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.
Sunday, April 11, 2010
Saturday, April 3, 2010
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.
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.
Wednesday, March 31, 2010
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.
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.
Tuesday, December 15, 2009
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.
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.
Thursday, November 12, 2009
Jumbo loans for Lake Oconee waterfront homes in Greene County
The $662,500 limit for conforming jumbo loans in Greene County, Georgia, has been continued until September 10, 2010. Greene is the only county in Georgia that qualifies for this limit...all other counties in Georgia are limited to $417,000. Given Greene County's millage rates among the 5 lowest of Georgia's 159 counties, and the attraction of the county as a premier golfing and lakefront destination for full-time and second homes, the real estate market here offers a unique opportunity for value-seeking buyers.
Friday, October 16, 2009
2009 residential real estate market for Lake Oconee waterfront and golf course homes
Compared to what we hear about the real estate market in places like Florida, Arizona, and California, our 2009 market at Lake Oconee in Georgia for waterfront and golf community homes seems reasonably sound at low and medium price points.
Lakefront homes sold in our 125 non-gated lake communities are right on pace compared to 2008, with avereage sale price at $456,500, about 9% off the asking price.
Higher priced home sales (those over $1 million) are DOWN about 80%. Since the vast majority of $million+ lakefront homes in our area are located in our five gated golf communities, that's where the greatest pain is being felt. There have been five sales with 2.5 months to go compared with 30 sales in 2008. More telling are two points: the average listed price of the 89 waterfront homes in the golfing communities is nearly $2million; the average price of the 5 properties sold this year is just over $900,000, about 15% off the listed price for those properties.
Off-lake homes in the golf communities are running at about 75% of 2008's pace. Average price for the 34 golf non-lakefront homes sold is $527,700, about 9% off asking price.
We are seeing an increase in potential buying activity this fall as opposed to the spring and summer. Those in the market are serious, have often pre-negotiated a loan or are paying cash, but are shopping for bargains in the under-$million properties.
Shortly I will prepare a similar report for lakefront and golf building lots.
Lakefront homes sold in our 125 non-gated lake communities are right on pace compared to 2008, with avereage sale price at $456,500, about 9% off the asking price.
Higher priced home sales (those over $1 million) are DOWN about 80%. Since the vast majority of $million+ lakefront homes in our area are located in our five gated golf communities, that's where the greatest pain is being felt. There have been five sales with 2.5 months to go compared with 30 sales in 2008. More telling are two points: the average listed price of the 89 waterfront homes in the golfing communities is nearly $2million; the average price of the 5 properties sold this year is just over $900,000, about 15% off the listed price for those properties.
Off-lake homes in the golf communities are running at about 75% of 2008's pace. Average price for the 34 golf non-lakefront homes sold is $527,700, about 9% off asking price.
We are seeing an increase in potential buying activity this fall as opposed to the spring and summer. Those in the market are serious, have often pre-negotiated a loan or are paying cash, but are shopping for bargains in the under-$million properties.
Shortly I will prepare a similar report for lakefront and golf building lots.
Tuesday, September 22, 2009
Reynolds Plantation - Reynolds Landing merge
Reynolds management announced yesterday that membership programs for Reynolds Plantation, Reynolds Great Waters, and Reynold Landing will be merged. Basically, this adds one new course for the Plantation owners and opens multiple memberships to Reynolds Landing owners. Reynolds Landing will also be renamed The Landing at Reynolds.
This change seems to me to benefit all three communities, and it significantly upgrades the status of Reynolds Landing (now The landing at Reynolds)...the developer has made significant upgrades to the infrastructure during the past 3 years and it is solidly included in the new Lake Oconee Academy school zone.
This change seems to me to benefit all three communities, and it significantly upgrades the status of Reynolds Landing (now The landing at Reynolds)...the developer has made significant upgrades to the infrastructure during the past 3 years and it is solidly included in the new Lake Oconee Academy school zone.
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