Lake Martin Voice Realty
Archive for the 'Investor Tips' Category
Lake Martin Real Estate Sales 2011 – Year In Review
Lake Martin waterfront home sales finished 2011 in style, selling 207 waterfront residences on the entire lake.
This total gives Lake Martin the highest home sales since 235 were sold in 2006. That’s not bad once you think about it. We posted the highest sales in five years. The statistics I quote are taken from Lake Martin Area Association of Realtors’ MLS*, and represent all real estate agents, all brokerages, over the entire lake.
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The significance of this strong year of home sales cannot be understated for Lake Martin. I have said it many times here on this blog, but it bears repeating: the Lake Martin waterfront real estate market is at least three and a half years past its bottom. Since July of 2008, everything has been uphill with regards to numbers of homes sold.
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Lake Martin Waterfront Home Sales By Month
If you would like the source data for the chart above, here below are all waterfront home, condo, and town home sales on Lake Martin, broken down by month:
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Below please find a line chart showing the same data for Lake Martin homes sold, I just removed 2005 through 2007 since I was getting too many lines on my chart and it was becoming hard for me to read. I feel that 2008 is an appropriate year with which to start this chart since it was the bottom.
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I think it is also notable that 2011 is the year that the market once again broke the 200 homes sold barrier. This is the first time we have broken 200 since 2006. Back then, Lake Martin was still firmly in the sales boom, although numbers of waterfront homes sold were dropping, prices were still rising. We didn’t quite realize that it was turning down. Those trying to sell their Lake Martin homes should have gotten out then if they wanted to perfectly time the market.
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This year, I think that Lake Martin is in just as pivotal a year. Sales increased by about 6%, but I think that prices still have not risen at all. I think that may change in 2012.
Lake Martin Waterfront Home Pricing Trends
I only look at prices of homes sold once a year on Lake Martin. This is because we have such a small number of homes sold, relative to large metro markets. It doesn’t make sense to look at it monthly because two or three abnormal homes can skew it too much. You sometimes see a 100% increase or decrease from month to month. Too volatile. Similarly, I do not track Lake Martin home prices by calendar quarter because we are a seasonal, second home or vacation home market. Check out the monthly sales chart above and you can see that the bulk of home sales happen in warm months.
I attempt to solve our small market problem by breaking the homes sold into categories, in increments of $100,000 to start with, and then observing what percentage of the total sales that each $100k band represents.
Without further ado:
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I think the above chart shows very clearly, and confirms my gut’s suspicion, that waterfront home, town home, and condo prices did not decrease on Lake Martin in 2011. They held steady with 2010 and 2009. While some sellers may interpret this as bad news (no sales increase) I think they should count their blessings.
At least there was no dip or decrease in prices. I would be shocked if there were. After all, Lake Martin is in a rising sales environment and has been for years.
So What?
So what does this chart mean? I think it means that once again, as in 2009 and 2010, the largest percentage of homes sold on Lake Martin were in the $200,000 – $299,999 range. Right at 25% of the waterfront home sold in 2009, 2010, and 2011 sold in that range.
If we had seen the entire bell curve shift forward towards the blue line of 2008, we could say (in my opinion) that we have evidence of price increases. But it didn’t.
I am tempted to say a price increase shift is starting in the way the $300k – $399k and $400k and $499k bands are bulging out a bit, straining in the chute, if you will. 2011 had a lot more sales in the 400s than did 2010, but the prior year beat 2011 in the 300s. I will call it a draw.
Why do I think there is a chance that we might see price increases in 2012? Because the home sales results keep chipping away at inventory. At the end of December, there were about 359 waterfront homes and condos for sale, after 207 sales in 12 months or a ratio of 1.73. Sure, December is the lowest listing period. But in December 2010 that number was 394 / 195 = 2.02.
Sellers - please hear me out. It is NOT time to raise prices like it was 2006. I am just saying that I can see the easing of downward pressure if sales continue.
Please stay tuned, I plan to write a lot more about 2011 Waterfront real estate sales on Lake Martin.
Related Posts:
Lake Martin Real Estate Sales 2010 – Lot Sales
Lake Martin Real Estate Sales 2010
Lake Martin Real Estate Sales 2009 – Year In Review
Lake Martin Real Estate Sales 2008 – Year In Review
Lake Martin Real Estate Sales 2007 – Year In Review
All Lake Martin Market Reports
(*)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 waterfront sales on Lake Martin, Alabama.
Bluto – The Lake Martin Bear Market is Over!
"Zero point zero..."
Bluto Blutarsky might not want to admit it, but the bear market in Lake Martin waterfront real estate is over! As I have said many times on my various posts about Lake Martin Market Reports, I think the tide turned in the middle of 2008.
People keep talking about it, though, and that is understandable. So I covered the topic in my latest article in Lake Magazine. Here’s the link:
Nothing’s Over Until We Decide It Is
I am very grateful to publisher Kenneth Boone, aka Mr. Perfect, for allowing me to write these columns this year for his excellent Lake Martin Magazine. I have really enjoyed the different medium of writing that his magazine offers, and also relished the crossover discussions I have had with those who read his magazine more than they read my blog.
So if you are a Lake Martin Voice blog reader who is unfamiliar with Lake Martin Magazine, please check it out online and in print. They have the best photography around, and (present company excluded) some of the the best writing as well.
Movie References
When I think of the phrase “it’s over” – I always think of Animal House. However, as I was working on this article, I initially wanted to reference a different movie that also uses “it’s over” but in a much more dramatic way:
There’s that scene where the hard core Green Beret Colonel Trautman comes to the hick town to reign in his master warrior John Rambo, played of course, by Sly.
It really is a much better scene to convey the shake-them-into-reality feel that I wanted.
He hollers at Rambo:
“It’s over Johnny!”
I even was going to let that be the headline. But I thought it might confuse the reader into thinking he was screaming at me. Plus, Vietnam is not really a good comparison to second home real estate on Lake Martin. I didn’t want to stir up images of that.
Stallone fan or not, you have to admit that was a great movie, and an even better scene.
Even more, it launched an entire sub industry of survival knives.
I bought one at the Santuck Flea Market when I was 11 or 12. I still have it. I didn’t use it to fight any commies or even cauterize my own wounds but we do use it to dig up weeds in our yard.
John Coley Teaching Real Estate Video Class At REtechSouth
REtechSouth, the best real estate conference in the southeast, has asked me to teach a class on how to do real estate video. It’s being held at the Gwinnett Center in Atlanta on March 31 & April 1, 2011.
I’m really honored to be among this list of speakers, which includes not only some of the brightest technology minds in the country, but also some of the most successful real estate agents who are using it.
If you are an agent, or even remotely connected to the real estate industry, I would highly recommend that you attend. It is the only paid conference I attend every year. The speakers range from the extremely practical to visionary. This gives you a great mix of things you can implement tomorrow and ideas of what will be happening a year from now. I keep my notes. I still have some from my very first year that I consult when I need help (which is often).
My class is “Jump Start Your Video Production: For the Camera Shy.” I plan to address agents who can only use their phone for video and also the agent with a more sophisticated equipment and editing setup. We go baby step by baby step and will talk about the ways to not only shoot the video, but how to upload it, what to shoot, and how to use it to help your buyer and seller clients. I think I have produced a little over 200 real estate videos for the Lake Martin area, and have been blessed to have over 54,000 views of those on YouTube alone.
I also want to thank my current readers and clients, because your requests have helped me figure out what people want in an agent. I consider this speaking engagement as a vote for the Lake Martin area! We may be small but we can still have a positive impact in the real estate industry!
Everything I teach will be based on my day to day life as a “real” real estate agent, and the tremendous amount of trial and error I have experienced up to this point. I am also looking forward to learning from the audience. One of the great things about REtechSouth is that it draws such a diverse and accomplished crowd, you learn as much from the audience’s input as you do from the speaker’s. Therefore I know there will be lots of folks in the crowd that will know way more about this than I do. I hope they pipe up and help me out!
This is the fourth year of REtechSouth. Last year the conference drew over 700 attendees from over 20 states. Speakers will be teaching 51 classes. I don’t mean to sound like I am sucking up, but even the sponsors are noteworthy. Usually at these type of events I (being cheap) talk to them just long enough to score a free pen and notepad or some breath mints. But these guys are actually helpful; I find myself peppering them with questions instead of the other way around.
Ignore the fact that little ole me is included and check out the rock star list of speakers:
the conference schedule:
and go here to register:
If you are planning to stay at the Gwinnett Center at the Holiday Inn, be sure to select the one on Sugarloaf Parkway. There are two in Duluth and the Sugarloaf Parkway one is within walking distance of the conference.
I hope to see you there!
Cherish The Cabin
According to this article in the Wall Street Journal, there is a “golden window” in the US Tax Code that allows taxpayers to gift more this year without being taxed. Quoting directly:
“For the next two years, the gift-tax exemption jumps to $5 million from $1 million for individuals and to $10 million from $2 million for couples—meaning people can give away that much without paying a penny in taxes.
What’s more, the tax rate on gifts above those amounts fell to 35% from a scheduled 55% ”
Normally I don’t consider tax code law to be interesting fare for a blog focused on Lake Martin real estate. Today I certainly don’t want to imply that anyone should make a decision to buy or sell a lake house based primarily on tax reasons. Secondarily, maybe.
What really interested me about this article was that it went on to say that many people are using this opportunity to reduce their estates, and perhaps successfully pass on assets to their heirs so they won’t get hit so hard with estate taxes or higher gift tax rates in the future. Furthermore, authors go on to say that:
“Some also may want to put “sacred family assets”—a beloved vacation home or pieces of furniture, art or jewelry—into trusts to preserve them for future generations.”
Did you just see that? Sacred family assets. The first thing they mention is a vacation home.
But isn’t that part of the appeal to owning one? Maybe the end pursuit isn’t necessarily sacred family assets, but sacred family memories, traditions, and time spent together. Lake Martin is a great place for all of those.
Coincidentally, I was talking Saturday with a guy whom I helped find his own sacred family asset. He admitted although he bought in “the peak” of the market in 2007, he wouldn’t trade one weekend, not even one second, of the time he and his family have spent there. Even now, in the dead of winter, his family couldn’t wait to get back to their Lake Martin home. There is too much fun they could be having.
Can we help you find your sacred family asset?
Or maybe it’s time to let go of it, and you need someone who realizes what this means to your family. We understand the need to make sure that the next family enjoys it as much as you have.
We can help. Call or contact us here.
600 Lake Martin Foreclosures CAN be Wrong
Lake Martin is like any other real estate market: we are seeing an uptick in foreclosures and short sales. Since Lake Martin is full of vacation and second home property, most of these are spec homes or flips gone bad.
I am helping many buyers right now who are focused on foreclosures and short sales. I even have a few listed for sale (that are waterfront). Naturally, I’m getting a lot of calls and questions about the foreclosure/short sale process and how Lake Martin is reacting.
One of the most interesting comments came came from a man who was talking to another guy about buying a boat. (Please note – this boat was a FSBO. This was NOT a dealer.) Anyway, the boat seller informed the other guy that
“There are about to be 600 foreclosures hitting the Lake Martin market.”
Is Mr. Boat Seller correct? I give him about the same odds as my poodle running in the Kentucky Derby. 
Can I prove it? NO. But the reasons I can’t are the same reasons why I’m pretty sure Mr. Boat Seller is wrong.
1) Lake Martin covers three counties: Tallapoosa, Coosa, and Elmore. When a lender forecloses a home on Lake Martin, or anywhere in Alabama for that matter, they must record the proceedings at the court house. That means a Lake Martin foreclosure has to be found at one of three court houses. Since no one (to my knowledge) puts any of this online, it means you must physically go to each courthouse, and physically search deed by deed. Good Luck.
2) Lake Martin does not have one paper of record. Any foreclosures must be advertised in “the paper” right? The Alex City Outlook is by far the biggest paper closest to the lake. But there’s also its sister paper, The Dadeville Record, also in Tallapoosa County. In Elmore County you have The Wetumpka Herald and The Eclectic Observer. Coosa County? Good Luck. Therefore, it’s impossible to gauge Lake Martin foreclosures accurately by looking at physical papers or online.
3) These catch-all foreclosure websites are incomplete and just plain wrong. Maybe sites like Foreclosures.com and FreeForeclosureReport.com work for metro areas with one dominant paper and fully web enabled county courthouse. Like I said above, Lake Martin is made up of 3 rural counties. Those aggregate sites don’t know Walnut Hill from Red Hill. Most of the information I’ve seen out there is a year old, at least.
So where can you find the most current info on Lake Martin foreclosures?
Call or email an agent like me.
Sorry, but that’s still the best way.
Lake Martin Real Estate Sales – 2008 Year In Review
The waterfront property sales in the Lake Martin MLS* ended the year by tying 2007′s December sales of 4.
When we looked at November 2008 sales for Lake Martin, we saw that 2008 monthly sales were starting to beat 2007. How did we finish the year?
On a whole, 2008 proved unable to beat the infamous drought year of 2007. In total, 137 waterfront homes were sold through the MLS on 2008, which was about 12% less than 2007′s number of 156.
Check out the graph of cumulative sales:
To put this decrease into perspective, see the below chart. It shows by month, sales of waterfront Lake Martin residences in the MLS. You can see the decrease of number of sales from 2007 to 2008 of 12%. Also consider that this is the third year in a row of consecutive decreases.
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What did prices do on Lake Martin in 2008?
Another natural question is to look for evidence of falling prices in such a strong buyer’s market. If you compare 2007 to 2008, it is interesting to note that at the low end and the high end, 2008 actually had more sales. As always, there are some sales that report “0″ as the sales price. If you take these sales out, it looks like:
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Looking at the sales, I think this was due to many sales of leased lot mobile homes on the low end, and spec homes on the high end. Of the 24 homes sold at or above $1 million, about 14 were in the Ridge.
But this still does not give us any real feeling of a basic question that I get asked all of the time: Are Lake Martin sellers finally dropping prices?
I have said this many times before, but I will repeat – the Lake Martin area real estate market, especially waterfront property – is a relatively small pool of sales statistics from which to draw. Sure, the lake itself is huge, but in terms of number of sales, we are small even by Alabama standards. When you try to draw too many broad conclusions from a small set of data, you get weird results. Nevertheless, I thought I could see some interesting trends if I looked at statistics like Total Sales Volume, Days On Market, and Average Price. Check out these factoids covering 2005 – 2008:
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Most of these factoids seem pretty logical and follow the pattern that we by hindsight know – that 2005 was the peak of an extreme seller’s market, and 2006 saw a transition to a buyer’s – and by 2008 we are at the other end of the spectrum, and extreme buyer’s market. The Sold Price as a % of List Price decreases. OK, check. I get that. Average Days on Market for sold listings dramatically increase, OK. Active Listings balloon, almost doubling. Right.
But wait – Lake Martin Average Price INCREASES? Sure it came down a little in 08 but did it almost DOUBLE from 05 to 07? That is counter intuitive. My gut tells me no. My gut tells me that the average is badly skewed by a few high sales prices, and since 2008 sold less than 50% of homes than 2005, it affects the average a lot more.
So is my gut correct? Only one way to find out.
Searching For A Bell Curve
What will Lake Martin sales look like if I break them up into price categories and then divide by total sales? For example, in 2005, there were 77 homes sold in the $200k – $299k price range, and 284 total that year. 77 divided by 284 is about 27%. That’s what gives you the peak in 2005′s line below. It removes influence of the amount of each sale, and merely looks at each price category as it relates to the whole. Then we can see how much each particular year is influenced by low or high end sales. Here it is:
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If you care to view the numbers behind the chart, click here.
I believe that this graph clearly shows that the average reported waterfront sales prices of residences on Lake Martin in 2008 was definitely skewed by an unusually large percentage of high end sales. The aqua line represents 2008. Fully 18% of 2008 sales were above $1 million – while only 2% were in 2005. 18 divided by 2 is 9 – 9 times more greatly influenced by the high end. That’s NINE TIMES, Ferris. Nine times.
Well, this is because things got more expensive, you might say. No, I disagree. If all prices increased, we would see more of a shift of the entire curve - as we saw from 2005 to 2006. You can see that the peaks of 2006 and 2007 are definitely ahead of 2005 – to me a clear sign of overall price increases. But check out what happens to the peak in 2008 – it drops back!
On all but the top 20% of sales on Lake Martin, 2008 was a year of decrease prices! How much I am not willing to say. Remember, we’re dealing with small samples. For example, to look at this graph and say, since the peak in 2006 and 2007 was in the 400s, and it dropped back to the 300s in 2008 – it would be incorrect to think that the whole market decreased 25%. But I do think it is OK to say we experienced a downward trend.
SO WHAT MATH NERD??!? WHO CARES? HOW DOES THIS HELP ME?!?
I can think of several applications for 2009:
BUYERS:
1. Anyone that has been waiting until prices come down can quit waiting. It is happening.
2. Observe that for sellers, their sweet spot came in 2006, when prices were still rising even though more and more homes were flooding onto the market. It took them a while to catch on that the end was coming. HOW LONG WILL YOU WAIT TO BUY?
3. This cycle WILL swing back. Will you be burned like some sellers were in 2006, gambling that prices would rise again in 2007, only to be hit with the drought then the bank meltdown? When else in history have buyers had this perfect storm on their side?
SELLERS:
1. This should show you that now, more than in the last 4 years, buyers are extremely price sensitive. They are reacting to aggressively priced homes, not homes with crazy list prices.
2. There are TONS of other homes on Lake Martin for sale. The buyer can pick among several good candidates. You are not as special as you were in 2005.
3. Know your competition – look at your home and decide, what price point would I be in? What would be my competition? Regardless of the price, be competitive within that category. Also, choose a price that justifies not stepping up or stepping down.
In Summary
Sorry for the long post, but I just couldn’t break this info up and it make any sort of sense.
Please note that I am not trying to break the news that it’s a buyer’s market and prices are dropping. That’s obvious. Similarly I realize I am not the first to discover the bell curve. But – I do think it is tremendously exciting to finally have a mechanism to observe pricing trends that isn’t too mangled by our small sample size.
Call me a dork, but I love it. I love Lake Martin real estate, so to me this is big. Indulge me, OK?
(*)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 Market Statistics Category
From The Lake Martin Voice Mailbox: A Reader Asks Some Tough Questions
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.
Guess What? Nothing Happened At Lake Martin Auctions
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.
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
John Coley Featured In Bham News Article On Vacation Homes
I guess part of being a realtor, even in the web 2.0 world, is cheesy self promotion, hence the obnoxious headline.
Alison Ketcham of the Birmingham News interviewed me in an article she did for the Sunday, July 22, 2008 paper. It was in the Real Estate section, page 22J.
She wrote the article about buying second homes, and what the current real estate market is doing to vacation home sales. She interviewed a developer on Lake Mitchell, a realtor that sells homes in the foothills of the Appalachians, and talked to me about Lake Martin. It should be on al.com pretty soon, when it is, I will link it in here.
I was really honored to be interviewed. Plus, the picture she used (below) was one of mine, of a home I have for sale, 1135 Lakeview Drive. It is a 3 bed, 2.5 bath home built by Bradley Pemberton of Landmark Construction and Development. We just dropped the price to $447,000 – click here for the direct link to watch an online video tour.
I mainly talked about how it is a buyer’s market, yet we still have historically low rates. Here is but an excerpt:
“Over the past 40 years or so Lake Martin property has appreciated at about 12 to 15 percent per year,” Coley said. That return combined with the fact that a vacation home provides a place to bring family together makes it a good investment.
“I tell buyers that historically Lake Martin has strong returns like a mutual fund, but it’s better,” Coley said. “Because 30 years later nobody says ‘Hey, didn’t we have fun sitting on the dock of that mutual fund?’ You can get a return on your investment, but nothing can replace the memories that you can make with your kids on the lake.”
“No one has warm and fuzzy feelings about their 401k plan, but they do have warm and fuzzy feelings about the lake.”
Thanks, Alison, for the mention in a well written article.
Here is the picture of 1135 Lakeview Drive that she used:
Tell Your Realtor To Shut Up And Listen To You
I grew up on Lake Martin, in the real estate business. I know what I like. I know which parts of Lake Martin I prefer. I have been all over this lake, and have friends in every corner. But guess what¦
No one cares about that.
Especially my clients¦ nor should they.
One of the first things my dad taught me about Lake Martin real estate was œdont show them what you like, show them what THEY like. Simple but true.
The key to helping people be happy with their waterfront property is to focus on what they think, not you.
A realtors local knowledge and experience does matter, but only to the extent that they use that to help their clients get what they want. There are all kinds of buyers out there.
Some Lake Martin buyers prefer Kowaliga Creek to Blue Creek. Some prefer the Preserve at Stoney Ridge to the Ledges at The Ridge. It doesnt matter what I prefer.
On the selling end, in order to be the best listing agent, I must look at a sellers lake home with the eyes of an unbiased buyer, not filtered by my own preferences. I have to market each home based on its own unique properties. You dont market a condo in Stillwaters the same way that you do a cabin in Little Kowaliga.
So how do you find out what people want? You shut up. You ask a good question, then you shut up and listen to their answer.
Not that I am perfect at this. I constantly have to remind myself to be quiet and listen. I make it a habit to ask specific, dialog inducing questions – not œdid you like that waterfront lot? – rather œwhat about that lot did you like? The latter helps me understand their reasons instead of just logging a result.
The more I learn about the client, the better I can help, and the happier they will be.
I believe it was jazz great Dizzy Gillespie that said, œIts taken me much of my life to learn what notes not to play.
Amen, Dizzy.
