Tag Archives: real estate

Suwanee, GA, Market Report, June, 2013

Monday, 22 July 2013 08:22

Written by Lane Bailey

0 Comments

Market stats for Suwanee, GA, June, 2013 indicate that there were 3507 properties on the market (up from 350 last month). Overall, there was about a 3.3 month supply of properties (down from 3.8 last month). June had 119 sales. Compared to June, 2012 (93), this year was WAY up, but inventory was down compared to 2012 (455). There were 118 sales last month, so this month was up ever so slightly. The machine has really cranked up over the last couple of months.

In the Under $200k arena, there were 51 listings in Suwanee, GA, with about a 2.3 month supply (compared to 2.3 months supply last year). This June’s sales were 21 (36 last year, 21 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. Last year at this time, there were 116 listings. Sales are being killed by last year’s, but the way the inventory has dropped, there is a pretty good chance that the low inventory is constricting sales.

Between $200k and $400k, there were 190 listings for sale (191 last year, 194 last month), and 2.9 months of supply. Sales in June, 2013 were 73 (71 in May), compared with 42 for the same period in 2012. Sales have rocked for the last few months. 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 62 homes on the market. The absorption rate was at 4.1 months (4.9 in May). There were 17 sales in June (17 last month)… up from 9 last year at this time. Looking at the three month average, there were 45 sales this year and 30 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 25 listings, with about a 4.4 month supply. Sales at this level are not consistent, but there were 7 sales this month (8 last month). Looking at one month makes the numbers jump around. For the last three months, sales were 17… For the same time last year, the sales were 9. 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 12 homes listed and 72 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 17 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 June, but 3 in the Apr-Jun time frame, 2 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

What a Seller Sees in YOUR Offer…

Friday, 12 July 2013 09:41

Written by Lane Bailey

1 Comment

Last week I outlined 5 things you might be able to do to make YOUR offer the winner in today’s real estate market. Now we are going to look at offers from the perspective of a seller…

What is important to a Seller?

English: “The Flower Seller,” a portrait by photographer Joseph Knaffl, taken circa 1916 at his Knoxville, Tennessee studio. (Photo credit: Wikipedia)

To begin with, keep in mind that each seller is a unique individual (or pair of unique individuals… or company with unique individuals overseeing sales of assets/homes). What tops the charts for one seller might hardly merit a mention with another.

Timing. This is huge for some sellers. As mentioned before, the longer the time between contract and closing, the more than can go wrong. And what sellers often worry about “going wrong” is that the buyer will simply back out. But there are also considerations that revolve around the cost of holding the house, like mortgage payments, utilities and maintenance. The seller has likely “disengaged” from this home and invested themselves in another. On the flip side, some sellers might need some time here because they still have to find a house. Offering a fast close, but stating that you are flexible and able to meet the seller’s needs may be a deal-maker.
Financing. First, there is NO excuse to not have a good pre-approval letter. OK, the one acceptable excuse is if you have a “proof of funds” letter and you’re paying cash. If you have the money for a larger down-payment, that might be the deal-maker for you. And at least explore alternative options to FHA and VA financing. FHA or VA may be your best bet… but KNOW they are instead of just assuming. And if you have the liquid cash to make the purchase, talk with your mortgage professional about the option of purchasing with cash and then doing a cash out refi.
Photo taken in Bodie, California. See file name. (Photo credit: Wikipedia)

Inspections. I expect that any of my buyers will want an inspection. However, if you REALLY know what you are doing, buying a house “as-is” instead of subject to an inspection or “due diligence” period can really set the mood for a better deal with the seller. There are dangers, but they might be offset by the savings.
Earnest Money. I almost always recommend that a buyer offer up 1% for earnest money ($1000 minimum). Offering up less just doesn’t seem as serious to me. While seldom do buyers lose it unless they do something egregious, it does look better to sellers.
Price. If you are deficient in one area, you may be able to make up for it in another. I know that isn’t the goal, but it is a reality. You aren’t going to get the best price, while at the same time getting the seller to accept a long closing, riskier lower down payment and loan type, long due diligence period and other non-monetary concessions.

So, let’s put on the Seller shoes…

Your house is on the market, listed at $250k. Sales have been moving along well in the neighborhood, and like almost all sellers, you think your house is “better than average”. Here are three offers to look at. Which one do you think is going to be the winner?

$230k price. No closing costs. 21 day close. $2,300 in earnest money. No inspection.
$250k price. $7,500 in closing costs (3%). 45 day close. $2,500 in earnest money. 10 day due diligence period.
$260k price. $10,400 in closing costs (4%). 60 day close. $1,000 in earnest money. 7 day due diligence period.

I’d love to get some comments as to which offer YOU like most and why.

5 steps to get YOUR offer to be the one that WINS

Wednesday, 10 July 2013 08:06

Written by Lane Bailey

0 Comments

Be the winner…

A couple of years ago all of the strategies revolved around finding ways to get the lowest price out of a seller. Then, it morphed to finding the line where the bank would sell. Over the last few months, the next evolution has come…

Winning the bid.

Often we see good houses come on the market and go under contract in less than a day. These homes are often pulling in multiple offers, some considerably above the asking price. Yet, many buyers are still convinced that we are in a market that favors them. We aren’t… except for a few less desirable neighborhoods or some very high price points.

master_bedroom_2 (Photo credit: lane.bailey)

In order to actually buy a house, instead of just making offers, there are a few steps you can follow to “win the bid”.

Get a serious pre-approval. If your mortgage person isn’t pulling your credit and spending some time getting it, it probably isn’t worth getting. Sellers see an offer with a pre-approval as being MUCH more serious than one without.
Have a down payment. The larger the down payment, the more stable to buyer. Of course, this is going to vary depending on the buyer segment (1st time buyers usually don’t have 20% to put down… I understand that).
Cash is King and FHA is the Stable Boy. FHA loans are the toughest on sellers. Not only does the property need to appraise on value, but it has to meet specific criteria for condition. Most houses meet everything, but an old roof or a missing handrail can turn into anything from a headache to a nightmare for the seller (and the buyer). A cash sale, on the other hand, is pretty assured. Conventional loans fall somewhere in the middle… and VA are more rare, but slightly tougher than FHA on the seller.
Be ready to close ASAP. The longer the seller has to wait between an agreement and a closing date, the more that can go wrong and the more expenses that can get racked up. Aside from the seller’s house payments and utilities, there is lawn upkeep and maintenance on the house. Not only that, but if you are waiting 2 or 3 or 4 months to close, the seller may think you could develop a case of “cold feet” and change your mind.
Price heals all. We used to tell this to sellers… poor condition can be corrected with price. Much to their dismay, that “correction” was usually an over-correction. Now, the shoe is on the other foot. Buyers that have issues with some of the above conditions can “heal” their offers with price. But that “healing” is likely to involve a larger bump in the offer than one might think… Of course, in the end, it comes down to the seller and what is most important to them.

In next week’s post, we’ll look at 3 sample offers and compare them…

Lilburn, GA Market Report, May, 2013

Monday, 08 July 2013 08:38

Written by Lane Bailey

1 Comment

Market stats for Lilburn, GA, May, 2013, indicate that there were 194 properties on the market, up 15 from last month. Overall, there was about an 3.4 month supply of properties and 61 properties that closed (sold) in May. It was a slight decrease from last year’s sales (68) and from April’s (50 sales). The Absorption Rate notched down slightly. Lilburn had been among the weakest of Gwinnett County, GA, cities I track. But, at 3.44 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 126 listings, with about an 2.8 month supply with 51 sales. This represents most of the sales in the market area. Sales were up from last month (38), and down from last year (59). 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 2.84 months of inventory, with a few months of stats getting better, we’re there.

Between $200k and $400k, there are 57 listings for sale, and about 4.9 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 9 sales compared to 12 last month and 8 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. April was strong… We are in Seller’s Market territory.

From $400k to $600k, there are just 9 homes on the market. The absorption rate is 27 months. There was 1 sale in May. 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 Mar12). 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 2 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.

Norcross, GA, Market Report, May 2013

Friday, 05 July 2013 09:10

Written by Lane Bailey

0 Comments

Market stats for Norcross GA, May, 2013 indicate that there were 123 properties on the market, down 4 from last month. Overall, there is about a 2.7 month supply of properties. The last year has been fairy strong… it hasn’t slowed much, if at all. May saw 48 sales, up a little from the 44 last month, but down compared to the 57 for May last year.

In the sub-$200k arena, there were 59 listings, with about 2.3 month supply. Sales are up a little from last month (25) and way down from a year ago in this segment, which is the main driver of sales in this area (27 v 37 – May13 v May12). 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 2.30 month A/R, this is pretty strong for sellers.

Between $200k and $400k, there were 43 listings for sale, and about 3.2 months of supply. This segment had been weakening for the last few months. But, the 16 sales were flat from last year’s 16 sales, but up from last month’s 10 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 18 homes on the market. The Absorption Rate is around 3.2 months. The AR had been fairly steady all summer, then shot WAY up in September/October. May’s 5 sales were down from the 8 last month and up from last year’s 3 sales. This had actually been a pretty good area for homes in this price range to sell… for the last few months.

In the $600k to $800k arena, there were 2 listings on the market. The Absorption Rate is at 6.0 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 was 0 sales for May13, 1 for Apr13 and 0 for May12.

The range from $800k to $1m, there were 0 homes listed on the market and 0 sales in May. 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.