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.
Friday, October 16, 2009
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.
Thursday, August 27, 2009
The "Due Diligence" period when buying lake and golf property
A couple of years ago, Georgia began using a Due Diligence period as an option for buying real estate. Its effect has been to simplify the process for both buyers and sellers between acceptance of an offer and closing.
The Due Diligence period is part of the initial Purchase and Sale agreement by which the buyer makes an offer on the sellers' property. It is a period mutually agreed by both parties during which the buyer conducts all investigation of the property...home inspections, surveys, soil tests, neighborhood eveluations...whatever the buyers choose to do to assure themselves that they wish to proceed to closing.
The typical Due Diligence period ranges from 7 days to a month, and during that period the buyer may terminate his agreement and have the earnest money refunded, no questions asked. Obviously, the seller wants this period to be as short as possible, while the buyers want as much time to evaluate the property as they can get.
If the buyer finds deficiencies in the property, there is a proceedure for revealing the deficiency to the seller and negotiating a solution...either the seller fixes the problem, or a price is agreed to reduce the purchase price and enable the buyer to fix it after purchase.
Advantage to the buyer?..the contract can be unilaterally terminated and the earnest money refunded for any reason during the Due Diligence period.
Advantage to the seller?..the property is "off the market" for a limited period of time; once the buyer passes the Due Diligence period without terminating the agreement, and any other special stipulations are met (there may be a financing contingency that extends beyond the Due Diligence period), the earnest money is non-refundable.
My observation is that, properly handled, the entire process is less prone to dragging out over weeks or months, and both parties know exactly what is expected of them.
The Due Diligence period is part of the initial Purchase and Sale agreement by which the buyer makes an offer on the sellers' property. It is a period mutually agreed by both parties during which the buyer conducts all investigation of the property...home inspections, surveys, soil tests, neighborhood eveluations...whatever the buyers choose to do to assure themselves that they wish to proceed to closing.
The typical Due Diligence period ranges from 7 days to a month, and during that period the buyer may terminate his agreement and have the earnest money refunded, no questions asked. Obviously, the seller wants this period to be as short as possible, while the buyers want as much time to evaluate the property as they can get.
If the buyer finds deficiencies in the property, there is a proceedure for revealing the deficiency to the seller and negotiating a solution...either the seller fixes the problem, or a price is agreed to reduce the purchase price and enable the buyer to fix it after purchase.
Advantage to the buyer?..the contract can be unilaterally terminated and the earnest money refunded for any reason during the Due Diligence period.
Advantage to the seller?..the property is "off the market" for a limited period of time; once the buyer passes the Due Diligence period without terminating the agreement, and any other special stipulations are met (there may be a financing contingency that extends beyond the Due Diligence period), the earnest money is non-refundable.
My observation is that, properly handled, the entire process is less prone to dragging out over weeks or months, and both parties know exactly what is expected of them.
Wednesday, August 19, 2009
Survey recommended for Lake Oconee lakefront and golf property
A survey is recommended prior to buying any real estate. I will focus on the reasons relevant to buying property on the lake and in gated communities.
Lakes Oconee and Sinclair are managed by Georgia Power Company, and the actual lakefront is actually leased from Georgia Power (there are some exceptions on Sinclair). All buildings and permanent structures must be no closer to the water's edge than either the Georgia Power property line, or 65' to 100', depending on the county, whichever is greater.
An "as built" survey will show whether there is any incursion over this line. In one case, the lakeside deck was about 6" over; the seller was unaware of this and it required the sellers' obtaining a waiver from Georgia Power. No problem, as long as the new owner knew about it before completing the sale. The buyer had paid for the survey and it gave him the information he needed during his due diligence period.
This survey will also show the location of seawalls and docks, which will be needed should the owner decide to renovate or alter the dock in the future.
In two other instances, golf properties were found to have an incursion (by the developer) onto the owners' property...in one instance, the cart path and part of the ladies' tee were actually on his lot. In another, a small section of a cul-de-sac was the incursion. In each case, the owner had the option of pursuing the issue legally, but it was critical information that could have derailed a future sale had it not been know and disclosed to future buyers.
A survey for a typical lot around an acre or so costs around $400, and can benefit both the buyer and the seller.
Lakes Oconee and Sinclair are managed by Georgia Power Company, and the actual lakefront is actually leased from Georgia Power (there are some exceptions on Sinclair). All buildings and permanent structures must be no closer to the water's edge than either the Georgia Power property line, or 65' to 100', depending on the county, whichever is greater.
An "as built" survey will show whether there is any incursion over this line. In one case, the lakeside deck was about 6" over; the seller was unaware of this and it required the sellers' obtaining a waiver from Georgia Power. No problem, as long as the new owner knew about it before completing the sale. The buyer had paid for the survey and it gave him the information he needed during his due diligence period.
This survey will also show the location of seawalls and docks, which will be needed should the owner decide to renovate or alter the dock in the future.
In two other instances, golf properties were found to have an incursion (by the developer) onto the owners' property...in one instance, the cart path and part of the ladies' tee were actually on his lot. In another, a small section of a cul-de-sac was the incursion. In each case, the owner had the option of pursuing the issue legally, but it was critical information that could have derailed a future sale had it not been know and disclosed to future buyers.
A survey for a typical lot around an acre or so costs around $400, and can benefit both the buyer and the seller.
Thursday, July 23, 2009
Searching for Lake Oconee lake property and golf property in Reynolds Plantation
Reynolds Plantation, Reynolds Landing, and Great Waters are gated golf communities developed by Reynolds/Linger Longer Communities. They are absolutely excellent properties...well-run, well-maintained, and offering a great selection for those who want to be in a gated community. BUT...
Many people searching for Lake Oconee properties begin their search by contacting Reynolds directly. Reynolds markets their corporate-owned properties around the U.S. and around the world very successfully. Reynolds properties tend to be, on average, priced 10% to 50% higher than comparable properties in other gated communities...Harbor Club, Cuscowilla, Del Webb, Waters Edge. Some seekers become discouraged by the prices in Reynolds, and don't realize that there is a whole world of property available in other gated communities, as well as "outside the gates", at a wide range of prices. The agents who work directly inside Reynolds DO NOT SELL, OR SHOW, properties outside Reynolds. Further, there may be a tendency to show recently released corporate lots/homes, then their own resale listings, then, as a last resort, those listed inside Reynolds by "outside the gates" agents.
Bottom line: You may be wise to establish contact with an "outside the gates" Realtor first, and gain exposure to the entire range of properties available at Lake oconee.
Many people searching for Lake Oconee properties begin their search by contacting Reynolds directly. Reynolds markets their corporate-owned properties around the U.S. and around the world very successfully. Reynolds properties tend to be, on average, priced 10% to 50% higher than comparable properties in other gated communities...Harbor Club, Cuscowilla, Del Webb, Waters Edge. Some seekers become discouraged by the prices in Reynolds, and don't realize that there is a whole world of property available in other gated communities, as well as "outside the gates", at a wide range of prices. The agents who work directly inside Reynolds DO NOT SELL, OR SHOW, properties outside Reynolds. Further, there may be a tendency to show recently released corporate lots/homes, then their own resale listings, then, as a last resort, those listed inside Reynolds by "outside the gates" agents.
Bottom line: You may be wise to establish contact with an "outside the gates" Realtor first, and gain exposure to the entire range of properties available at Lake oconee.
Wednesday, July 15, 2009
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!
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!
Wednesday, July 8, 2009
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
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
Subscribe to:
Posts (Atom)
