Category Archives: sellers

Suwanee, GA, Market Report, April, 2013

Friday, 17 May 2013 11:33

Written by Lane Bailey

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Market stats for Suwanee, GA, April, 2013 indicate that there were 353 properties on the market (up from 337 last month). Overall, there was about a 4.8 month supply of properties (up from 4.8 last month). April had 92 sales. Compared to April, 2012 (75), this year was WAY up, but inventory was down compared to 2012 (426). There were 65 sales last month, so this month rocked last. I think that part of the sales for this month were delayed from last month.

In the Under $200k arena, there were 56 listings in Suwanee, GA, with about a 2.6 month supply (compared to 3.5 months supply last year). This April’s sales were 24 (28 last year, 16 last month). It used to be a county leader, though, for now it is moving back to one of the best price/locale segments again. The next level up is coming up fast, though. Sales were likely limited by constricted inventory. Last year at this time, there were 117 listings.

Between $200k and $400k, there were 184 listings for sale (200 last year, 177 last month), and 4.5 months of supply. Sales in April, 2013 were 54 (38 in March), compared with 35 for the same period in 2012. Sales have been consistent for the last few months, but had fallen off somewhat, but may have started a recovery. I’d like to see it stay up past 50 sales or so for the next couple of months. This shouldn’t be a “peaky” market/price segment. Unlike most of the county, this is the largest price segment in the area, and its direction plays a major part in how the area looks. Make no mistake, this is still basically in Seller’s Market territory.

From $400k to $600k, there were 65 homes on the market. The absorption rate was at 8.5 months (8.7 in March). There were 11 sales in April (6 last month)… up from 10 last year at this time. Looking at the three month average, there were 23 sales this year and 24 for the same period last year. This segment had become dramatically stronger in the last couple of months.

In the $600k to $800k arena, there are 20 listings, with about a 6.7 month supply. Sales at this level are not consistent, but there were 2 sales this month (3 last month). Looking at one month makes the numbers jump around. For the last three months, sales were 9… For the same time last year, the sales were 6. With the huge decrease in listings over the last couple of months, I was looking for this to become one of the strongest $600k-$800k area in the county. It is fairly strong right now… we’ll have to see if it holds.

The range from $800k to $1m, there are 11 homes listed and 33 months of inventory on the market. There were only 4 sales at this price level in 2011. There were 7 in 2012. This is a tough segment to try to sell in right now, but if inventory stays low, it won’t be quite as rough. But there still needs to be some more sales activity. There was 1 sale in March.

In Suwanee, GA, Above $1m, there are 17 properties listed. The current absorption rate indicated about 25.5 months of inventory, but because of the smaller numbers of sales, this could be significantly impacted by just a couple of sales. In this segment, we should be seeing reduced inventories… There were 25 homes listed in this segment at this time last year. There was 1 sale in April, but 2 in the Feb-Apr time frame, 4 the year before.

Suwanee, GA is a suburb of Atlanta in Gwinnett, Forsyth and (just a little bit) in Fulton Counties. The population is 2000 was 8,725, but that only included the area inside the city limits, and it had seen tremendous growth since that census. Money Magazine rated Suwanee in the “Top 10 Best Places to Live” in 2007, and it is one of the wealthiest parts of Georgia. Recently, the City of Suwanee has revamped their old town, adding a large park with a bandshell, condos, town homes and small businesses. It is also home to North Gwinnett High School, Peachtree Ridge and Collins Hill. I have a page dedicated to Suwanee Market Data.

Atlanta Metro Zillow Home Value Index

Atlanta Metro Home Values – Interactive chart

It’s the Photos…

Wednesday, 15 May 2013 08:19

Written by Lane Bailey

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One of the most important things you can do to make your home stand out, whether it is on the MLS, Zillow, Trulia, Craigslist or some other site, is to have exceptional pictures. Not just for bazillion dollar homes, either…

Vivienne galleria, in the 2nd arrondissement of Paris. This panorama is made from 6 portrait pictures taken at 10mm (16mm in 35mm equiv.), f/8.0 and ISO 100. 3 exposures were blended to extend dynamic range and keep details in heterogeneously lit areas. All work was done with Hugin, Enblend, Enfuse and Gimp. (Photo credit: Wikipedia)

There are some challenges, like vacant houses or those that really could use some freshening, but still, pictures are the first step in selling your house. Video is nice… and virtual tours can add to the pictures… but in the end, having 5-10 great pictures, along with 15-20 good or better pictures (our local MLSs only accept 25 pictures) can be what gets eyeballs INSIDE your house.

Where the problems start are that few real estate agents take the time to learn how to shoot good pictures, or worse yet, they think that grabbing a few pictures with their phone will be just fine. I know, phones have come a long way… but that doesn’t mean that they take pro-quality pictures.

Even better would be to hire a photographer to shoot the home. Again, most agents just don’t feel that “this listing warrants that type of expenditure”. Oddly, I have had agents tell me that when we were talking about $1M+ homes… If they aren’t willing to hire a pro for a “seven digit home”, when are they?

Image created using the redscale technique with Kodak MAX 400 film. (Photo credit: Wikipedia)

Luckily, I have a background in photography… and I still have hired in pros to shoot some of my listings. It is simply too important.

But there is another problem that I run into… although not as frequently… that is manipulated images. A little tweaking is fine, and some HDR shots might even be appropriate (HDR is High Dynamic Range, allowing both highlights and shadows to retain detail). But, I see large areas of homes being digitally enhanced. In fact, there is a service that digitally adds furniture to listing photos.

Of course, there actually IS a place for digital manipulation. I have used a service that allows prospective buyers to “digitally remodel” a house. They could go into key rooms and digitally alter details like wall and trim colors, floor surfaces and cabinetry and counters. The big difference is that THEY started with a true representation of the room, and THEY made the changes. They weren’t presented with an unrealistic portrayal of the area.

Some common things that get edited that might be ok would be trashcans by the street (seems easier to me to move them…) or a reflection of the photographer in a bathroom mirror. But some things that cross the line… at least in my mind… are editing out power lines in the backyard, getting rid of stains on the carpet, cracks in the driveway and other defects which are factually accurate.

One direction that we have as REALTORS® is that we HAVE to honestly represent the property. And as real estate licensees, we aren’t allowed to hide or lie about defects of which we have knowledge. Advertising a proeprty should put it in its BEST light, but it should be honest, as well.

Lilburn, GA Market Report, March, 2013

Friday, 10 May 2013 12:26

Written by Lane Bailey

1 Comment

Market stats for Lilburn, GA, March, 2013, indicate that there were 188 properties on the market, up 5 from last month. Overall, there was about an 3.8 month supply of properties and 58 properties that closed (sold) in March. It was a slight increase from last year’s sales (51) and from February (47 sales). The Absorption Rate notched down slightly. Lilburn had been among the weakest of Gwinnett County, GA, cities I track. But, at 3.76 months of inventory, it is strong now. Six months is considered balanced, lower is a seller’s market and higher is a buyer’s market.

In the sub-$200k arena, there were 123 listings, with about an 3.1 month supply with 44 sales. This represents most of the sales in the market area. Sales were up a little from last month (39), and from last year (41). While the Absorption Rate isn’t as low as many other areas, sales are strong, and I’m think we are in a comeback for Lilburn. At 3.10 months of inventory, with a few months of stats getting better, we’re there.

Between $200k and $400k, there are 53 listings for sale, and about 5.3 months of supply. This segment had been quite weak for months, and had stalled a little, but came back with a vengeance… only to stall a bit again. There were 14 sales compared to 7 last month and 9 last year. Lilburn has never been seen as a luxury market. The decrease in listings has really helped. I’m still not as confident about this portion of the Lilburn market coming back quite yet… It is strengthening, just not as consistently as I’d like. July month was quite strong. April was strong… We are slightly in Seller’s Market territory.

From $400k to $600k, there are just 9 homes on the market. The absorption rate is 27 months. There were 0 sales in March. Poised for a comeback, but an increase in listings and weak sales don’t give the right ingredients for that to happen. To start with, we can’t have 7 month blank spots in sales (none from Aug11 through Feb12). If we can keep up a sale each month on average, this one will be back.

From $600k to $800k, $800k to $1M and Above $1M, there are 3 listings (combined), but too few sales to have any sort of reliable number of months of inventory. March posted the first sale since August, 2010. It was in the $600-$800k range. One of the listings is above $1M and one between $800k and $1M, and there is no market activity in the last 12 months for those ranges…

Lilburn is in Gwinnett County, GA, just outside of Atlanta. As of the 2000 Census, there were 11,307 people in Lilburn, but that is only including people in the city limits, and there has been a lot of growth since 2000 in Gwinnett County. It was incorporated in 1910. Lilburn is home to Parkview High School, and also has students in the Brookwood, Berkmar and Meadowcreek clusters. It is also home to Killian Hill Christian School, Providence Chrisian Academy, St. John Neumann Catholic School and Parkview Christian School. Possibly the most famous resident of Lilburn is General Beauregard Lee, a groundhog with a better winter prediction record that Puxatawnee Phil up in PA. Dominique Wilkins, formerly of the Atlanta Hawks also lives in Lilburn.

Atlanta Metro Zillow Home Value Index

Atlanta Metro Home Values – Interactive chart

I have a page dedicated to Lilburn Market Data.

Garage Values…

Wednesday, 08 May 2013 11:45

Written by Lane Bailey

1 Comment

I’ve been working on some statistics for valuing additional garages. It is tough. They are a specialized addition, not unlike equestrian facilities, pool or tennis courts are for other families…

ROD WORKS SHOP (Photo credit: ATOMIC Hot Links)

Appraisers have been all over the map, but for the last couple of years they have consistently under-valued enthusiast garages. I have seen $50k-$70k garages valued under $10k during the appraisal process.

A large part of that is due to the fact that actual market value numbers are seldom worked up for specialty garages. The buyers see the additional value, and of course the sellers see the additional value. But too often, the appraisal gets in the way of completing the sale.

As a real estate agent, I can NOT do appraisals, but I can provide limited guidance to appraisers to help them see the additional value that should be added for an enthusiast garage.

For a recent property, I worked up an area wide study of similar garages. The results were a little surprising. Keep in mind, these were specific to the type of garage I was trying to find comps for… in this case, the house had an attached, over-sized 2 car garage and a detached VERY over-sized workshop garage (around 900square feet). I controlled price range to be similar to the subject home. Looking for direct comps was fruitless, but I was able to find other homes with detached garages, generally in the 500sf range. In each case, there was only one home with the bonus garage. So, I looked for comparable homes without the bonus garage to compare the difference in prices.

Subdivision 1 – Average difference was $23,300.
Subdivision 2 – Average difference was $10,500.
Subdivision 3 – Average difference was $53,615.

An aerial view of housing developments near Markham, Ontario. Photo by IDuke, November 2005. (Photo credit: Wikipedia)

In the case of subdivision 2, there were only two houses, one with and one without the big garage. The house without the big garage had been fully updated with a new kitchen, granite counters, stainless steel appliances, upgraded bathrooms, etc. The house with the garage had laminate counters, old appliances and had not been updated for at least 15 or 20 years of its 33 year life. That would lead me to believe that the market values of the homes was actually considerably wider than it first looks. And, I believe the opposite to be true of Subdivision 3… the Garage Home was considerable nicer than the non-garage comparables.

However, this shows pretty solidly that the additional garage is more likely worth $20k-$30k, rather than the $5k-$10k that many appraisers will initially allow for the structure. That also puts it in line with Remodeling Magazine’s annual Cost vs Value study garage data. That puts the mid-range garage cost at around $46k while the value at sale is around $30k.

Appraisals are great when you are looking at a cookie cutter home. Those are easy… it’s when the mold is a little different that things get sticky. Of course… you need an agent that is willing to invest the time to fight a low appraisal. Even as a buyer, if the appraisal doesn’t come back at a price the seller can work with, you won’t be able to get financing… Give Lane a call.

Norcross, GA, Market Report, March 2013

Monday, 06 May 2013 11:02

Written by Lane Bailey

0 Comments

Market stats for Norcross GA, March, 2013 indicate that there were 136 properties on the market, down 7 from last month. Overall, there is about a 3.6 month supply of properties. The last year has been fairy strong… it hasn’t slowed much, if at all. March saw 44 sales, well up compared to the 32 for February, but down compared to the 51 for March last year.

In the sub-$200k arena, there were 72 listings, with about 3.0 month supply. Sales are up from last month and way down from a year ago in this segment, which is the main driver of sales in this area (25 v 20 in Feb13 & 42 Mar12). For the last two years, the AR has been tilted in favor of sellers. This still looks like one of the strongest price/area segment in Gwinnett County, GA. At a 2.96 month A/R, this is pretty strong for sellers.

Between $200k and $400k, there were 41 listings for sale, and about 3.8 months of supply. This segment had been weakening for the last few months. But, the 15 sales were up from last year’s 11 sales, and last month’s 9 sales. Even though it isn’t as gangbusters as some of the other areas, it is certainly better than the 28 months of inventory we had in December, 2010. I think this is starting to look like a pretty settled market here…

From $400k to $600k, there were 20 homes on the market. The Absorption Rate is around 8.6 months. The AR had been fairly steady all summer, then shot WAY up in September/October. March’s 4 sales were up from the 3 last month and from last year’s 3 sales. This had actually been a pretty good area for homes in this price range to sell… The good news is that it only takes a few sales to put it back in a balanced range long term. In June we were at just 5.1 months of inventory and five months ago it was 42 months…

In the $600k to $800k arena, there were 2 listings on the market. The Absorption Rate is at 12.0 months of inventory… but with only 4 sales in 2010 and 4 sales in 2011, obviously it is easy to bump one way or the other. One reason for the strong looking Absorption Rate last month was that there were so few listings. The were 0 sales for Mar13, 0 for Feb13 and for Mar12.

The range from $800k to $1m, there were 0 homes listed on the market and 0 sales in February. There were no sales last year. Unfortunately there isn’t enough data for a good A/R number.

Above $1m, there was 1 property listed. But because of the smaller numbers of sales, the absorption rate could be significantly impacted by just a couple of sales. There is simply not enough activity for an A/R figure. The last sale was January 2011.

Norcross, GA is a suburb of Atlanta in Gwinnett County. The population is 2000 was 8,410 but that only included the area inside the city limits, and it has seen tremendous growth since that census. The City of Norcross revamped their old town a long time ago, and it has served as a model for other towns in the area. It is also home to Meadow Creek and Norcross High Schools. One of the things that Norcross is known for locally is the beautiful older homes in the downtown area. They have maintained their historic flair quite successfully.

I have a page dedicated to Norcross Market Data.