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Archive for July, 2007

Soft Market Doesn’t Always Mean A Lower Price

As a real estate marketer, part of my job is to assist sellers with setting a list price for their property. While I might suggest one price - the seller often wants to set it at a higher price.

Sometimes the price is so high that I will not take the listing.

I could easily post many examples of how sellers and their unreasonable list prices have caused their properties to languish on the market for months… even years… but that is not the purpose of this article.

No, this time it’s to say that I was wrong.

A client of mine had a condo in Kennesaw that I helped him purchase for $179,000 back in 2004. The community was relatively new at that time, and consisted of twenty units. The highest sales price of any of the comparable units was $193,000 for a unit that sold shortly after my client purchased his. Since then, the market softened and comparable units have sold for as little as $175,500.

When asked to assist him, I analyzed the market and saw that only one comparable unit was for sale… and that unit had an initial list price of $192,900 and had been on the market since May 2006. It was under contract when I listing my client’s unit, and eventually sold for 194,900 with the seller paying $4830 in closing costs.

Since this comparable unit was in good condition, it seemed unreasonable to me that we could expect a much higher sales price - especially since the comparable had been on the market for so long. So when my client wanted to start with a list price of $210,000 - I cringed.

Normally, I would have simply passed on the listing… but since this was a previous client - I agreed to give it my best shot. Besides, he agreed to lower the price if we didn’t get any offers in quick order.

So… I went to work with getting the marketing rolling - including building one of my single property websites. We got some good activity, and in a few weeks we had an offer.

The buyer found the website as a virtual tour on one of the many websites that our tours link to… and fell in love with the home. By the time she was able to view the property in person - she felt like she was already home. How do I know this? Because at the closing I asked her… and she told me so.

Her initial offer was not very impressive… but we held firm on our price. By the time all was said and done, my client paid her closing costs of $6500 and sold his unit for full price at $210,000.

So the moral of the story is that the real estate agent is not always right - and that a good marketing effort will get you top dollar… even in a buyer’s market.

Our friends at Realist have tabulated the sales activity of ALL local real estate transactions in Gwinnett County Georgia, and these results are shown in the table below:

Like other counties in the metro Atlanta area, Gwinnett county is experiencing a continued slowdown in single family home sales… however this slowdown has not resulted in a reduction in the median sales price.

The increase in median prices may be due to the number of luxury homes that continue to be built - and sold - in Gwinnett.

Sales of condominiums, however, lag considerably behind last years figures with a substantial drop in the median price. At current pace, it is possible that fewer than half of the number of units sold last year will be sold this year.

Helpful Tips For Sealing Your Deck

Posted by Doug Quance on July 13th, 2007

A Beautiful Deck Adds Value To Your Property

A common item of neglect in home ownership is that of fences and decks. Hiring a contractor can be expensive - but I can give you some tips that will help you accomplish the task properly and get professional results.

Preparing The Surfaces

To properly prepare the surface, you need to first determine whether or not any sealers remain. Obviously, if you can see the color of the stain, you can skip this step and proceed to stripping the sealer.

Drip some water on various parts of the dry deck surface and see if the water is absorbed in fifteen minutes or less. If not, you will need to strip the sealer. If the water is readily absorbed, stripping will not be necessary.

How To Strip A Deck

To strip the deck, you will need deck stripper (sodium hydroxide), a deck brush (on a pole), rubber gloves, goggles, waterproof boots, a pump sprayer, a water hose, and a pressure washer. (The pressure washer can be the small electric home model.)

Your local hardware store will probably have the supplies, and you can always rent a pressure washer if you don’t own one.

Following the directions for the stripper, you will first water in all the landscaping around the deck. Sodium hydroxide - the active ingredient in deck stripper - is found in drain cleaner, so you want to be sure that you use copius amounts of water around your grass and shrubs. Feel free to water the deck, too!

If you have many sensitive plants nearby, you should cover them with plastic sheeting to protect them.

Using the pump sprayer, coat a small workable section (8′ x 8′) and let the chemicals go to work - usually for 15-20 minutes. Make sure the surfaces stay wet, so give the area a light spray of water if needed. While the chemicals are working, use the deck brush to scrub the surfaces to help loosen the sealer.

Keep in mind that deck stripper will take the paint off of your house! Be careful when using strippers! Use plastic sheeting to protect areas of concern!

At this point, I find it best to use the hose with a garden nozzle to flood the area with water to rinse the treated area and continue to water in the surrounding plants and grass.

Continue to apply the deck stripper to small areas until all deck areas have been stripped and rinsed, then move to the railings and stairs (if applicable).

After all the areas to be stripped have been scrubbed and rinsed, it’s time to use the pressure washer to further clean the surfaces. If your pressure washer is small, you can use it at full force with a 40 degree nozzle (wide angle) as long as you don’t get the nozzle too close to the wood… usually no closer than 6 inches.

If the pressure washer is a larger unit (gas powered engine) then run it at low speed - slightly above idle for large units above 2500 psi. The idea is to use the chemicals to remove the sealer - not the power of the pressure washer.

After the deck has been power rinsed with the pressure washer, let it dry and examine if the sealer has been successfully removed. If not, a second application of deck stripper will be necessary following the same procedure outlined above.

How To Brighten A Deck

Whether or not you stripped your deck - you will need to brighten it. If your deck has turned gray, then the sealer has worn off and simply brightening it will help to restore its original color and look. After you strip a deck, the deck will not have all of its original lustre, so the deck brightener will help to restore it.

There are two different types of brighteners. One is an oxygenating type cleaner for use with pressure treated lumber - the other is an oxalic acid-based cleaner for use with cedar. Either can be used on either type of wood, but the results will always be better if matched to the proper wood they are designed for.

Similar to the deck stripping process, you apply the deck brightener in a similar fashion. Some deck brighteners are powder-based, so you will have to mix them in a large bucket before dispensing from the sprayer.

Although deck brighteners are not as corrosive as deck strippers, care should still be exercised in their use. Be sure to follow the directions carefully.

Let It Dry Thoroughly

Be sure to let all of the wood surfaces dry thoroughly before applying your sealer. Two days without rain should be sufficient in the summer months. You want to be sure that the surface stays clean during this period! Keep the pets and children off of the deck until the project is finished.

Time To Apply The Sealer

Sealers are manufactured by a variety of companies, and most of them aren’t very good. This is a case where if you have heard of a particular brand - you should probably stay away from them.

These sealers come in both water-based as well as oil-based formulas - and I reccommend that you only use the oil-based sealers. While it might be nice to feel warm and fuzzy about the environment - you will quickly lose that warm and fuzzy feeling when you’re performing this trick again next year. Water-based sealers simply do not perform as well as oil-based sealers.

While you might like the lighter stains, these stains do not usually contain enough iron oxide to provide the UV protection that is necessary to protect your deck from the sun’s harsh rays. Select a sealer with a darker color.

I prefer Wolman’s for a mid-grade sealer… and you can find them at your local Ace Hardware stores. If you want to step up to the high-grade stuff, you might try Wood Iron (if they’ll be so kind as ship it to you from Colorado).

Application will depend upon the size of the deck. On a small deck, I reccommend doing it all by hand with a brush. On larger decks, using the pump sprayer to apply the sealer will speed up the process - but keep in mind that all sealers must be brushed in for best results. On really big decks, an airless sprayer is the most efficient method of delivering the sealer.

If you need to protect the house or your landscaping from getting sealers on them - use plastic sheeting! Tape it up where needed, and be sure to protect the patio beneath the deck, should you have one. Be sure to keep some mineral spirits and a few rags around, as I’m sure you’ll need them.

I like to get a coat down on the deck, first - then move to the railing and spindles. The reason for this is that when you drip stain down onto the deck - the drips will be noticeable… so putting a  coat on the deck first makes it easier to blend those drips into the surface more evenly.

Once the deck has taken the sealer, I then move in for the next coat. Don’t try to skip the second coat, folks. You have spent too much time cleaning and preparing the surface to be sealed properly - don’t go cheap on it now. Spend the time getting the second coat worked in and your deck will look better and the sealer will perform better. (My personal preference is to go for the third coat… but that’s me.)

By getting a good seal coat applied, you can come back in two years to perform a good cleaning and add another maintenance coat without having to strip the old sealer.

In Summary

A well-maintained deck can be one of the most enjoyable parts of a home. But a weathered and neglected deck can be a detraction if you are selling your home.

If you a handy-type person that doesn’t mind getting your hands dirty, then I invite you to clean and seal your deck, yourself. If this sounds like more hassle that it’s worth - by all means do contact a qualified wood restoration company to get your deck back into showcase condition.

Our friends at Realist have tabulated the sales activity of ALL local real estate transactions in Douglas County Georgia, and these results are shown in the table below:

Since Douglas County has been such a ideal place for the outward growth of Atlanta, it comes as no surprise that sales in April are actually a little ahead of the same period last year. This comes on the heels of March, where this years sales figures were a little less than March last year. Of course, a great number of these sales have been new construction. The overall pace for this year is typical for much of the greater Atlanta area - down by roughly 20-30%.

The condo market, on the other hand, is tanking. Not just doing poorly… they’re taking a beating. April sales this year only total 7 units with a median price of $106,400 versus last year’s number of 48 at a median price of $189,300. And it’s not simply a slow month, as March’s sales volume was a dismal 5 units on a median price of $103,300. The yearly numbers are equally as abysmal, with only 113 sales through June 11.

Our friends at Realist have tabulated the sales activity of ALL local real estate transactions in Dekalb County Georgia, and these results are shown in the table below:

The sales of single family homes in Dekalb County was considerably slower in April versus the same period a year ago, and the median sales prices slipped slightly to $178,000. Year to date sales, however, are off by a larger margin.

Like some of the other counties in the greater Atlanta area, Dekalb County has been experiencing increases in the median price of condos.

In 2006, the median price was $191,900 on 2219 sales. As you can see, the pace appears to be slowing while the median price has been climbing.

Our friends at Realist have tabulated the sales activity of ALL local real estate transactions in Cobb County Georgia, and these results are shown in the table below:

The sales of single family homes in Cobb County was considerably slower in May versus the same period a year ago, but the median sales prices held steady at $205,000. The current median sales price is $200,000, which is below the previous years median price of $202,000 - but most notable is the slowdown in the number of sales - which is substantially below the previous years pace.

Like some of the other counties in the greater Atlanta area, Cobb County has been experiencing increases in the median price of condos.

In 2006, the median price was $198,900 on 5003 sales. As you can see, the pace appears to be slowing while the median price has been climbing.

June 2007 Atlanta Listing Trends In

Posted by Doug Quance on July 7th, 2007

Atlanta Home Prices and Inventory Analysis

In our effort to keep Atlanta sellers and buyers in touch with our local real estate statistics and trends, here are the latest figures courtesy of HousingTracker.net:


Trend 07/02/2007 1 month 3 month 6 month 12 month
Median Price $218,000 +0.2% +1.4% +3.2% +5.4%
Inventory 118,965 +2.0% +13.3% +30.8% +26.4%
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Since Atlanta uses two listing services (of which not all listings are in both services) it is difficult to see the total sales trends for the greater metro Atlanta area. We can, however, use this data to understand the relationship between the prices that sellers are asking - and the amount of inventory available.

As you can see, the median asking price inched up slightly.

Inventory levels continue to rise, albeit at a slowing pace.

Median asking prices have held steady in the upper percentiles over the past few months. In the 25th percentile, the asking price has remained virtually unchanged for the last twelve months at $150,000.

Click Image For A Larger View

As you can see, inventory levels continue to achieve record levels - with no end in sight.

As a seller, you must be sure that your property exceeds the expectation of the buyer in all respects. Your property must not only be priced properly, but it must be in top showing condition.

Says Free Meals, Holiday Hams Are Common

A Fulton County erosion inspector arrested for taking bribes said it was common for county inspectors to get gift certificates for free meals and holiday hams from builders they regulate.

In his first interview since being arrested by federal agents, Don Mitchell, 56, refused to directly address whether he was guilty of the charges that have him facing up to 30 years in prison.

Mitchell said coverage of his case has made him look like someone who spent his days "shaking down" builders rather than properly enforcing county codes.

"I am a humble man who is accused of some life-shattering stuff," Mitchell said. "I might have made some mistakes but that’s not going to define me. I was the best inspector Fulton County ever had."

(read the full story here)

I wish I could say that I’m surprised… but I’m not.

We can only hope that this will send a message to other county officials who might be tempted - or worse yet… already on the take.

This kind of behavior can not be tolerated.