Archive for September, 2007
New Birmingham Elementary School Plan Unveiled and New High School Questioning Begins
categories: Milton Real Estate, Schools
School was in session Tuesday night in the Summit Hill Elementary cafeteria as parents and local residents where instructed on the details of the new elementary school to be built on Birmingham Highway and Wood Road.
About a hundred or so people gathered to learn and ask questions about the new school and while a good bit of the information was mundane, there were a few interesting tidbits. First, the mundane:
- The school will open in August 2009.
- Construction will begin Jan-Feb 2008.
- The design is the standard Fulton County “prototype elementary”. It will be one story with 109,000 sq. ft.
- The school is designed for 850 students in the classrooms. The “core facilities” like the cafeteria and media center are designed for 1000 students in case (for when?) portable classrooms are needed.
- Redistricting will not begin until October 2008 and there will be a series of meetings on the topic at that time.
We already knew most of that stuff. Here is the new stuff what I learned:
- Only 24 of the total 40 acres are going to be developed. A 50 ft buffer will be maintained on the northern side of the site adjacent to White Columns.
- Approximately 200 elementary age children live in White Columns. There is no “connection” currently planned between the school site and the neighborhood. I think it would be great if the neighborhood association and the school board could collaborate to create a gate and pathway of some sort to allow kids to walk/bike to school. It would be good for the kids and good for the roads. This arrangement exists in other parts of North Fulton, for instance between Findley Oaks Elementary School and the Wellington neighborhood.
- Two entrances off Birmingham Highway approximately 650 feet apart are proposed: one for car pool and the other for teachers/staff and buses. No traffic signals are currently planned and the School Board representatives said they defer to the State Department of Transportation on this because Birmingham Highway is a state highway. There was a lot of questioning and concern from the audience about the two proposed entrances, the amount of traffic and the safety of not having traffic lights. [I will note that upon thinking about it, Crabapple Crossing has two entrances probably closer than this with no traffic signals. The traffic does not move as fast on that part of B’ham Highway and they have a traffic officer on site.]
- No access to the school is planned from Wood Road. The only way to get into the school will be from Birmingham Highway. With 200 kids living in White Columns, getting them to the school will be interesting. The only portion of White Columns with access to B’ham Hwy is gated and both Wood Road and Nix Road are dirt. Residents of those dirt roads aren’t going to want White Columns traffic cutting through from Freemanville to B’ham Hwy. White Columns kids living in the original development are going to have to go north to Birmingham Road and over to Birmingham Hwy traveling three or four times as far as the bird would fly.
- The proposed playground space is only 2 acres not including a pad for future portable class rooms if ever needed. Some attendees questioned whether this was enough playground space. At Summit Hill, the lack of playground space is one of the constraints of the facility. It is crazy that on 40 acre sites the kids only get 2 acres of playground space. Let’s take advantage of the space.
- The septic system for the new school is planned for 100,000 gallons and is different from the one at Summit Hill in that it is some sort of anaerobic spray process that also includes a subsurface drain field. Apparently this is more state of the art. The drain field is going to take up a bunch of acres, however, we were told that additional play fields could not be built on top of the drain field because it would cause a change in the soil composition. I find it hard to believe that a bunch of 50 pound bipeds scurrying around kicking a ball is going to affect the dirt that much - and I’m not an engineer either.
New High School Discussed
The more interesting discussion revolved around the new high school proposed to be just east of the elementary school at Wood Road and Freemanville Road.
I thought that School Board member, Katie Reeves, did a great job stating the obvious - and I don’t say that sarcastically. I think that people forget that if public decisions were easily made we’d never have any controversy and we’d have a smoothly running society. We wouldn’t be fighting a war in Iraq; there would be no homeless people and everyone would have access to adequate health care in this country.
In fact, public decisions invariably require tradeoffs and we elect people to use their judgment to make these decisions. We provide them with staff who do countless hours of research and analysis to inform their judgment. As everyday citizens, we see our particular slice of reality. As elected officials, they see more slices of reality. Reeves, I think, emphasized this well.
She said that five sites were evaluated with multiple criteria that included topography, geographic area, land price, how many property sellers were involved and their willingness to sell. According to Reeves, the Freemanville / Wood Road site was the best of the five and approved by a vote of 7–0 by the Board.
I’m not saying that the site is a good site, even though it might be better than the other four. Personally, I’m opposed to the site just because I think it will be detrimental to the character of Milton. Milton High School was a pretty big pill to swallow for the Crabapple area and while it is choking it down, a Freemanville High School would be an even bigger pill for the area.
However, I don’t have an alternative – or course, I don’t have access to the Board’s data analysis either ;->. Prior to last night my alternative was to reuse the old Milton High School site. However, Reeves explained that that site is only 42 acres some of which is wetlands. That site is not big enough to build the “high school of today” with all the amenities that the modern school has. The School Board has a policy that it will offer the same amenities to every student in the system and that the students who are currently going to school in the old Milton High School (Connected Academy and Independence High School) are doing so voluntarily, which apparently makes it OK to provide “sub standard” amenities.
I’m a problem solver by personality and I find it frustrating to not be able to figure out a better solution to the location of the new high school problem. Our kids must have a high school somewhere, but where? After attending the meeting last night, I do know that the School Board’s heels are dug in and they are moving ahead to start addressing some of the watershed issues with the proposed site.
Posted by Kevin Warmath | Currently 3 Comments »
Market Conditions and Zero Down Payment Home Purchases in Alpharetta and North Fulton
categories: Alpharetta Real Estate, Buyers, Local Market Conditions, Sellers
Hello, Buyers: There are 1,004 homes for sales in North Fulton (Alpharetta, Roswell, Johns Creek and Milton) between $225,000 and $500,000. If I were personally looking to buy, I’d be in the market.
It’s a buyers market yet people tell me every day that they don’t think they can buy a house. Some buyers are scared by the recent mortgage industry trouble and don’t think they can get approved. Other buyers think that they should wait longer because prices will continue to fall. Let’s examine that thinking.
I’m not bankable after the sub-prime meltdown
The troubles in the mortgage industry have given some people the unwarranted impression that they can’t get a mortgage, particularly as a first time home buyer. The facts are that the bulk of the sub-prime mortgage crisis was caused by “low doc”, “no doc” or “stated income” loans failing. Basically there were loans available where all the borrower had to do was verbally tell the bank what their income was. The interest rate wasn’t as good as “full doc” loans but, heck, it was a loan and it was often used by investors to purchase investment property.
The problem was that it was abused; people misrepresented their income and ultimately defaulted, particularly as interest rates inched up, as many of these loans were variable rate. Most, if not all, major lenders are not offering the “no doc” loans like there were.
However, there are still many zero down payment loans available. Wells Fargo, for instance, has six different zero down loans to chose from depending on your specific situation with purchase price of up to $417,000. In North Fulton, there are 811 homes to chose from between $225,000 and $417,000. Do you think we could find one that would work for you?
If you have an income (documenting it would be nice) you can get a loan, regardless if you have any money to put down.
The market is still going down; let’s wait some more
The market is definitely slower than a year ago, but mostly just in terms of the number of homes sold. The average sales price is holding pretty steady and in North Fulton the Sales Price to List Price ratio is only down one percentage point to 96%.
The slowness in this market is notable in fewer homes being sold and the average time on the market going up. The table below shows sales data from August 2006 versus August 2007. The data is only for homes listed with a realtor, so it doesn’t include private sales. It is also for resale homes only and does NOT include new construction.
Compared to 2006, $45M less real estate was sold in North Fulton in 2007 and 125 fewer properties were sold. Interestingly, though, the average sales price is UP over $30,000.
| Year | Sales | Volume | Avg Sales Price | Avg List Final Price | Avg Original List Price | Avg Days on Market |
|---|---|---|---|---|---|---|
| 2006 | 398 | $166.5M | $418,432 | $428,984 | $436,687 | 70.3 |
| 2007 | 272 | $120.9M | $444,675 | $462,977 | $474,917 | 94.3 |
My opinion is that the “good houses” are selling and they are still selling for a decent price. Houses that are not in top condition or “challenged” in some other way are either not selling or dropping off the market. If you are a seller, you need to be aware that you have more competition – 1,004 homes on the market between $225k and $500k this year versus 832 the same time last year. This is where the price pressure that sellers are feeling is coming from.
The difference between the east side and west side of GA-400
The numbers above are aggregate for North Fulton. When you look at just the east side, the average sales price has actually dropped about 2% from $431k to $422k in the past year, but the days on market hasn’t gone up as much as on the west side. The average sales price on the west side has gone up from $403k to $478k. I attribute this difference mostly to the affect that new construction on the west side is having on resale values: you can barely find new construction under $700k and the resales are taking advantage of this by bumping their price and daring buyers to find something cheaper – even in this market!
What does all this mean?
If you are considering buying, I think that now is a good time. Prices aren’t going to go that much lower - and on the west side they are actually still going up significantly. Interest rates are at or below 6% in many cases and there are loan programs to help you with down payment.
If you do the math, a $300k loan at 6% for 30 years is roughly $1,800 per month. Throw in a little for taxes an insurance and you are at $2000/month. Compare that to your rent and then give me a call!
Posted by Kevin Warmath | Currently 3 Comments »
Alpharetta Scores Culinary Coup with Whole Foods; Johns Creek Welcomes Super H Mart
categories: Alpharetta Real Estate, Johns Creek Real Estate, Local Affairs
They say that you can measure a town by the quality of its restaurants – and there are some decent places to eat in Alpharetta and Roswell. For instance, I enjoy Pure Tacqueria in downtown Alpharetta and think they have the best quacamole around. Plus they give you a ton of it.
However, if you live in the Atlanta area and you’re planning on having “a nice night on the town” you’re most likely going to head to Buckhead. From Alpharetta, that is a short 20–minute drive down GA-400.
Atlanta in general measures pretty well on the restaurant scale. But if you want to measure suburban areas like North Fulton, I think you are better off considering the grocery stores rather than the restaurants. After all, with a family of five, my family spends more of our time and money at the grocery store than in restaurants.
I’ve previously written about grocery stores in North Fulton. We have a Trader Joes, Harry’s Farmers Market, Fresh Market, Whole Foods and the ubiquitous Krogers and Publixes. The new development is that Whole Foods is planning on opening another store in Alpharetta to anchor the new (under development) Prospect Park at Old Milton Parkway and GA-400.
The existing Whole Foods in Johns Creek is an awesome store, but it is a hike for residents of Roswell, Alpharetta and Milton to get there. The newly proposed store will be the largest Whole Foods store to date and will have SIX restaurants inside.
Whole Foods was not originally planned for Prospect Park and its inclusion has created some changes in the traffic design. The “curb cut” to allow turning lanes needs to be extended and there is some issue with the Georgia Department of Transportation about changing the curbing so close to GA-400. The issue will not likely be resolved until after the new year when a new DOT administrator takes over, but all of us food lovers hope the bureaucrats don’t block the grass fed beef. 
Johns Creek also has a great new grocery store called Super H Mart that caters to the growing Asian population in that area. Located at Abbotts Bridge and HWY 141, the Jones Creek store has been open since June and complements the other Super H Mart in nearby Duluth.
It is a great family field trip during the weekend to explore all the variety. First of all, they have a restaurant section inside for lunch where you can eat Japanese, Korean, Chinese or Thai. Plus there is a bakery for desert. But what is most fun is that you can try to figure out what dragon fruit is or what you’d do with a durian. Of course, you can get your dried anchovies and squid (you can even sample it if you want) and you can get your fresh fish prepared any one of eight ways while you wait. And don’t forget your 50 lb. bag of rice!
The location of these new groceries in North Fulton is just another indicator of the demographics and future growth potential of the area. Even in this current business cycle, where real estate has been set back; the future prospects for North Fulton are still positive as evidenced by the decisions of the grocery chains like this.
Believe me, Whole Foods does its research before going into a market and they look for a number of indicators including percentage of college educated people, which is a nice way of saying people who have money to spend. Businesses like Whole Foods (Texas based and rated by Fortune Magazine as the #5 best company to work for) and Super H Mart (New York based) survey the entire country when looking for expansion opportunities and they have chosen North Fulton.
My stomach and I are glad they did.
Posted by Kevin Warmath | Currently 1 Comment »
Wired Funds to be Required in Georgia Real Estate Transactions
While every trend is towards wireless these days, Georgia is going wired. At least, for real estate transactions, that is. While going wired in this day in age might sound regressive, Georgia will actually be catching up to what other states already do.
Here’s the problem: When certain mortgage companies went bankrupt last month they wrote a lot of bad checks on the way. HomeBanc, for instance, is said to have written $20M of bad checks for loans that were to close the day they went bankrupt.
The way real estate purchases work in Georgia is that they are handled by a real estate attorney. The attorney collects funds from all parties involved in the transaction (buyer and lender) and disburses funds to the seller, the seller’s mortgage company if there was a loan, the real estate brokers for commissions if they were involved, surveyors, home warranty companies, local governments (for taxes due) … the list goes on. Essentially the attorney is a clearing house for the transaction and manages funds through their escrow account.
What happened last month when the lenders’ checks bounced was that the attorneys were left holding the bag. They paid off seller’s loans, wrote commission checks and disbursed sales proceeds to sellers only to have the buyer’s lender’s funds bounce. The escrow accounts of many law firms in Georgia went negative, a big no no if you’re the escrow account holder. Essentially the attorneys became the lenders for the new buyers, which is not the business they are in.
This left attorneys scrambling to cover the funds. Reportedly some were mortgaging their own property and tapping into credit cards looking for a short term fix.
Here’s the solution: For a longer term fix, the Georgia Bar Association convened to review the “Georgia Good Funds Law”, the law that defines what constitutes “good” money for a real estate transaction.
In the past, lenders were able to mail (FedEx) checks to the attorney a few days in advance or the loan officer could even bring a check to closing. Buyers, if they needed to bring cash to close on the property, could bring a certified check from their bank, or if less than a thousand dollars or so, could write a personal check.
No more, if the lawyers get their way, and I suspect they will.
In the future expect that all funds will have to be wired in advance of the closing. The attorneys want to make sure the funds are really in the bank and this is the only way without waiting for checks to clear.
Here’s the ramification: This means that buyers will have to plan ahead to wire funds. Wiring money is not an instantaneous transaction and can take hours if not a day. Many transactions may become “dry closings,” that is, you sign all the documents but there is no money yet because the wires have not come in. And buyers, keep track of your wire confirmation number. That is the only number that the attorney can use to check if your funds arrived. Your name is not on the wire!
All in all, these changes aren’t necessarily bad, just inconvenient because they will make a closing take longer. In cases where you are selling one property and buying another “back to back” on the same day, you may face some logistical challenges. My advice would be to try to close both transactions with the same attorney. If the first transaction is dry, the second will be dry, too, and sellers are just going to have to be patient in receiving their funds.
Other states have lengthy closings and have been able to make it work: Virginia doesn’t disburse funds to the seller until two or three days after closing and California requires that the deeds be recorded at the courthouse before funds are disbursed and possession taken of the property. That can take over a week.
So look at it this way: Georgia is actually taking a step forward by doing away with paper and personal checks and using electronically transferred money only. It is a safer way for everyone involved, particularly the attorneys.
Now if we could just make some progress in reducing the amount of paper (and FAXing, in 2007 for Pete’s sake) in the real estate contract part of the transaction and make it more electronic, then we’d be making some serious progress!
Posted by Kevin Warmath | Currently 2 Comments »
Birmingham Highway - Wood Road Elementary School Informational Meeting
categories: Announcements, Milton Real Estate, Schools
This post is mostly informational only. There is a meeting on September 25th at 7PM for the community to learn more about the new school and to ask questions about the school’s features, design, bus transportation and redistricting. The meeting will be held at Summit Hill Elementary School on Providence Road.
This is not a meeting to discuss whether or not there should be a school on the site at Birmingham Highway and Wood Road just south of the entrance to White Columns. That ship has long since sailed.
Personally, I’m not opposed to a new elementary school at that location. (However, what I am opposed to is the proposed new high school and possibly middle school at the other end of Wood Road on Freemanville Road.)
We need another elementary school. It is fitting that the meeting will be help at Summit Hill because that school stands to benefit the most from the construction of a new school. Summit Hill is the most overcrowded elementary school in the Fulton County School System, with an enrollment of 1,008 students, fortunately down from the projected 1,050 students. For anyone who is opposed to a new elementary school, count the trailers there or visit during recess and see where the kids get to play.
The new school is apparently going to be modeled after Renaissance Elementary in Fairburn, which is 
pictured above. The school will sit facing northwest on the site and have an 850 student capacity and 54 classrooms. There will be a 45,000 gallon septic system with fourteen drainfield zones located on the northwest portion of the site.
All access to the school will be off of Birmingham Highway; no access will be from Wood Road.
The projected opening date for the new school is September 2009. Originally it was supposed to be 2008. That is one of the questions that I have: Why was construction delayed? The money was available through SPLOST funding. What I heard is that the City of Milton slowed the project down, but I don’t know that for fact or why they would do that, not that it can be changed now. I’m just curious to know what our elected representatives and newly formed city are doing in this regard. They say they have no control over the new high school.
In the end, though, the school is only a physical building. It is not really a school until you fill it with children and teachers and administrators. The most important thing is not selection of the brick color or the direction the school faces but who will be the principal. That, and, of course, what the mascot and school colors will be.
Posted by Kevin Warmath | Currently No Comments »
Thoughts on 9-11 Anniversary
categories: Stuff I like to talk about
Today, as I walked my kids to the bus stop, I thought that six years ago on this day, the morning was just as clear with a hint of Fall in the air. That morning I was headed to Hartsfield for a flight to Jacksonville and wound up in the Crown Room watching the towers fall. You never forget where you were when the towers fell.
9-11 was like an earthquake; it was a terrible event that happened on a sunny day with blue skies. Today at the bus stop on a similarly clear day, I wondered if the world is any safer or better off six years later. I don’t pretend to know the answers.
I looked down at my kindergartener and thought that she wasn’t even born when 9-11 happened: a true 9-11 generation child. She will grow up with the threat of terrorism like we grew up with the threat of “the bomb.”
In real estate, the best thing about the job is not the houses but the people and helping them realize their dreams. I’m fortunate to meet some great people through my job. Their talents, experiences and interests always astound me.
One particular client is an advertising executive who put together this tribute to 9-11, the victims and our country. This client says what I think we all feel much better through his work…check it out.
http://www.youtube.com/watch?v=KqgICamcuTY
NEVER FORGET. As bad and as literally miserable the protracted war against terror continues to be, never forget 9-11. NEVER.
Posted by Kevin Warmath | Currently No Comments »
The Definition of Flat: Home Sales Remain Flat in North Fulton County, Georgia
categories: Alpharetta Real Estate, Buyers, Local Market Conditions, Roswell Real Estate, Sellers
Warning: Statistics lie. Well, actually, people can lie with statistics. If you don’t believe me, check out this book.
With that disclaimer, I’ll tell you that the real estate market in North Fulton county is flat…and I’m not lying, really.
He is my definition of flat: In July 2006, 162 single family homes were sold in North Fulton (Roswell, Alpharetta and Milton), west of GA-400. In July 2007, 163 single family homes were sold in the same area.
Good, we’ve now debunked with one statistic the common misconception that the real estate sky is falling. I can see the headlines now in the Atlanta Journal Constitution: “Atlanta bucks nation trend. Real estate market holds firm.”
Heck, it was just last week when the national media couldn’t get enough of the announcement that for the first time the national average sales price actually declined. Yes, that made a good story; always lead with the blood. There is only one problem: I don’t really care about the national average. I mean, I do, but only because it is some sort of global indicator of the health of the economy. But in the end of the day, I care about the national sales average about as much as I care about the temperature of the oceans. I do care about the global environment but, damn it’s hot here and I want to know when it is going to rain next. Real estate is local, too, and the fact that the national average is down doesn’t help me in my market.
The Laws of Real Estate Market Analysis
Law number one is that real estate is local. Law number two is that, not only is it local, it also varies significantly by price point. Law number three is that new construction and resale homes are different markets.
So, while I can say with perfect certainly and a statistical fact to back me up that the real estate market in North Fulton is flat, if we care to look a little deeper we will see some interesting developments in the last year in this market.
1. If you include the other half of North Fulton (east of GA-400), sales were actually down from last year. Four hundred and four homes were sold in July 2006. A year later only 344 were tallied.
2. Average days on market is up from about 54 to about 63. Plus, the number of homes active in the market increased from 1,859 a year ago, to 2,440 this year. Sellers, you have a lot more competition than you did.
3. The good news is that the average sales price is up over last year, so beware bargain basement shoppers. The west side average price increased from $481k to $488k. On the east side, they had a whopping increase from $391k to $436k.
The Breakdown
But remember, statistics lie. What happens when we break down the market by price range and look at absorption rates, the rate that new homes on the market are absorbed by the buyers. Another way to look at it is the months of inventory on the market. Six months of inventory is considered neutral between a buyer and seller market.
The two tables below show reveal some interesting points about our current market, points that are anecdotally reinforced by my personal experience in the marketplace every day. (Totals don’t add because of omitted data at lower prices.)
Overall inventory is up from 5.2 months in July 2006 to 7 months in July 2007.
| 2006 | $200k to $250k |
$250k to $300k |
$300k to $500k |
$500k to $750k |
$750k to $1M |
$1M to $2M |
$2M | Total |
| Sold in July | 666 | 556 | 1348 | 536 | 127 | 58 | 9 | 3858 |
| Current Inventory | 155 | 183 | 522 | 308 | 148 | 126 | 47 | 1669 |
| Months of Inventory | 2.8 | 3.9 | 4.6 | 6.9 | 14.0 | 26.1 | 62.7 | 5.2 |
| Days on Market | 47 | 45 | 45 | 46 | 56 | 75 | 112 | 154 |
I don’t know that this is exactly earth shattering, but there are two different markets in North Fulton: the market below $750k and the one above $750. Actually, I think the demarcation line is a little lower, but there are definitely two distinct markets. This seems pretty logical. Not everyone has $750k to spend on a house but a lot of people still want to live here and have $400–$500k to spend. That part of the market is still hot…OK, warm, particularly west of GA-400.
| 2007 | $200k to $250k |
$250k to $300k |
$300k to $500k |
$500k to $750k |
$750k to $1M |
$1M to $2M |
$2M | Total |
| Sold in July | 602 | 509 | 1228 | 573 | 125 | 65 | 9 | 3442 |
| Current Inventory | 172 | 207 | 715 | 440 | 181 | 142 | 56 | 2014 |
| Months of Inventory | 3.4 | 4.9 | 7.0 | 9.2 | 17.4 | 26.2 | 74.7 | 7.0 |
| Days on Market | 48 | 52 | 55 | 54 | 66 | 90 | 103 | 131 |
There is one caveat, though. This year, there is more inventory, no doubt, so your home has to be in better condition and compare favorably to increased competition in order to sell. However, even though it is more competitive, good homes in these price ranges still sell relatively quickly (under 60 days) for around 97% of the list price. Operative word was “good”. The junk sits on the market.
New Homes
When it comes to new homes, the picture is a little more bleak. First of all, there is practically no new home inventory below $500k (only 43 homes in all of North Fulton.) When selling your $800k resale home in a market with 17 months of resale inventory, don’t forget that there are 120 new homes in inventory, too. This is where the market has really slowed down: In 2006 there was a 22 month inventory of new homes between $750k and $1 million. In 2007, there is a 45 month supply west of GA-400 and a 33 month supply east of GA-400. Buyers, this is where you can really drive a bargain. Builders are offering huge incentives and resellers are having to lower their prices if they truly want to sell.
Bottom Line
I’m a bottom line guy, so here goes. Markets go up; markets go down. That is reality. No one was bemoaning the poor buyers a few years ago when everything was selling. Now all I hear is woe is me from the media and from the sellers. If you want to sell you home, North Fulton is still a desirable place to live, people are still coming here and home prices are still increasing believe it or not. But if you want to sell, you need to be realistic about your price and the condition of your home. Best thing about this market is that if you are a buyer it is a great time to buy. When was the last time you heard a national media outlet say, “Great time to buy residential real estate in America.” Well, come to North Fulton.
Posted by Kevin Warmath | Currently 3 Comments »
Here’s My Buyer…Do You Want to Sell Your Home in Milton?
categories: Buyers, Milton Real Estate, Sellers
(To the tune of Gershwin’s “I Got Rhythm”)
I got buyers
They’ve got money
They need to move
Who could ask for anything more?
In a buyer’s market, it is a good thing to have buyers if you are a realtor. I work with both buyers and sellers in my business, but my website and blog have always generated more buyers than sellers, which is understandable given that normally people seek out websites and information more often when they are looking to buy than sell.
Given I have this world-wide buyers magnet, I thought that I’d exploit it if you’ll indulge me. You see, routinely when I’m talking to sellers, particularly those who are considering “for sale by owner” or who aren’t terribly motivated to sell, they say “just bring me a buyer.”
These sellers either don’t understand or don’t appreciate how the home selling process really works (which is outside the scope of this post but worthy of another), or more likely they believe that realtors can just manufacture buyers for all shapes and sizes of homes, no matter what their shortcomings, demerits or hideous floral wallpaper are. Many sellers believe that buyers should be about to look beyond the decor and minor defects and that their home is God’s gift to some lucky buyer. It just doesn’t work that way in a buyer’s market.
Well, through the power of the web, while I can’t actually manufacture buyers, I have had some success in attracting them to North Fulton, Alpharetta and the surrounding cities. In the last 18 months or so, almost 1,300 users have registered on www.LiveInAlpharetta.com. Not all are serious, active buyers, but even if 10% are, that is still a significant number. The fact is: web marketing works and my business has proven it.
Traditionally realtors have marketed homes to buyers. Look at any newspaper, magazine or real estate website and you’ll see pictures of homes for sale. Makes sense. The homes are “the bait” to attract the buyers - and remember, everyone wants the buyer. He or she is the one with the money! Just bring me a buyer. That is all I need. Oh, yeah, and it only takes one. (That is another myth to be debunked in a later post.)
I thought that since I do have a bunch of buyers -and buyers are what everyone obviously wants - that I’d promote one here. Let’s flip the sales equation around and instead of marketing homes to buyers, let me market a buyer to a home (seller). Fells a little bit like the girl calling the boy up for a date, doesn’t it? I always loved Sadie Hawkins.
Without further ado, here is my buyer:
Currently residing in Northern Virginia. Wants to move back to GA to be closer to family. Has a home to sell that is on the market and getting decent activity buy no contract yet. Wants to be in Crabapple Crossing Elementary School district, but will consider other good schools in the area. Wants at least 4 BR, with a basement. Swim/Tennis neighborhood would be nice. Thinks that they would be able to possibly move at the end of the year (between school semesters). Price Range: high $500’s to $600k.
If you are a seller out there and thinking of selling but haven’t because you think the market is soft please consider my buyer for a match and contact me. Even if this buyer isn’t a match and you want to sell, please contact me. I have other buyers, as long as you keep in mind that I can’t actually manufacture one to your exact specifications! .
It does feel a little strange pitching a buyer to the seller, but I’ll get over it. In a buyer’s market you would expect there to be more sellers than buyers and that my buyer would have his pick of houses. Indeed, the MLS data bear this out. As of July 2007, in North Fulton (Alpharetta, Roswell, Johns Creek and Milton) there were 581 more homes on the market than in July 2006.
I just thought that since all the sellers seem to be clamoring for buyers - and because my buyer is not quite ready to buy - that I’d post his credentials and see if anyone wants the buyer bait for a change, instead of the other way around.
Posted by Kevin Warmath | Currently 2 Comments »
Download my vCard for your Outlook Contacts
