Looking Out From the Garage: December 2009

'tis the season for 10 Best Posts.  They are everywhere.  Here two...  Maybe I could even do a "10 Best of the 10 Bests" post...  (that might be going too far) 

I think these are my 10 Best Favorite Posts for 2009... 

From LaneBailey.com

• Think you have time to mull over that house buying decision for weeks?
• Cheap Sex and Real Estate...
• My home is worth what?
• Can a $29,000 Home be overpriced?
• Where in the World is Lilburn, GA?

And from ActiveRain/GwinnettGarageGuy.com

• The best agent to use is the one that tells me the highest price
• I turned down a listing today... because it was the right thing to do... 
• Thomas Edison, Kids' Hockey and Failure... Lesson?
• Absorption Rate?  What is this all about?
• What IS the value of an Open House?

All of these posts were from Calendar Year 2009.  For the ones on Active Rain, none of them got a feature.  Some had a couple thousand views, others only had a couple hundred.  Some of them might have been "overlooked"... others weren't. 

I liked them.  I hope you like them too.  Feel free to drop the name of the one you like the most into the comments.  And if you have a "Best of" or "Favorites" post, drop that into the comments, too.

I have just rolled out a system to update YOU when there are promotions in new home communities in and around Gwinnett County, GA.  There are days I get 6 or 7 notices from builders and developers, and there are weeks when there aren't any...  But, as soon as I get them, I will forward them to my new toy platform. 

In order to do this, I have set up a new blog here. 

No car stuff.  No fluff.  No market reports. 

Just New Home Community specials.  As soon as I get them in my email, I will post them up on this special blog.  You can subscribe to this special blog by clicking here, or visiting the blog and clicking "Subscribe via RSS".  

I'm not really a fan of Open Houses.  In fact, a year ago I would have told you that they were completely pointless in the current market, at least in this area.  Even with advertising, they weren't drawing many potential buyers at all.  Maybe a few neighbors and a few dreamers, but that was it... 

As Lee pointed out in his post, It's Time For Realtors to Stand Firm on Not Doing Open Houses, the vast majority of buyers are starting their search on the internet. 

I do understand that open houses were more successful before personal computers and the internet but now, approximately 90 percent of buyers begin their home search on the internet. Thirty six percent will find their home on the internet, another thirty six percent will find their home through the help of a realtor, twelve percent from a yard sign and six percent from a friend, neighbor or a relative. That covers ninety percent. Another five percent, will purchase new construction from a home builder or the builder's agent.

But I have a question...

What does that have to do with Open Houses?  Almost 100 percent of the people that come to my Open Houses found out about the Open House on the internet.  Sure, there are some drive-bys, and a few nosy neighbors... but Craigslist and a few other local sources can draw some traffic. 

What do you think those buyers that are finding houses on the internet are doing next?

Some of them are calling the agent they know from church... many of the rest are actually getting in the car and going to drive by houses.  And, if they find out that there is an Open House happening or coming up... if they like the house, the come in. 

There isn't pressure or perceived pressure for many of these buyers in an Open House atmosphere.  They can see the house and not really have to "hire" an agent and get committed.  They might get a Buyer's Agent AFTER seeing a house they actually like... or they might not.  But, they aren't hiring an agent first. 

I find I have to train some of my buyers NOT to go to Open Houses if they can't help it, because some Listing Agents think that if they passed within 100 feet of someone, they own them (I don't share that opinion, holding an Open House doesn't create a relationship with people that step in the yard).  And if they go they are instructed to tell the person holding the Open House that they are working with an agent. Usually, we see the houses before they ever come Open... IF they ever come Open... 

But the simple point is...

Technology HAS changed, but people haven't changed completely.  They like to SEE the houses, even after seeing 100+ pictures (yes, I have listings with 100+ pictures and multiple videos).  They like to walk around in them.  Sometimes they don't have a Buyer's Agent yet.  Sometimes they don't want to work with the Listing Agent, sometimes they do.  Sometimes they want to look and not bother their Buyer's Agent... even if their BA tells them over and over that it isn't a bother. 

And a little note for the Sellers...

Don't feel too ripped off if your Listing Agent isn't an Open House fan.  The chances of a particular home selling because of an Open House are about 2%.  Lee's post was SPOT ON in that regard.  The main reason Real Estate Agents hold Open Houses is to find more buyers...  Then we find homes that actually work for their needs. 

Bottom Line

Selling a home at an Open House is a lightning strike.  Finding someone that might be interested in buying a home is a bit more probable.  Of course, depending on the market traditions and weather and a score of other variables, they can be an absolute waste of time...

Keeping the theme from yesterday regarding improvements and their return on investment, I thought I might mention a few upgrades/improvements that can be done on a budget AND that will add value to your home.  The following links ARE affiliate links to Amazon.  Most of these products can also be found at your local Home Depot or Lowes store. 

Let's start with the floor.  When there aren't any cars in the (hopefully) clean garage, that floor is awfully big.  To make it look nice, an epoxy coat is a great addition.  Regular floor paints do NOT stand up to hot tires.  Epoxy, IF APPLIED CORRECTLY, will stand up to hot tires and a lot of other things...  There are several products from Valspar and Rustoleum that fit the bill.  And while the products may say they cover up to 400 square feet, expect half of that, so a two car garage would likely require two kits.  The kits run $70-$90 each.  If your garage has oil staining, expect to spend some time and money cleaning that up... possibly even bead-blasting or grinding depending on the severity.  But it will be worth it.  If you are willing to put the time into the prep work that might be needed... 

Another easy upgrade for the garage is a Garage Keypad Remote.  A few years ago, they were only on higher end homes, but the cost has dropped significantly.  Depending on brand, the units usually run between $20-$40.

The final easy upgrade for the garage is lighting.  Most builders tend to under-light the garage.  Many two car garage only have one or two small fixtures.  A 400 square foot room needs more than a pair of 75 watt bulbs...  A low cost option is a pair of fluorescent strips.  The power consumption is similar to the incandescant bulbs, but they provide considerably more light.  This is a nice light for the garage.  They are pretty easy to wire into the existing fixture if you are electrically inclined.

There are lots of other upgrades for the garage, but these are projects that can be finished in an evening or a weekend (floor coating...).  They are reasonably priced and should provide a good return on investment. 

The next level would be cabinetry and tool storage/organization.  Those projects are also fairly easy, but can be much more costly, depending on the storage options. 

Good luck... and give your car a cool home, too.

The NAR Magazine (called REALTOR) recently published a story about what improvements enhanced a home's value the most.  It was also broken down regionally...

For the Southeast (they called it South Atlantic, DC, DE, FL,GA, MD, NC, SC, VA and WV), the absolute winner was a "midrange" 20 gauge steel entry door.  Nationally, that change added 128.9% of the cost as value to the home.  Here in the Southeast, it added 146.8%...  with an expected cost of $1065 and a return on investment (RoI) of $1562.

Rounding out the top five here in the Southeast:

• Attic Bedroom - 90.0% - Cost $43,540, RoI $39,171.  Honestly, I don't think that there are as many homes in the Atlanta area that would fit this profile as some other areas...
• Fiber Cement Siding - 86.3% - Cost $13,027, RoI $11,242.  Obviously this doesn't apply to brick homes...  And Hardi-Plank or similar sidings are much better for resale than vinyl or aluminum.
• Midrange Basement Remodel - 84.4% - Cost $55,337, RoI $46,707.  This is a tough one... The perfect remodel for one buyer is perfectly wrong for another.  So, I would say that finishing a basement should be done to meet the needs of the owner and resale should take a backseat.... that said, use quality materials and don't cut corners.
• Midrange Wood Deck - 79.8% - Cost $9,505, RoI $7,589.  I'm not shocked by this one.  It expands the liveable space of the home... more enjoyment.  It also increases the visual appeal of the back yard.

I actually skipped Foam-backed Vinyl Siding at 80.9%.  I think that it would depend greatly on the pricepoint of the home here in Gwinnett County, GA.  Buyers looking at homes over $250,000 or so expect fiber cement siding here.  However, homes uder $200,000 might be good candidates for higher end vinyl siding.  But...  The cost averages about $11,848 and the RoI averages about $9,580.  So, the cost of Fiber-cement and the vinyl or similar.

Caveat...

One thing to keep in mind is that average costs vary and RoIs will vary even more.  Much can depend on the neighborhood, style of home and age of the most recent renovations.

As an example, if the subject home is the only one with a substantial deck in the neighborhood, the deck won't add as much value.  If all of the other homes in the neighborhood have a deck, then it could increase the RoI.

Obviously a brick home isn't going to benefit from siding, but replacing vinyl siding with other vinyl siding, or even replacing vinyl with fiber-cement may not increase the value as much.

Finally, freshening recent renovations might not be as effective as renovating a more out-dated area.  A Midrange Minor Kitchen Renovation comes in at 77.7% (Cost $20,504, RoI $15,923).  But, if the kitchen has modern appliances and cabinetry, it won't add much to the value to redo the room...  However, if the appliances and cabinetry are severely dated, the value will get a much bigger bump.

DIY...

All of the costs assume that a contractor would be used for the work...  So, there are a lot of repairs, renovations and upgrades that could be done by a COMPETENT home-owner and increase the value beyond the costs.  However, that also assumes the value of the home-owners time to be zero.

from LaneBailey.com

Image by Getty Images via Daylife

Two years ago we were staring at the beginnings of a financial crisis.  Credit was clogged up, home values were sliding and the government was mulling over ways that they could intervene.  They wanted to save everyone…

I had opinions then, and I have opinions now.

Oddly, we are still facing many of the same issues, and we are still looking to the future when there are supposed to be even more foreclosures and ill effects.

Take a look back and see what the way forward looked like then…

Back in 2007, Money Magazine selected Suwanee, GA as one of the Top 10 Best Places to Live.  And it is a great place.  Situated between Duluth to the south Buford to the north, it sits along the banks of the Chattahoochee at Suwanee Creek.  While mostly in Gwinnett County, parts of the Suwanee mailing address are also in Forsyth and Fulton Counties. 

1838...

That was when the US Government gave Suwanee a Post Office, but it was 1949 before Suwanee incorporated.  Even though it was incorporated, it remained a sleppy little agricultural town until the 1970s.  In 1970, there were only 615 people living here.  In 2000, there were over 8700.  The 2007 estimate is over 11,000.  And the 30024 ZIP code, which is the Suwanee mailing address has an estimated 41,088 people (2007). 

Before the early 1800s, the area was inhabited by the Cherokee and Creek Indians.  Some think that the name Suwanee derives from the Shawnee Indians, who inhabited the area before the Cherokee and Creek.  In 1817/1818, the area tribe ceded the land to the US government. 

In 1869, the Georgia Airline Railroad bought a right of way, and the village grew around the depot constructed there.  It was the transfer spot from the Lawrenceville-Suwanee Narrow Gauge Railroad to the Southern Railroad.  From there, passengers could ride into Atlanta. 

Not just an old town... there is Old Town... and Town Center.

Suwanee recently completed a large portion of its Town Center project.  In addition to Town Center Park, home to festivals, free concerts and movies, there is a new City Hall complex, shops, townhomes, condos, single family homes and offices.  It sits at the corner of Buford Highway and Lawrenceville-Suwanee Road. 

Suwanee's Old Town is just across Buford Highway.  It encompasses a few more shops, as well as the Suwanee Branch of the Gwinnett County Library and PlayTown Suwanee.  Suwanee’s downtown revitalization efforts have earned it accreditation from the National Trust for Historic Preservation’s Main Street Program.

Adjacent to Town Center is the Suwanee Creek Greenway.  It is a four mile hard surface trail that winds from Suwanee Creek Park to George Pierce Park.  It winds along Suwanee Creek, with a wooden boardwalk from the Greenway to the Town Center area.  It is available for walking, jogging and biking along the creek. 

But wait, there's more...

Suwanee, with its proximity to I-85 and Peachtree Industrial Blvd, is very convenient to the Mall of Georgia, Discover Mills and numerous other shopping and recreational opportunities...  The Gwinnett Braves and Gwinnett Gladiators both play nearby.  The Arena at Gwinnett Center hosts concerts and other events, as well.

It's pretty easy to see why Money Magazine liked this place...

And you can live here too...

To see the latest market stats for Suwanee, take a look here... 

If you'd like to browse homes currently for sale in Suwanee, check this out...

In December of 2007, we hadn’t given almost a billion dollars to banks.  But the government and the blogosphere was abuzz with talk about bailing out home owners.

I have to say, I have re-read that opinion a time or two, and knowing what I know now, I’m not sure I would change it.  I still think it sucks for the millions of home owners that have lost value because a neighbor was foreclosed and the house went downhill.  Heck, I’ve been affected by that… as you probably have as well.  But at the same time, giving that neighbor that made bad decisions, and the bank that made bad decisions a free pass so that I don’t feel the impact doesn’t make sense either… especially since I would STILL feel the impact in the form of government debt and taxes.

Take a read, and let me know what you think.  Now that we have two years of hindsight…

Without a doubt, EVERYONE is looking for a deal if they are in the real estate market.  Barely a day goes by that I don’t get a call asking me about foreclosures and short sales.

However, those aren’t always the best deals.  In fact, on foreclosures I have seen multiple properties go above list… and in some cases higher than they should have gone.  At the same time I have seen private party sales that went at great prices.  Short sales still seem unwilling to close in most cases.

Regardless, those that move boldly AND logically are the ones that will be the winners.

Take a look at this post from December 12, 2008.  While the average value in much of Gwinnett County has dropped 6% or so… people that bought last year when there was little activity in the foreclosure market were getting better deals than some buying today…

from LaneBailey.com

Image via  Wikipedia

Yes, Georgia, there is a Duluth nearby… you don’t have to go all of the way up to Lake Superior to find it.

About Duluth, GA…

Duluth is one of the most prestigious areas in Gwinnett County, GA.  It is home to several high end developments, like Sugarloaf Country Club and St. Marlo County Club (which is actually in Forsyth County, but has a Duluth mailing address).  Duluth does actually extend slightly into both Forsyth and Fulton Counties, but it primarily in Gwinnett.

As of July, 2008, the population of Duluth was estimated at about 26,000 within the city limits.  That represented an 18% growth since 2000.  Forbes Magazine ranked Duluth 26th on their list of the best places in Amercia to live.  NCR, Primerica Financial and AGCO all call Duluth home.  Also calling the area home are Bow Wow, Terry Pendleton and many other members of the Atlanta entertainment and sports industries.

The City of Duluth goes back to Evan Howell’s cotton gin at the Chattahoochee River.  He built a road connecting his gin to the Old Peachtree Road.  That brought settlement to the area, especially after Gwinnett became a county in 1818.  The town was renamed to Duluth in 1871, honoring railroad built between Duluth, MN and the new Duluth, GA.  Even up until the 1970s, Duluth was quite rural, but has grown considerably since then.

Recent additions in the area include the Arena at Gwinnett Center and the commercial areas along Satellite Blvd. and I-85.  The Arena at Gwinnett Center is home to the Gwinnett Gladiators, while the Atlanta Thrashers practice at the nearby Duluth Ice Forum.

Life in Duluth…

Because Duluth is located along I-85, there is easy access to Atlanta, as well as other points along the I-85 corridor.  The Mall of Georgia, Discover Mills and Gwinnett Place Mall are all nearby, as well as dozens of smaller shopping venues.

There are lots of recreation opportunities near Duluth as well.  Aside from the Arena at Gwinnett Center, and the Convention Center, the Gwinnett Braves play nearby in Lawrenceville.  The #1 rated Gwinnett County Parks are well represented by McDaniel Farm Park and the Shorty Howell Park.

And you can live here too…

To see the latest market stats for Duluth, take a look here…

If you’d like to browse homes currently for sale in Duluth, check this out…

from LaneBailey.com