What you won't find at lake Oconee

Lake Oconee may be the best lake in Georgia because of what it does NOT have. For example...
1. There have been no sightings of any of the 9 species of poisonous birds in the Lake Oconee area. If you've never been bitten by the Blue Crested Rattle Thrasher, you are indeed fortunate.
2. There are no Dream Archer Squirrels, known for their ability, when threatened, to propel a stream of psychoactive spittle that causes the victim to become unconscious and lapse into a dream-like state characterized by vivid, not-altogether unpleasant visions. Efforts to establish a breeding population in the area have so far proven fruitless.
3. The Bouncing-Betty Toad, not present south of a line extending roughly east between Cedartown and Augusta, has a relatively harmless yet startling habit of springing up to seven feet at a 45-degree angle toward an approaching perceived threat...not a recommended experience for anyone with a weak constitution.
4. People who have experienced the presence of the Tennessee Stun Sturgeon while swimming report an electrical sensation that caused battery-operated wrist watches to lose up to three hours. This skittish creature has never ventured south of Watkinsville.

These are just four of the animals that have never been identified in or around Lake Oconee, which is just one more reason Lake Oconee has become a premier refuge from the cares of the world.

Distressed Properties

Recently a potential buyer wanted to see lake front homes that are distressed (in foreclosure or bank-owned). After visiting a few properties, it was clear what he had in mind: a premium, well-maintained lakefront home buyable at about half the county tax assessors' appraisal. The ones we had seen all needed some work. He knew it is a buyer's market, but had an unrealistic idea of what that meant.

Think about it...if a home is in foreclosure or has reverted to the lender, it's a fair bet that there was some deferred maintenance on the property...if an owner can't make his monthly payment, he is likely not painting, reroofing, installing new HVAC systems, maintaining the landscaping, or refinishing the floors. And there have been instances where the foreclosed owner ripped out cabinets, fireplaces, appliances, landscaping, etc. In short, distressed property really is usually DISTRESSED!

What IS on the market, however, are some really nice lakefront homes where the owner has taken good care of the property and has adjusted the price to a realistic reflection of the market. I just listed a flawless home in a gated golf community...the price I listed it at is over 30% lower than the asking price when I showed it two years ago. It is now a very good price/value buy. It happens to be over a million bucks...it's not going to be bought for much less...but there are similarly great buys in most price ranges. Here is the reality...no homes are being sold at half their true value in the current market, but you may be able to buy a home for half of what the owner would have expected three years ago.

Late last year, prior to closing on an outstanding bargain of a house, my buyer said "But what if the house is worth less next year than I pay for it now?" My response: "It could happen (*it hasn't), but you will have had a year of enjoyment for your family and business guests...try doing that with with your IRA."

I know I was right, and so does his family. A lake home should be a good financial investment, but it should be more...it's a lifestyle purchase that should pay handsome dividends in more ways than one.

Inventory Rising, but We're Keeping the Candle Burning

After stating the following past 6-month figures for our resort community area here is Georgia, you may wonder how the news is not "All Bad".

Single family lakefront homes: Active listings...244 Sold past 6 months...23 A 5 year-inventory

Lakefront lots: Active listings...167 Sold past 6 months... 7 An 11-year inventory

Golf on-course / interior lots Active listings...365 Sold past 6 months...10 An 18-year supply

So..."aside from that, Mrs. Lincoln, how was the play?"....Not all bad?...You gotta be kidding!

First, it's amazing that anything is selling. In spite abysmal jobless rates and a general wariness, 23 families decided there has never been a better time to buy a home, so they spent between $200K and $2M on something they thought would bring happiness and pleasure to them and their families. In spite of dire warnings of a double-dip recession, 17 families decided to buy a lake lot or a golf community lot to build a home sometime in the future.

Two of those sales were mine. One is a lake lot with a great view, in a very nice, upscale community near the Ritz-Carlton. The buyer got it for about two thirds the price paid for the lot right beside it 5 years ago. The other is one of the nicest homes I've seen anywhere here at the lake. The owwners were ready to sell (not desperate, but definitely ready), and they had overbuilt for the lot. My clients got a home that will serve their fairly young family wonderfully for the next 10 years, and will be a great place to call their permanent home after that.

Neither party "stole" their property. Both got absolutely great buys on an investment in lifestyle. So...Buyers are definitely in the drivers' seat, and more sellers are adjusting their goals to a more realistic expactation. A little common sense, some faith in the future, (and, hopefully, some good advice from their buyer's agent) kept the candle burning at Lake Oconee.

Strictly Business? or Emotions?

Conventional wisdom says offers should be viewed as strictly business, and not taken emotionally. And so it should be...but quite often, conventional wisdom gives way to human nature. Case in point: Lake Oconee is roughly a 50/50 second home vs. permanent home market. While there are certainly a fair share of short sale, foreclosure, and "motivated seller" properties on the market, perhaps 80% of the homes and lots for sale in the lakefront and golf communities are owned by people who are not desperate. They want to sell, certainly, and many have adjusted their prices downward to reflect the market, but they are in the same boat as buyers of second or vacation homes...neither party MUST sell or MUST buy. So...

If the goal is to buy property strictly as an investment, it's definitely a buyers' market, so offers at 50-60 cents on the dollar are fine...if the seller gets offended, so be it...the buyer has nothing to lose.

But if the goal is to find a property intended to serve as a gathering place for family, friends, or business entertainment, a really "lowball" offer can stiffen even a motivated seller's resolve to either not counter, or to counter at near asking price. Negotiations in this market can be long, drawn out, and intricate. The process leading up to closing can often present situations where one side or the other needs a little "goodwill" from the other to keep things moving. Whether representing the buyer or the seller, (and I'll only do one or the other), bad harmonics created during the process of making an offer can derail the purchase down the road. Good harmonics, preserved with some thought, foresight, and perhaps a little wit, can result in a closing that leaves both buyer and seller satisfied with the overall outcome.

How to NOT represent a buyer's best interests!

Had a call this evening from an agent in Atlanta, asking about one of my listings. Said they had been working with a couple looking for a lake home for six months, yet the questions the agent asked and our conversation made it clear that the agent is completely unfamiliar with the local market. I told the agent that I would be happy to show the buyers any of my listings, and if none of mine worked, would work with them on a referral basis to find the right property, regardless of who had it listed. Agent's response: Wouldn't consider it...been working with them for 6 months, and would continue working with them with no assistance.

We love Agents who actually bring their clients out and go to each home with them. I'll do anything possible to help such an agent within the parameters they wish. My sellers deserve my efforts to work willingly and cheerfully with outside agents. But I can only feel sympathy with this agent's buyers when their agent is more concerned with his/her commission than in helping their buyer.

I know the Atlanta market pretty well, but would never consider representing a client buying property there. I don't know how things have changed since we moved from there to Lake Oconee nine years ago. I don't know the pricing trends in each neighborhood. I don't know where the homes are that are "by owner" or not even listed, but are available nonetheless. I DO, however, know the Lake Oconee and Lake Sinclair markets, and could easily put this agent onto at least two homes that would probably work for them. I even offered to get an authorization to show for one of the propereties that is not on the market, but the agent wanted me to send photos FIRST! Instead, I'll be taking my grandson fishing tomorrow.

The past three months have been occupied with my move to Coldwell Banker Lake Oconee Realty. I'm now ready to resume blog listings. The move was occasioned by my sense of needing to reinvigorate and recharge my business. I was very fortunate to have been with a very successful non-franchised broker for 7 years, and my departure was on excellent terms on both sides. My former broker very generously permitted me to move my listings with the sellers' consent...all 14 listings stuck with me.

The normal trajectory in our local market is to begin with a franchised company, then move to an independant as an agent gains experience. Mine was just the reverse. After over seven years of consistent $million-plus performance, the new year will be a challenge, but it seems that activity is beginning to resume. My intent with this blog was to avoid personal references as much as possible, and stick to the Lake Oconee / Lake Sinclair market itself, and after this explanation of the past 3 months, that is what I plan to do.

Auction of lake front townhomes

At an auction of 16 lakefront townhomes (The Peninsula on Lake Oconee) on Sunday, December 13, all 16 properties sold within about 90 minutes. Many of the homes in the development had sold over the past couple of years for prices ranging from the mid-$400K's to over $700K. Auction prices ranged from $319K to $415K, with buyers paying an additional 8.5% buyers' premium. Total sales exclusive of buyers' premium was $5,827,000 based on the announced winning bids.
These were extremely well-done homes...all have assigned slips, custom interior finish and pool access, and other amenities.
The auction company, SheldonGood & Company, conducted an extremely well planned and executed event. There were ample opportunities for prospective buyers to view the properties in advance, the process was thoroughly explained in advance, and it was held in Atlanta with very strict qualification of prospective buyers.
Several bidders were represented by their buyer's agents from the Lake Oconee area.