Lake Martin Voice Realty
Archive for July, 2007
Lake Martin Drought of 1941 Was Worse than 2007
Lake Martin has been a victim of the 2007 drought that has affected Alabama and much of the southeast. The lake level is down to 480 already, which is the normal winter level.
Apparently in 1941 it was worse. 50 feet down is about as bad as it gets. I think back then they used to bring the level down in the winter by 30 feet anyway, so maybe the 1941 drought’s true effect was 20 or so feet. Since this picture was taken in November, I am sure there is some effect of the winter level.
Still, 50 feet down is pretty bad. I was shocked to see this in an email that was circulating around. Maybe someone will debunk this as an urban legend, but at the very least we can be glad that we don’t have to make up 50 feet this spring.
Thanks to Eric of Lakedog Appraisals for sending me the photo!
Proof Of End Of Sellers’ Market On Lake Martin
What is the real estate market like on Lake Martin right now? I own waterfront property, should I sell? I want to buy Lake Martin waterfront property, but is it still a crazy market?
These are questions I hear constantly. Both potential buyers and sellers of Lake Martin real estate want to know if changing conditions will benefit them. To be sure, the water is way down, and so are the numbers of real estate transactions. I will cover cause and effect in a later post. But for now, let’s just focus on one question:
Is Lake Martin still a sellers’ market?
If you talk to 10 people, you get 10 different answers, ranging from Pollyanna agents who still think it’s a sellers’ market to Chicken Little bubble barkers who act like property owners are literally throwing money into Lake Martin each time the water drops an inch. What’s the truth? When I approach the question, I treat it like every other issue about Lake Martin real estate:
1. Break it down by market segments. What are you talking about, here? Waterfront or non-waterfront? Condos? Lots? Leased lot homes or deeded homes? Homes above a million? What? (Below I will only talk about waterfront property.)
2. Look at the numbers. As I have said before, you have to be careful when interpreting statistics in our market. It is relatively small in transaction number (when comparing to large cities like Atlanta). But, to make a market opinion, you must look at market statistics, so I try to consider a year of data at a time. The goal is to take emotion – and agenda – out of the equation. Just the facts, ma’am.
3. Apply Common Sense. Just as you don’t want to be ruled by emotion or anecdotal 
evidence, you also don’t want to let the misapplication of statistics throw you off course. There is no magic statistic or rule of thumb to proclaim a market a buyers’ or sellers’ market. You have to use your common sense to test the statistics versus your everyday observations.
MY TAKE ON THE DIFFERENT TYPES OF LAKE MARTIN WATERFRONT PROPERTY:
1. LOTS – Right now on Lake Martin there are 113 waterfront lots for sale. 13 have sold in the past 12 months. That means we have about 113 months of inventory, or it would take almost 10 years to sell at this pace. On its face, that figure suggests an extreme buyer’s market. I do think this is a buyer’s market, but, like condos, I think that if sellers were more realistic on price, most of these would get snapped up pretty quickly. Everyone wants a lot. But, I think many sellers have incorrectly priced assuming the market rose by 35% over 2006. My call – Buyers’ Market.
2. CONDOS - There are 112 waterfront condos for sale and only 34 have sold in the past twelve months. That’s 38 months’ worth of inventory – i.e. at this current buying rate, it would take over three years to sell all of the condos currently for sale. That doesn’t count any that are under construction or might come on the market in the future. The recent condo auction at Harbor Pointe taught us – there are buyers out there, but they are at lower prices. This segment was by far the easiest to judge. My call – Buyers’ Market.
3. DEEDED LOT HOMES UNDER $1 Million - In rural Alabama, it’s hard to call a $400,000 home a “starter home” with a straight face. But that is about the price point of the lower end of the deeded lot single family home on Lake Martin right now. In the deeded lot homes priced under $1 million, in the last 12 months, 120 have sold, or 10 a month. 249 are for sale now. So we have about 25 months’ inventory. But looking at this inventory, if a few sellers got realistic and dropped their prices, I think they would sell pretty well. If homes in this segment are priced right, and are “good ones,” they sell in 45 days. But because there are many that are overpriced and have been sitting on the market, I really can’t say that it is still a sellers’ market. My call – Balanced.
4. DEEDED LOT HOMES OVER $1 Million - This segment is harder to compare with prior years, because the rate of increase on investment has meant that many homes are now worth $1 million whereas in prior years they would be at $750k. To be fair, you really would need to compare homes over $1 mill today with homes over $750k in 2005. Right now, there are 66 for sale. 17 have closed in the past year, or about 1.5 a month. So we have about 44 months, or almost 4 years’ worth of inventory. Most of these are new construction spec houses being sold by builders. They are getting aggressive – dropping prices and adding incentives. My call – Buyers’ Market
5. LEASED LOT HOMES – 15 have sold in the past year, and right now there are 15 for sale. So there are 12 months’ inventory. I had one listed, we priced it aggressively, and it sold in 81 days, which is about the average time in a balanced market. Looking at the inventory, I think some are better values than others, so if they adjusted prices they might sell more rapidly. My call – Balanced.
Are you considering buying Lake Martin waterfront property right now? Why don’t you let me help you find what you need? I can help you sort through the above 5 segments FOR FREE. Sellers pay the real estate commission. I can help you with any Lake Martin waterfront property, regardless of who has it listed. An average real estate agent won’t help you much. A good realtor will save you money and time.
Gov Riley Declares War On Lake Martin Water Level
Governor Bob Riley has declared war with the Army Corps of Engineers over the Lake Martin Water level.
Apparently he is sick of seeing this drought affect Lake Martin’s water level drastically, while reservoirs that are upstream (read: in Georgia) haven’t felt the hurt like we have. The Army Corps of Engineers regulate the flow on most if not all of these dams. Riley contends that they need to release more water in Georgia to help Alabama.
Robert Price Prince, the general manager for Central Elmore (County) Water Authority joins Riley in his concerns. The company’s water intake valve is at 474 feet on the Martin dam. Any lake level below that spells trouble.
In response, the Corps has responded to say that they will increase water flow into the Tallapoosa / Coosa system and also reduce the required flow going out. Hopefully this will abate the drop in the Lake Martin water level.
I guess that just goes to show you what a country boy can accomplish when he gets mad. 
Guv can put the top back on that can of Clay County Whup A**. I applaud the Governor’s passion and action.
I looked and looked for an online video of the Guv’s call to arms. I saw it on the news the other night, and it was a classic Alabama rant. There he was, up in the grill of the cameraman, tie loosened and sleeves rolled up, spitting and fuming. Well, it worked! Good for him.
Every time I see the Guv at a public event, he has the tie loose and the sleeves rolled up. It makes me wonder, if he ever did get in an actual fight, would he tighten up the tie and roll his sleeves down? Just wondering. Kudos to Riley.
Related Posts:
Help Keep Lake Martin Water Level Up
Fourth Of July Fireworks Are On, But Don’t Try At Home
How To Get One-Up On Lake Martin Wannabes
Have you had Lake Martin waterfront property all of your life, but you’re tired of the Johnny-come-latelys who can’t find Chimney Rock without a GPS? Or maybe you’re new to Lake Martin, and have heard enough hot air from old timers that think they should have shut the gates of the lake back in 1958?
Here’s a way to way to shut both of them up.
Ask:
When’s the last time you volunteered your time for the Lake?
After they quit mumbling a response, get over on them by bragging about how you participated in the 2007 Lake Martin Clean Up.
Each year, Renew Our Rivers (a joint effort between Alabama Power and the Middle Tallapoosa Clean Water Partnership) hosts a clean up day. It’s a chance for regular folks to pitch in and help beautify Lake Martin.
When?
This year it is Saturday July 14 from 8 AM to Noon. (No, you don’t have to work the whole time. 30 minutes will do.)
Where?
Four locations: 1. Kowaliga Bridge Boat Ramp, 2. DARE Park, 3. Union Boat Ramp, and 4.Alex City Boat Ramp
Any swag?
You get a t shirt, gloves, and a bag.
Contact?
Tammy Jones (256) 234-5271 ext. 3
Results Of Waterfront Condo Auction – Harbor Pointe – Lake Martin
Lake Martin waterfront condo buyers flock to the condo auction at Harbor Pointe in Stillwaters.
Roebuck Auctions held an auction at Harbor Pointe Marina in Stillwaters last Saturday, July 7, 2007. The bidding started at 11:07 AM, selling 20 units in the Harbor Pointe Condo development. Chris Boden, representative of Roebuck Auctions, stated he thought the auction went very well. He estimated that there were about 500 people in attendance and about half were registered bidders. Boden confirmed that all 20 condos were sold and are under contract to close in thirty days.
Boden went on to say that the boat slips were not auctioned that morning. They were pulled from the auction due to a “legal snafu” that the sellers were currently working out. He said that 24 slips are still available, and they would be offered for sale first to the auction high bidders, then to existing Harbor Pointe owners. Boden also said that some boats were sold, but since he worked on the real estate side, he didn’t really know the details on how that all turned out.
Lake Martin Voice roving correspondent Kirk Wascom had this report:
“I went to the Harbor Pointe Auction at Harbor Pointe Marina this past Saturday. There was obviously a lot of interest given there were 300 other folks in attendance as well.
The first condo sold for $385,000 and the last one went for $235,000, not including the 10% fee to be added. They auctioned the condos on a buyer’s choice. The first condo sold allowed the buyer to choose his/her choice of the 20 available waterfront condos. The first one sold and chosen by the buyer would have been the one I would have chosen.
Although I attended the auction more out of curiosity and genuine interest, I did take my checkbook and a letter of guarantee from bank. During my registration they asked me for my letter of bank guarantee. However, a buddy of mine who also attended the auction was not asked to present one. We registered at different times. I guess it’s like buying alcohol; sometimes you’re carded and other times you’re not.
In my opinion, I think those who were the high bidders and who got their choice of a condo got a good deal at a fair value. It was all a win-win position for both sides. Due to the number of buyers at the auction there was no way anybody was going to get a condo for some low bid price of $75,000 – $100,000.”
Thanks Kirk, for that report, and for the inspiration for this series of posts.
Does anyone else out there have a subject they would like to see covered by the Lake Martin Voice? Speak up! And watch out, you may be drafted into action like Kirk…..
Related Posts:
More Info – Harbor Pointe Condo Auction – Lake Martin
Lake Martin Voice Auction Post Linked By The Wall Street Journal
6 Questions To Ask At A Lake Martin Auction
You Are A Lake Martin HOBO
Whether you know it or not, you are a Lake Martin HOBO!
Some Lake Martin area folks have organized the Lake Martin Home Owners and Boat Owners Association – and called it the Lake Martin HOBOs. You don’t really have to be a waterfront home owner or a license toting boat owner to be a member. So even if you are merely a fan of Lake Martin, you can join today!
Coley Real Estate and the Lake Martin Voice are proud sponsors of the Lake Martin HOBOs.
Why a Lake Martin HOBO?
The Mission Statement reads:
“The organization’s mission is to work together with home owners, boat owners, local businesses, local, state and federal agencies and others to foster long term partnerships to preserve, protect and enhance the overall quality of life of all living things in and around Lake Martin – The Crown Jewel of the South, including, but not limited to, water levels and quality, shoreline preservation, fishing, wildlife, recreational activities and the safety of all boaters.”
Worthy goals all. I think Lake Martin needs an association like this that will responsive to the people in the area, and that will balance quality of life issues with the realities of Lake Martin’s future development.
Please support the Lake Martin HOBOs!
More Info – Harbor Pointe Condo Auction – Lake Martin
Due to many of you asking, here is more information on the auction for the 20 waterfront condos at Harbor Pointe, Stillwaters Development, Lake Martin, Alabama.
The sellers of the Harbor Pointe condos will do the absolute auctions first. The high bidder on the first one will get a free boat slip. The high bidder will then select which and how many condos that he/she wants at that price. So if the high bidder selects only one, then they do another absolute auction for the remaining 4, and so on, until there are no more. Then the sellers will get together to decide if they want to do any more as absolute. But you know that at least there will be 5.
They not decided when exactly that they will auction the boatslips.
Please note the auction will start at 11:07 AM. You pay a 10% buyer’s fee. You will be required to put down 10% of the price that day as a deposit. You will not be able to have any sort of contingencies whatsoever on the purchase, so if you will want a home inspection, for example, you have to pay for it yourself and have them inspect during the preview / inspection days.
2 of the units are building A. 3 are in building D. The rest – 15 – are in building E. Only 3 of the units are 2 bedroom. All of the rest are 3 bedroom. 1 of the D units is 2 bedroom. The other 2 are in the E building.
Here is the info that I found at the official site of Roebuck Auctions:
Location:
Harbor Pointe Marina
397 Marina Point Road
Dadeville, AL 36853
Date:
Saturday, July 7th, 2007 at 11:07AM CST
Preview/Inspection Dates:
Saturday, June 30th, 2007
10:00 – 4:00 PM
Sunday, July 1st, 2007
12:00 – 4:00 PM
PROPERTY FEATURES:
20 Luxurious condominiums on Alabama’s popular Lake Martin
At least 5 condos will be sold Absolute
The first unit that sells also comes with a free boat slip!
Beautiful 2 and 3 bedroom units
Very high-end interior finishes including:
stainless steel appliances
tile
granite/marble counter tops
More!
Harbor Pointe consists of (5) four-story buildings with common elements:
pool
pool facilities
pavilion
sandy beach
New and existing condo owners will also have the opportunity to buy a boat slip
25 slips will be offered at auction
all boat slips are adjacent to the condos
Unit D203 is set-up as a model unit.
Check-in here at the open houses
Auction will be held at the Harbor Pointe Marina showroom adjacent to the condos
SELLING FROM:
Harbor Pointe Marina Showroom
Real Estate Terms:
The high bidders will be required to place a bid deposit equal of 10% of the amount bid. Deposits will be accepted in the form of cash, checks with bank letter of guarantee, or certified funds.
Buyer’s Premium:
A buyer’s premium of ten percent (10%) will be added to the high bids to determine the total prices to be paid.
Closing:
The entire purchase price must be paid by Cashier’s or Certified Check, or wired funds at closing. No purchase shall be contingent on financing or any other contingencies.The closing shall take place not later than thirty (30) days after the auction.
Related Posts:
Results From Harbor Pointe Condo Auction
Lake Martin Voice Auction Post Linked By WSJ
6 Questions To Ask At A Lake Martin Auction
Lake Martin Voice Post On Auction Linked By Wall St Journal
Lake Martin Voice – your blog for Lake Martin real estate and area information – was honored recently by the Wall Street Journal online.
On June 30, 2007, the print edition of the WSJ published an article on page B1 entitled “Home Going Once, Going…” about real estate auctions. On the online version, at the end of the article, my post “6 Questions To Ask At An Auction On Lake Martin” was linked under the heading “Blog Posts On This Topic.” It was one of only two such blog posts mentioned.
You can try and click here for the link to the article on WSJ. It should be active for a couple of days so that non-subscribers can read it. I printed a PDF copy but it doesn’t show the link, so I print screened it (below).
