was to be terminated pending a final walk through by the current owner, our client, and my partner Barb present.

Needless to say the current owner did not welcome my partner Barb with open arms. They proceeded to make a lot of comments and accusations, some rather harsh, at her. She had to listen to these irrational comments because she represented her clients.


Moral of our story: A lot of us thinks we can do everything our self. Whether it is working on our car, our house, investing our savings, doing our taxes, buying our houses there are times when we need to use a professional.

Barb and I pride ourselves on our knowledge, integrity, and hard work. All we ask is that our clients let us "watch their backs".

Time to Move

Moving is hard. Whether it is a new job, a transfer, different home, school, or church it is hard to say goodbye.

However moving brings about a new excitement to our life.

After 6.5 years at The Norton Agency of Cumming GA, The Wells Team has made a move. We are now members of Keller Williams Community Partners.

Keller Williams is the largest real estate company in Forsyth County Georgia (North side of Atlanta). We have an office in both Cumming GA and Dawsonville GA. Both of these offices are better located for The Wells Team and our clients. We will be able to more effectively serve our clients in the North Metro Atlanta area all the way to the North Georgia Mountains.

The change also gave us the "kick" we needed to jump start our business.

Even with our new partner The Wells Team will not change its overall recipe for success: Working hard for our clients. It is a simple recipe but has been the reason why we are where we are today.

The Wells Team and Keller Williams: A great combination.

When Your Seller Tries to Sell Your Home

Quick True Story:The year was 1990, the location Southern New Jersey, I had to sell my home, and the real estate market was bad!

I received a call for a showing. I cleaned the home to the level of an operating room. I was ready. The agent showed with her buyers. They spent a little time walking around and were ready to leave. I met them out front of the home to give them my "sales pitch". I told them about the home and how the neighborhood was great for a family. My sales pitch was so good I could envision the offer.

The agent took me aside and made two comments: "Your home smells like Clorox and my clients do not have kids and are not interested in starting a family".

I was devastated. The next day the agent called me and bluntly asked me: "Do you want to sell your home. If so I can do it but I will do it my way". I mumbled yes ma'am, listed the home with her, and sold it a few months later for a slight loss.

That was 20 years ago.

My partner and I have been selling for 7 years now. We were #2 of 135 agents company wide for 2010. I can say with confidence that we know how to sell a home.

What I have learned from my clients about interaction with the actual sellers:

•Having the sellers in the home makes potential buyers very uncomfortable. They are hesitant to "dig" further into the home as they look. They spend less time because they feel that they are imposing.
•If the buyer wants to make an offer on a home they do not want to meet or see the seller. That adds personalities into the offer phase which makes buyers react differently.
•When a seller talks to the potential buyer at the end of looking at the home, the buyer again feels uncomfortable. Some tell me that the seller appears emotionally attached to the home and at times can appear desperate.
•The buyer has many homes to see that day. If the seller ties them up for an additional 30 minutes they fall behind schedule.
I realize that our sellers know everything about their home, the neighborhood, and the local area. However when The Wells Team list the home we also learn everything we can about the home also.

Our follow up with a potential buyers agent is always thorough. We take the time to point out the attributes to the buyers agent in order to foster interest.

Bottom Line: The home sells itself! If the potential buyer has interest then the agent will contact us. A "hard sell" from our sellers has not proved to be an advantage.

I am Tired of Solicitors

This is starting to happen me on a daily basis. I am busy, driiving in my car, spending time with my family or a client, working around my home, taking a real estate class, or just trying to relax.

Then the phone rings. I answer anticipating a new client, a listing inquiry, or an offer.

Instead: LET ME TELL YOU ABOUT THE KEYWORDS THAT WE HAVE RESERVED FOR YOU! WOULD YOU LIKE TO INCREASE YOUR CLIENT BASE? IS YOUR WEBSITE RECEIVING ENOUGH HITS?

I respond that my business is fine, our team was #2 out of 145 agents for 2010, and my website receives enough hits.

The script continues and I struggle to get a word in edgewise.

Finally I am able to say that I will give you five minutes. At the other end of the line I hear that they want 30 minutes in order to give me a full presentation.

I don't have 30 minutes. Frankly I dont have 5 minutes.

But the script continues.

I grow tired.

Finally I say this is not a good time. Can you email me the necessary information so I might have the time to review it at my leisure. Silence followed by a sullen voice at the other end. I have killed another potential sales for a hardworking sales rep.

Here is my comment: To all of you real estate solicitors. Talk a little slower when you call, listen, realize that we are also very busy, and be flexible about future conversations.

If you don't mind please don't call me for a while. My ear hurts and I am out of air time.

The Foreclosures Are Killing My Neighborhood!

I have to admit that The Wells Team has benefited from the sale of foreclosure properties in the North Atlanta area!

At the same time my level of disappointment is increasing with respect to my own neighborhood.

I purchased my home in 2001. This was well before I entered the real estate industry, before the real estate boom and the real estate bubble.

The results: My home is worth less today based on the same model that sold down the street. It was a foreclosure!

We have 342 homes in our neighborhood. At this time there is only 1 active foreclosure but there are two being advertised for foreclosure, and another 3 or 4 personal situations that I know will result in the same.

Yes I admit I feel bad when I see the homes being advertised for sale. It is the result of a failed business, personal issues, or the loss of a job.

However I looked up 5 or 6 homes that I know are in, or will be in foreclosure soon. The numbers killed me! The average loan amount (usually multiple loans) was 122% of the sales price!

This is my personal opinion not the opinion of a real estate professional: My parents both grew up poor. They worked hard and ended up successful. They also saved their money and were cautious when it came to buying unwanted items. They lived within their means! They pushed work and most of all saving my money. What they emphasized to me was this: IF YOU CANNOT AFFORD DO NOT BUY IT! HAVE EMERGENCY MONEY SAVED JUST IN CASE!

As a country we keep trying to point fingers at who caused this housing mess. Again my opinion was bad financial choices and a certain amount of greed.

It will be a while before I will sell my home. Guess I will enjoy instead!

Zoning Debate in Forsyth County

Read an article in the Jan 30th AJC concerning Forsyth County and a debate on zoning.

Forsyth County reflects what many counties in Georgia, and nationwide, will be up against when they look at ways to bring in business to help their tax base. Many counties in North Georgia rely on residential for the majority of their property taxes. Forsyth County has quite a few businesses that add money to the tax rolls. However the county experienced a large influx of money as a result of the housing boom.

Now that new housing construction in Forsyth County, as well as, the entire Atlanta area continues to be flat Forsyth County is looking for commercial opportunities to contribute to the tax rolls.

The dilemma they find themselves in, according to the article, is whether to give variations to attract business investment.

According to the development watchdog group. Smart Growth Forsyth the answer is no. They worry that the county will increase the amount of zoning variations requested. That would lead to a further erosion of zoning standards.

This debate will take place in all of our counties. Stay informed, and involved, in your county. Eventually decisions like these could directly affect you, your quality of life, and potentially your home value

Should you Update or Upgrade Your Home?

Should you update and upgrade your home prior to selling? That is a difficult question to answer but is a question worth examing.

I wanted to lead by example. My family is living in a 10 year old home. During those ten years we have updated the Kitchen, painted, installed new carpet, and additional hardwoods.

We just completed remodeling the Bathroom (my wife designed the entire project). I have attached before and after pictures to show you the difference.

Why do we do it? There are many reasons. Future resale would be one reason. However we did it to enjoy it!

Our situation is slightly different than our present clients. We are not going to sell our home for quite a few years.

However my suggestion to our present and future home selling clients: Strongly consider doing some upgrading and updating to your home!

Here is my reasoning:

Decorator allowances, agent bonuses, and other "give aways" do not work

Atlanta has limited new construction. However buyers are demanding new home style in a resale home.

Buyers continue to lack imagination, time, and money to do their own upgrades.

Our feedback continues to be consistent. We have homes that show well but lack the latest that separates it from the rest.



Barb, Sue, and Randy make up The Wells Team of The Norton Agency. Let us help you prepare your home for sale in the North Atlanta area. We also offer redesign services free to our clients!

I Can Call You Anything I Want!

The professionalism continues to decline.

Recently I had a problem with an agent showing my listings. The agent would contact our sellers directly sometimes knocking on their door. Our showing instructions were clear that we needed to be contacted first.

I wrote an email to this agent, and her broker. I thanked them for showing the property and looked forward to working with them. All I asked, nicely, was that they called me first. I have information on my clients, and their property, that could be beneficial to all sides.

In return I received an email. It said that it was all about control and that I am a D---!

Obviously I was shocked by the response.

I took this to my broker. She contacted the other broker and asked her to explain her agent's behavior. Her response was irritation that I had forwarded the email to my broker. Nothing was going to be done!

My broker's hands are tied. Why? Because this sales office agents are not members of a board of realtors and have no company guidelines on this type of behavior.

If I had made a similar comment my company would have fired me for violating company policy.

Bottom Line: There are agents who can do whatever they want. They do not have conduct guidelines from their company. Since they are not members of a board of realtors, or the National Association of Realtors, they have no additional codes of conduct.

Unfortunately this sales office is in my neighborhood! How ironic!

Before you list your home: Upgrade and Update!

By now any homeowner should know what is happening in the real estate market. It is on the news daily, in magazines, newspapers, and discussed frequently by the "experts".

HGTV dedicates shows to homeowners who endure ridicule from potential homebuyers on the condition of their home. They in turn spend money and time upgrading their home to ready it for sale. The results are usually positive.

With all of this information available why do many homeowners put up a "wall" when upgrading is discussed on their particular home?

Barb and I have sold over $4 million dollars in real estate for 2010. Based on these sales we can tell you where our success has been in home sales.

The home is either a foreclosure or short sale. If not then the home has undergone upgrading and updating.

It is that simple.

The buyers are still in control. I repeat the buyers are still in control. What they want is a resale home with the latest and greatest included. That means granite countertops, stainless steel appliances, hardwoods, updated master bathrooms, and mounted flat screen televisions.

They do not have the time, money, or imagination to renovate themselves. They want the home move in ready.

If you are considering listing your home in the North Metro Atlanta area give Barb and I a call. We will tell you what you need to hear and not what you want to hear.

Check out our listings at www.randywellsteam.com

Where is the Professionalism?

We spent last night with one of our clients updating them on our local market.

They understand what is transpiring in the economy and the housing market. What they do not understand is the lack of courtesy shown by other real estate agents.

The past few showings have frustrated them. A 3pm appointment actually took place at 4:30pm. Another appointment actually transpired over two hours late. Others scheduled and did not show.

Why?

The agent who was 90 minutes late decided to show other vacant properties first. This individual did not put together a plan keeping in mind the inconvenience of our sellers.

The agent who was two hours late did the same thing. This agent showed his client empty homes first not keeping track of the time.

The ironic part is that the empty homes, as well as, our listing were in the same neighborhood!They could have easily gone back to the empty home after they kept their appointment with our listing!

We do not ask for much just some professional courtesy.

If you make an appointment be there on time. If you are running early or late give us a call.

If you drive up to the home and your clients do like the home call us. Do not leave us waiting.

Give us feedback on your showing.



A little professional courtesy in this tough market goes a long way!

What are you Looking at in your Next Home?

You are looking at houses. Over the weeks you have seen many of them and they start to look the same.

How do you remmember the difference? Stainless Steel appliances, Crown Molding in the Dining Room, nice furniture, or maybe a built in television.

If that is how you remember one house vs another you need to look at the houses in a different way.

What is the square footage of the home?

Does the floor plan work?

Is the driveway/lot acceptable?

How is the location?

How is the price compared to others in the neighborhood?

Is it propane, all electric, all gas or a combination?

What will HAVE to be done on the home ie, new air conditioner, new roof, new furnace, etc.

We have seen too many people get zoned into the superficial part of the home. We all like the latest upgardes when we find a home. Unfortunately this is not the case with a resale home.

Bottom line: Be realistic!

If we can help you find a home in the North Atlanta area please let us know.

We are The Wells Team of The Norton Agency. www.randywellsteam.com

They were not interested in my home. Why was it shown?

Who is looking at my home today?

What do you know about these potential buyers?

Why did potential buyers look at my home when my did not suit their needs?

These are commom questions we receive from our sellers when it comes to the showing of their home.

What does The Wells Team do differently?

When we are first contacted by a buyer's agent we ask:

• Why this home?


• What is your client looking for in a home?


• Are you familiar with the neighborhood?

We then tell the buyers agent the attributes on the home, the neighborhood, and the local area. If the particular listing is in our neighborhood we discuss homeowner's dues, amenities, and any other questions they might have.

Even if we provide all of the information it might not guarantee results.

The buyer's agent is looking out for the best interest of their client. They can become hesitant to give too much information.

There are buyers who do not have an exact idea on the type of home they wish to purchase. These buyers have not purchased a home in many years. They are entering a different stage in life which makes their home priorities different. In other words they need to see what is available.

Ultimately the buyer's agent is the one expending all of the energy on behalf of his or her clients. It is in their best interest to do the necessary research on homes before they "waste their time" showing homes that do not fit their criteria.

As for our sellers: When we have the chance to show your property we need to do so. It can be inconvenient, frustrating, and might not give you the results you desire. However one thing is for certain: If we do not show your home then we know it will not sell.

If you are looking for property in the North Atlanta area, Lake Lanier, or the Norton Georgia Mountains, give us a call. We are The Wells Team of The Norton Agency.

http://www.randywellsteam.com/

I WANT IT ALL!

The last time I heard this line was from Willy Wonka and The Chocolate Factory! (Remember the scene?)

This is what The Wells Team is seeing with home buyers in the North Atlanta area.

There is very little new home inventory available. (The builders are gone).

The buyers are looking at the large amount of reslae inventory including foreclosures.

What are the comments?

"A lot of house for the money but the bathroom needs updating".

"Where is the granite in the kitchen"

"The Dining Room needs to be repainted".

"The entire home is outdated".

ENOUGH!

Here is the reality concerning resales and foreclosures.

Look at the price per square foot of the home. Compare the cost of buying the home or building the home with the latest bells and whistles.

The conclusion is obvious.

The Wells Team has homes that average under $100 per square foot. Compare that to the $135+ per square foot to build the same home new. Take the diffrerence in price and update the bathroom, kitchen, or both. You still come out ahead.

The deals are still there. They just involve a little extra work to give them your personal touch.

With that extra effort YES YOU CAN HAVE IT ALL!

SHOULD WE CHANGE OUR REAL ESTATE BUSINESS INTO A 501c NON PROFIT?

We have a dilemma on our hands? Do we change our real estate business into a non profit? We ask this question because we have recently been asked to cut our commission by 33% on a recent sale! This is in addition to the never ending request for real estate help requested by the
For Sale by Owners!

The Wells Team is not in the real estate business because we needed a hobby! This is how we make our living!

For some reason many people cannot make the same conclusion. As far as they are concerned we are a service they want to avoid using because of the commission. At the same time they have no problems asking us to use our limited free time to assist them in the selling of their For Sale by Owner property.

We also see no end in sight to the request to cut our commissions by 1 point which equates to a 33% overall commission cut!

Our marketing expenses, board dues, gas, desk fees, and marketing have not declined by 33%!

Simple conclusion: If we take the commission cuts that are requested and work for free, then why continue in the real estate business? A simple solution would be to ask for non profit status. At least we get a tax break!