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!

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.

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.

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.