Lake Oconee and Lake Sinclair distressed properties, short sales, foreclosures

While the national downturn in financial markets, including real estate, has not affected the local market for lake property at Lake Oconee and Lake Sinclair as severely as in traditional residential markets, there are still opportunities available.

First, a general observation: although the local newspapers are carrying pages of impending foreclosure sale notices, very few really desirable lake properties actually get sold on the courthouse steps. The bank intervenes with an offer of a potential short sale (they will take less than their borrower owes and release the borrower from further responsibility). Or the borrower finds a buyer for the property in the nick of time, often by getting realistic about the property's current, true market value.

A "courthouse steps" transaction has so many potential pitfalls...being sold "as is", possible tax liabilities, possible mechanics' liens...that you as a buyer, and your agent, had better be very specifically experienced in such transactions. Also, lenders will often refuse to sell at an absurdly low price. They have no desire to get stuck with property to manage, but they are generally unwilling to let a property go at 20% or 50% of it's current market value. Very few agents have the experience to properly represent their buyer (I don't...that's why I steer clear of these transactions. A handful of our area agents are quite well qualified to do this and are earning a good living at it). It is truly not an activity for the faint-hearted, uninitiated, nor for the average seeker of a place for their family to live or as a family retreat.


What does make sense, especially for the buyer who wants property for their own use rather than as a pure investment, is to spend the time to get to know the relative values of properties available, and to get a feeling for the degree of motivation of specific sellers. For the buyer who has the financing arranged, or better yet, the cash on hand, to make a buying decision quickly, there are excellent buys...values that would have been on the mark four years ago, and and with good potential to maintain or increase in value.

And just try taking your granddaughter fishing at your 401K!

Golf Memberships in Lake Oconee gated communities

It's not uncommon for owners of Lake Oconee lakefront homes outside the gated golf communities to decide they want a membership, but don't want to sell their homes and move into a golf developmemt. Solution: Buy the least cost lot that enables the purchase of the membership you want.
Examples as of today:
Harbor Club: $ 49,900 + $ 25,000 deposit
Reynolds Landing: $75,000 + $20,000 deposit
Reynolds Plantation / Great Waters: $108,500 + $30,000 Exchange membership deposit
(properties enabling the purchaser to buy a full golf membership are typically
higher purchase price and the deposit ranges from $35,000 to $110,000)
Cuscowilla: no need to buy a property; non-resident membership is $25,000

Max docks and boat lifts on Lake Oconee

Georgia Power sets policy on which Lake Oconee waterfront lots can have a dock and the kind of dock allowed. The dock type and availability are two factors that determine the value of a lakefront home or lake lot. Generally, the lot must have 100' of waterfront before it can have a dock of any kind. There have been exceptions, many of which have been grandfathered in from past years, but requirements have tightened recently. Anyone considering Lake Oconee lakefront property will be wise to call Georgia Power, whether the property already has a dock or not.

If there is a dock, Georgia Power can let the prospective buyer know the dock's status...for example, they are now requiring that any new dock, or rebuilt dock, must be no closer than 15' to a side lotline, so an existing dock may need to be repositioned if or when it is rebuilt. If there is no dock, GaPower can tell, often without visiting the lot, whether and what kind of dock will be allowed, and how it should be positioned.

They (GAPower) have been extremely cooperative and reliable. Generally, lots that can have no dock will be worth tens of thousands of dollars less than one that is dockable. Undockable lake lots are very uncommon at Lake Oconee, but you need to know for sure.

Dockability can add $50K to $100K+ to the value of a lot or a lake home. The most desirable dock is a max dock with an "H" slip and a 320 square foot seating area. Such a dock can usually have two boat lifts and up to four PWC lifts. Some lots can only have a "wharf" dock...one that is parallel to the shoreline, but some of these can have a boatlift as well.


Whether buying a property or selling a property, a little homework can be critical.

Sellers' mistakes when marketing a lake home

Yesterday, while previewing several lake homes that had been placed on our Lake Oconee Agent Open House, one of the homes was obviously "Not Ready for Prime Time". The price?..well over a half million dollars.

I'm assuming that the owner's agent has brought this issue up with them, so what was this owner thinking? Even in a ragingly good seller's market (which is not what we are in, by the way), this house was a disgrace. This home must compete with homes in every price range that have been cared for and kept ready to show on a moment's notice.

If there has been a death or disability in the seller's family, that is understandable, but the house should be priced to reflect its run-down condition, not as if it was a pristine jewel.

Buyer's agent should know before they show

I recently had one of my listed lake homes shown by a local Lake Oconee agent. This agent had never been to the house before...ever. This agent had no idea what to expect and, not knowing the area, no way of explaining the pros and cons of the home. This lakefront home is near new, in one of the most desirable lake communities, and priced properly for the current market. Feedback from this agent: "Customer didn't like it". This agent is essentially a tour guide...when pressed they will show property, but with no idea of the salient points that may make the property right or wrong for their buyer. I can only imagine what their customer thought...people can tell when their agent is clueless.

Past 12 months lake home sales at Lake Oconee

During the past 12 months, even in a very challenging market for primarily second homes, sales have not completely dried up.

For lakefront single family homes with private lake frontage:
71 sales @ 95% of asking price; hi@$4,000K, lo@$262K, median@$689K
There are nine homes pending from $3,605K to $399K, median@$549K

For off-lake single family homes, including golf communities:
97 sales @ 93% of asking price; hi@$1,570, lo@$55K, median@$315K
There are 15 homes pending from $1,195K to $70K, median@$199K

Time on market is almost meaningless, as is the percentage of asking price. Reason: if the ask price dropped from $600K to $500K before it went under contract, and it sold for $475K, that's 95% of the reduced price, but 79% of the original price. Before making an offer, buyers need to know the pricing and listing history of the specific property. That's part of what a competent agent can do.

Lake Oconee lake homes and lake lots for sale

Here is what is on the market at Lake Oconee Georgia for six categories of lakefront and golf property as of 6-3-09;

Lakefront homes non-golf: 139 homes from $225K to $2,900K Median: $615K
Lakefront homes gated/golf: 84 homes from $669K to $5,695K Median: $1,540K
Off lake homes gated/golf: 225 homes from $185K to $4,995K Median: $629K

Lakefront lots non-golf: 80 lots from $99K to $1,750K Median: $340K
Lakefront lots gated/golf: 72 lots from $249K to $1,650K Median: $722K
Off-lake lots gated/golf: 363 lots from $38K to $929K Median: $189K