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.