The numbers confirm what we all felt in our guts - according to the Lake Martin Multiple Listing Service - in the second quarter of 2008, sales were down compared to 2007.  Also, just as importantly, the number of active listings was up, therefore keeping a lot of pressure on sellers.

If you recall, in 2007 by June we really had a pretty good idea that we were in for a miserable drought.  I would have thought that meant June 07 waterfront sales would be a lot lower than 2008 (drought tempered).  But I was wrong.  The year to date numbers get even uglier.  If you read my post about the first quarter sales results, you may remember that we had sold 17 waterfront properties through March 31, 2008 versus 43 through March 31, 2007.

If you add the first and second quarters together, I guess someone revised a few sales because the year to date totals at June 30 are 93 for 2007 and 57 for 2008.  Here is a graph to show it:

This graph shows the waterfront sales, through the entire Lake Martin MLS, through June 30 of each year.  Each month is cumulative.  E.g. through May 08, 50 had sold on the entire lake.  7 were sold in June, so at June 30 the Year To Date Total is 57.  Again, I am just trying to show the cumulative effect.

Maybe we have more water in 2008, but Lake Martin also has another thing that is equally potent: more listings for sale.  See the below graph.  Note that in 2007, the total number of waterfront listings for sale peaked at around 450.  Through June 30 we are way past that, at over 500:

I hate  to keep beating this drum, but it always comes back to supply and demand.  We have 10% more for sale this summer than we did in 2007.  This is why sellers must be absolutely focused on their pricing, staging, and marketing.  If we continue to have more overpriced and undermotivated sellers on Lake Martin, look for the “days on market” stat to climb even higher.

(*)Disclaimers: All of the above info was taken from the Lake Martin Area Association of Realtors Multiple Listing Service. Accuracy is not guaranteed but deemed reliable. The above does not include sales by FSBOs or developers that sell privately and not through the MLS. But, I do think that the above represents a very large majority of all sales on Lake Martin.
Related Posts:

Lake Martin Is High, But So Is Real Estate Inventory
Lake Martin Waterfront Sales: April 2008

For all you high overheaders out there, with your glitz and glamour shots, here is why it is so cool that my office shares a wall with a c-store:

Bada bing!! This has been my view out of my office window for the past hour today. Nothing fires me up to sell some Lake Martin real estate more than a stare down from some sort of Norse God of Ice. He graces the side of the “Cheaha Ice Company” truck that occasionally delivers ice to Nail’s Convenience Store here in lovely downtown Kowaliga, Lake Martin. See a zoomed out pic:

The cool thing is I am pretty sure he is only on one side of the truck. The other side is blank. Another cool thing is that his abs are totally discrete, not a parte of the maine of his belly. I also like how his head is disproportionately large compared to his femur. And why the sweatband? I would guess that he doesn’t perspire much. Maybe he is trying to match the blue in his boots and make them really “pop.”

It just goes to show you how much the Lake Martin real estate industry has changed. Over the last 4 years, I can count on one hand how many times I have met clients at my office. Mostly I meet them at their homes or on the way to homes they want to see. It’s much more convenient for them, which is the whole point of a service industry, right?

One more bonus pic, a scary close up (brrrrrrrrrrr):

A Lake Martin Voice reader submitted these questions to me about the Lake Martin real estate market in general. They were so good that I thought we all would benefit from my attempts to answer. Do you disagree? Then reply below and let me hear about it. The RIQ (reader in question) purchased a Lake Martin waterfront home in 2006. Here are my OPINIONS, for what they are worth, I am neither an appraiser nor soothsayer:

1. We arent looking to sell, but gosh, in this environment, is seems like we just bought at the wrong time. What do you think?

I think that 2006 was the peak of the bull market in Lake Martin waterfront property.

2. Will Lake Martin property values ever come back?

I don’t think they have gone anywhere to warrant a “come back.” In other words, I don’t see evidence that prices have dropped, only evidence that they have ended a scorching run of yearly gains. So if by “come back” you mean will prices someday start going up again? Of course. It’s all about supply and demand. In my estimations property values in the period of 2000 - 2006 climbed 30% PER YEAR. No product, not even oil, or bottled water, can sustain that. Since then I think we have had 0% gain for 2 years. Yet, if you average that gain over 8 (2000 - 2008) instead of 6 (2000 - 2006) you still average 22.5% gain per year. I realize you bought in 06, but still you need to know that over the long term (40 years), history has shown us that Lake Martin averages 12 - 15 % per year gain.

3. Do you think our decision on this house will prove to be an œok decision for long term financial objectives?

Don’t mean to sound like a smart Alec, but let me know of another investment that has averaged 12 - 15% per year for the last 40 years. I will start selling it instead of Lake Martin real estate. I am too conservative (and cash poor) of an investor to hop in and out of real estate on the short term. But for the long term, it’s hard to beat. Remember, unlike Tampa or Atlanta or whatever, Lake Martin is not growing geographically. Waterfront footage is fixed. Furthermore, practically every inch of undeveloped (450+ miles) shoreline is owned by either Russell Lands or Alabama Power. It’s not like you have 100 different landowners or developers that potentially flood the market. I believe that Russell Lands is committed to measured growth. The last thing they want to do is flood the market with supply (which is why I think they have pulled back in the last 18 months). Alabama Power isn’t even in the real estate business. About every 5 years they release 15 new lots to lease. On the grand scheme of things, that is not a material amount of supply injection.

4. Do you think we could move our Lake Martin house if we had to?

Absolutely. Even though market wide, the Lake Martin market is still lukewarm, I have been blessed to have sold more real estate so far in 08 than all of 07. That’s not bragging because 07 was pretty pitiful. But an interesting point is that about half of the Lake Martin homes that I transacted this year had already been for sale before, some since 06. So did I sprinkle magic dust on their roofs? Did I go to the back yard and bury 6 statues instead of merely 1 statue of St. Whomever, patron saint of the desperate? No. I concentrated on the holy trinity of real estate: pricing, staging, and marketing. In a buyer’s market, things are still selling, it just takes a longer time. In 2005, it might take 20 days. in 2008, it might take 100. But it will sell. Sure, there is a lot of stuff on the market that is sitting for over 200 days. But, I am highly confident your home can be sold if properly priced, staged, and marketed. Will you make money? Who knows. I don’t know what you paid for it nor what you owe on it. But rest assured, if your goal is simply to “move” it, absolutely it can be done.

Does anyone else have an opinion? Help us all out and comment below. If you can’t see the “Leave a Reply” box below, click the “Continue” button then scroll to the bottom.

Recently two auctions were held at waterfront property on Lake Martin. A quick check with each of the auction companies revealed that neither homes sold for the reserved prices. Both remain unsold at post time.

Here’s the lowdown:

1. 284 Lakeview Drive - The “Waterfall House” at Willow Point - This auction was held on July 20, 2008. I wrote this post before the auction to spread the word. I haven’t talked to anyone that attended, but I spoke to a representative at Albert Burney Auction Company. He said that neither the lot nor the home met the reserved price that day and therefore did not sell at auction. He did say that both properties were available for sale in case anyone was still interested. If you (or someone you know and love) are, let me know.

2. 211 Farm Loop Road - Wind Creek Farms- This auction was held on July 26, 2008, by Deanco Auction Company. It had a published reserve price or minimum bid of $300,000. Apparently that amount was not met because a representative of the company confirmed that it also failed to sell at auction date. Again, if you’re still interested, let me know. I went through this home about a year ago (when owned by a previous family) and have tons of pictures.

View Larger Map

These recent strikeouts remind me of last summer’s Lake Martin auctions. You may remember when another auction company had a big deal where they tried to auction 3 different waterfront homes on the same day. None sold. Contrast that with 2007’s auction at Harbor Pointe condos, where they sold about 20 units in one day.
So why are waterfront home auctions not catching on at Lake Martin? Is it:

A. The buyers are reluctant to pay the typical 10% auction commission on top of their bid price?

B. It is too much of a hassle to view the homes at the times appointed by the auctioneers?

C. Sellers are placing too high of reserve prices?

D. Local Realtors are digging defensive trenches around Lake Martin?

E. Buyers are unrepresented (by agents) and therefore uninformed of value?

F. Or a combination?

What do you think, dear reader? If anyone out there has some input, or would at least like to vote on my suggestions, please leave a comment below where it says “Leave A Reply.” If you can’t see that, hit the Continue button and then you should be able to see it.

I am really curious as to what others might think. As a “professional” (I know, eyes rolling) I might be missing something here, so let me hear some other opinions.

Related Posts:

Register Now For Auction At Willow Point
Results of Harbor Pointe Condo Auction

Is driving all about the steering? No.

Then why should Lake Martin real estate agents think that a transaction is all about him or her? It always puzzles me when real estate agents let their egos become part of the buying and selling process.

It happens all of the time at Lake Martin, as I am sure it happens everywhere. Now, I am not talking about good ole competitive spirit or clean hustle. I am talking about the instances where the agents seem to think that if wasn’t for them, the whole transaction wouldn’t happen at all.

Here are 4 ways Lake Martin realtors are like power steering:

1. Not essential - people have been selling each other land since the beginning of the deed. I am sure that the first horseless carriage was hard to steer, but possible.

2. But helpful- there’s no denying that it’s physically easier to drive with power steering, and a good real estate agent, focused on only your needs, should make buying or selling your Lake Martin home easier by doing things like previewing homes, meeting the inspector, finding the right subcontractor, or researching in the courthouse - whatever it takes to make it easier on you.

3. Safer - It’s safer going around a curve when you don’t have to muscle the wheel by yourself, and a good realtor will point out the possible pitfalls in dealing with Lake Martin real estate. There are plenty of oddities about Lake Martin real estate - valuing your lot, waterfront easements, leased lots vs. deeded lots, just to name a few. Are you prepared to know which questions to ask?

4. More efficient- power steering smooths out all of the minute under and over steering while you drive. The result is a smoother, straighter ride. In the same way, a good real estate agent will help Lake Martin buyers skip the properties they wouldn’t like anyway and concentrate their time on the few real possibilities. Similarly, Lake Martin sellers can avoid all of the common mistakes that sellers make when marketing their lake property.

I am far from perfect; in fact I’m just an old chunk of coal. Sure, I can’t help but get emotionally and personally involved in a lot of cases. But I constantly remind myself that it’s not about me! It’s about them! It’s my job to help make my clients’ experiences fun, safe, and more efficient.

If I can’t prove to a Lake Martin buyer or seller that I can’t save them time and money, then I can’t look them in the eye and expect them to hire me!!

Related articles:

Lake Martin Sellers - Don’t Pick This Realtor
5 Mistakes Lake Martin Buyers Make

Recently around Lake Martin (online and offline) I have heard a lot of talk about eating at the lake. Some were bemoaning a lack of restaurants, others were extolling the virtues of cooking at home.

Still others admitted wanting someone else to do the cooking, but when they get down to their Lake Martin home on Friday night, they’re too tired to go out.

One solution is eating some of the great cooking from a local - The Dirt Road Gourmet. They pre-make casseroles and such, freeze them, and sell them through local retailers. Click here for their website and product list. Also you can click here for their list of retailers.

I pick ours up from Nail’s because it’s close to my real estate office and family’s cabin. They are really good, and really easy. Before you leave for the weekend, buy one, keep it in the freezer. The next Friday, when you get back down to the lake home, pop it in the oven while you’re unloading, it’ll be ready to eat when you are.

I highly recommend the Dirt Road Gourmet as a balance between fixing it yourself and going out. Plus, you can feel good about supporting a local business.

Lake Magazine - Lake Martin Edition - has a section called “My Lake Martin” where (apparently) they allow just about anybody to submit an article about the lake. They were kind enough to print one I submitted.

I was inspired to write an ode about a window unit air conditioner that we used to have in our cabin. Judging by its girth and sound, it had to have been made in the 1940s. Its brand name was “Kelvinator.” That’s what we called it, as in “it’s hot in here, turn on the Kelvinator.” When things are around that long, they deserve individual respect.

It’s kind of like how we refer to one of the couches as “The Herculon” as in q: “where is mainsail?” a: “stuffed behind The Herculon” or q: “why are you sweating so bad?” a:”it’s The Herculon - laying on it makes me sweat.”

Anyway,I digress.

Lake Martin cabins and window units are inseparable in my mind.

Here is the ode in full, with the pic they used:

and here’s the text of the ode:

An Ode In Praise of the Window Unit

My Lake Martin is a realm ruled by the window unit air conditioner.

Like polyester, it is a reminder of that which once was a point of pride, and is now no longer en vogue.

Oh, woe, and lastima to those who have nay slept below your frigid roar, o humble window unit!! While now your presence draws scorn from some and mockery from the rest, I weep in melancholy for the children of centralized systems who will never know your utility and hypnotic effects.

When the lake melted the zinc oxide from our noses and allowed sunrays to redden our skin, it was you, dear window unit that blew icicles to ease our suffering. You erased our memory such that we were burned the next day and the next.

When our parents were tired of hearing our noise, they declared it “nap time” - and shoved all us kids into one room. You alone watched over us with your rhythmic rumbling machinations. If we didn’t fall asleep, like a favorite uncle you made more noise than we so that the parents never noticed.

We feared you, mighty window unit - where once you were asbestosly insulated, through service your wiring became loose, exposed, menacingly copper, always one mere spark from setting the cabin in irreversible deathly flames, yet we needed you to survive a scorching August.

Lest you take an undignified backwards fall out of your perch and into the yard, we propped you up with an old board wedged into the ground, yet you never complained. Simpering Whines were foreign to you whose hazardous lead innards percolated and spewed pre-war freon. To you, brave window unit, fretting over the ozone layer was for sissies, you had kids to keep cool.

Just as God and Alabama Power mysteriously raised the lake as azaleas are reborn, so too, you were a mystery, our beloved window unit. Each spring when we first plugged you into that Tesla coil of a socket , we wondered if you could breathe once again. Not as lovely as the dogwood, yet as reliable, you awakened decade after decade despite our lack of routine maintenance. You always shook off the leaves and dead lizards to toe the line one more time.

Window unit - Thy name was Kelvinator.

Forgive us for tossing thy corpse into the woods sans pomp or due praise.

You deserved better.

A waterfront home and lot will be auctioned off at Willow Point on July 20, 2008.

No, it is not an auction by Russell Lands. Even though Willow Point is a Russell Lands development, this auction is by a private landowner.

The home’s address is 284 Lakeview Drive, 35010. The lot is right next door. They both will be auctioned on July 20, 2008 by Albert Burney Auctioneers.

Here are some photos of the home and lot from the water:

And the home close up:

The auction ad lists these amenities:

œLuxury doesnt even begin to describe this incredible home in one of the finest areas of Alabamas favorite fresh-water playground! Locals on the lake refer to this home as the œWaterfall House because of its prime location and picturesque setting, which includes a 175 foot waterfall leading from the 1200 gallon Koi pond to the lake.

But thats just the beginning.

Your private elevator will carry you between three levels of the home and the wine cellar below. This amazing home even has a sports room with a pool table and a saloon-type bar.

The floor-to-ceiling windows throughout the home filter 95 percent of the suns low rays with Argon filling, providing unsurpassed energy efficiency.

When youre ready to head onto the water, you can simply go down to your private docks, which are equipped with lifts for a ski boat, three jet skis and a pontoon boat. Youll even have your own diving board.

* six bedrooms
* opulent master suite with fireplace
* elevator
* 4,000 bottle wine cellar
* four car garage

According to an article about the auction in Lake Magazine, the sellers, Mr. and Mrs. Kenneth Ingram, Jr., are selling in order to scale down to a smaller home.

If you think you might be interested in the home or the lot, and would like to register for the auction, please contact me. By allowing me to register you, I can provide you with comparable sales data and analysis on the home’s and lot’s value. The winning bidder will pay 10% to the auctioneers, regardless of whether I register you or not, so you might as well let me help you research. The auctioneers will pay me a referral fee for my efforts.

If you would like to read more about Lake Martin’s Willow Point, please read this post and also this one that shows pics of Willow Point’s pool and golf course.

I am working with a couple of buyers in The Ridge, a Russell Lands development in Lake Martin. I always get asked lots of questions about the amenities at the Ridge, so I thought I would shoot a video to show some of them.

Basically, if you own a home, a lot, or a town-home in the Ridge, you have the right to access all of the amenities, like the pool, the Ridge Club, the tennis courts, walking trails, boat launch, and Beach Club. The Ridge Marina is public, but of course easily accessed by Ridge owners.

Here is the video:

I should have shot more footage of all the walking trails and sidewalks of the Ridge, a lot of people like to use them. Maybe it’s material for a future video.

Properties for sale in The Ledges at The Ridge:

276 Ledges Trail (click here for property description)

here is a video tour of the townhome:

Related Posts:Lake Martin Real Estate Spotlight: The Ridge
Lake Martin Real Estate Spotlight: The Ridge Update

Lots of people enjoy Lake Martin by taking their RV to or camping in Wind Creek State Park. It has lots of sites on the waterfront, and is really a pretty park. As you can imagine, it can get crowded on the summer weekends with camping spots in high demand.

Recently this was a topic of discussion on the Lakes Online forum that is dedicated to Lake Martin. You can read the posts’ thread here. The general consensus was one of wishing for more options to RV or camp on the water, and why there aren’t more places like that around Lake Martin.

I chimed in on the thread, saying:

“this is a generalization, but usually land on the water is so expensive it is hard to make the numbers work for an RV park. Plus it is hard to find land on the water that doesn’t have a deed or neighborhood restriction against commercial use like an RV park.That said, there is plenty of land that is close to the lake that you could do it on. Maybe you could have the park, then boaters could go put in at a public ramp.

There are also some parcels here and there that are on or near the water that you might could do homes to rent and also park and RV. Just depends what you want to do. Email me if you would like specifics.”

Then someone emailed me anonymously (through the Lakes Online) and asked me the following questions:

“So do you have property on the water for sale? Everyone I talk to says sewer is the issue. You can pump sewer up hill to make it work. Thanks. ”

My response was:

“someone emailed me thru lakes online as an anonymous visitor, and asked the below question, I really don’t know how to email them back, so I will answer them here. Their questions:‘So do you have property on the water for sale? Everyone I talk to says sewer is the issue. You can pump sewer up hill to make it work. Thanks. ‘

Sewer / septic might be the issue in that you might have a hard time getting a system approved, but that is only on a lot by lot basis. It’s hard to make a call on the septic because it’s only approved by the county when you turn in a plan for that specific lot.That to me is the lowest of three hurdles for a project like this. the highest would be cost. If you were to buy a lot for $300,000, and it was only an acre, how many RV spots could you fit in there, 7, 8? If you can charge $50 a night, even if you rented it every possible night, would that be enough to float the debt on the $300,000, plus operating costs? Maybe you supplement by other income, I don’t know.

Second hurdle is zoning. The lot / land you buy would have to be approved for this use. Not saying it can’t happen, but it is a consideration.

Third hurdle is septic. Do you have enough land for a proper area for field lines, based on the amount of waste that will be discharging? Just a matter of math and money.

Again, I am not saying it can’t happen. There are a few spots around the lake that maybe, possibly, could work. You don’t know until you get into the details.

As to me sending you info on possibilities, please email me from your real account so that I can reply, or just call me.

I thought it might help to post the same to Lake Martin Voice, maybe other readers have the same question.

One final thought regarding Wind Creek: I have never tried this, so I disclaim all potential legal and ethical liability, but it seems that, in general, in theory, hypothetically, sometimes when you have a scarce product (like RV lots) that are monitored by salaried personnel (like Wind Creek employees) it seems that it helps to TIP the folks? Ha! Only kidding, of course.

Related Post:

5 Questions and Answers: Alabama Power Leased Lots on Lake Martin