Looking Out From the Garage: September 2009

I just completed a 101 post series.  In fact, I wrapped it up just about an hour ago.  I have been working on it for almost a year...  When I started, I was going to "dribble" the posts at random times, but I figured out after a few weeks that I needed to schedule the posts.  After that, they were mostly posted on Wednesdays and Sundays.  In fact, for the last nine months or so, I have been posting these on LaneBailey.com every Wednesday and Sunday... I haven't had to think very hard about what to post on those days, because I had the list. 

I have already come up with a few ideas for new series to begin in the next few weeks... 

So, here is the list... 

1. Ariel Atom
   
2. Scorpion 4x4
   
3. Mallett Corvette
   
4. Bowler Nemesis
   
5. Lancia Stratos
   
6. Jeep Wrangler/CJ
   
7. Shelby Mustang
   
8. Ford Bronco
   
9. Lotus 7
   
10. Subaru WRX STi
    
11. Trophy Truck
    
12. Shelby Cobra
    
13. Oshkosh 10x10 Truck
    
14. Caparo T1
    
15. Ford GT40
    
16. Unimog
    
17. Prodrive P2
    
18. Ford RS200
    
19. Morgan Plus 8
    
20. Tatra… more power
    
21. TVR Sagaris
    
22. Audi Quattro Sport S1
    
23. Camaro Z28 1LE
    
24. Eleanor Mustang (67 Shelby Fastback)
    
25. Hummer H1 Alpha
    
26. Thunderbolt Fairlane and Lightweight Galaxy
    
27. Dodge Shelby Charger Turbo / Omni GLHS
    
28. Stutz Bearcat
    
29. Marmon Herrington Ford 4x4/Napco GM 4x4
    
30. Ferrari 250 GTO
    
31. Cord 810/812
    
32. Lead Sled
    
33. Mini Cooper S (old style)
    
34. DeTomaso Pantera
    
35. Toyota 4Runner
    
36. Mitsubishi Evo
    
37. Noble M-400
    
38. Fabulous Hudson Hornet
    
39. Rat Rods
    
40. Ferrari F40
    
41. Toyota MR2
    
42. Volkswagon GTI
    
43. Icelandic Formula 4x4
    
44. Honda Civic Si
    
45. Porsche 959
    
46. Buick GNX
    
47. GMC Syclone/Typhoon
    
48. 55-57 Chevrolet
    
49. GTO Judge
    
50. L’il Red Express Truck
    
51. Corvette ZR1
    
52. Renault R5 Turbo
    
53. Shogun
    
54. Dodge Power Wagon
    
55. Cougar XR-7G
    
56. Pontiac G8GXP
    
57. AMC AMX
    
58. Ford F150 Raptor
    
59. 88 Pontiac Fiero
    
60. Monster Miata
    
61. Porsche 911
    
62. Lotus Exige S260
    
63. Boss Mustang
    
64. Cougar Eliminator
    
65. 67 Z/28 Camaro and 69 Yenko L72
    
66. Ford Lightning
    
67. Lotus Esprit
    
68. Jeep Rescue
    
69. Lancia Delta Integrale Evolution II
    
70. Dodge Viper
    
71. Pinzgauer
    
72. Dodge Dart
    
73. CXT Truck
    
74. CLK65 AMG Black Series
    
75. Vector W2 (et al)
    
76. Fleetwood Revolution LE (RV)
    
77. Birdcage Maserati
    
78. Rock Buggy
    
79. Yamaha Rhino
    
80. Kawasaki Vulcan Drifter
    
81. Classic Cadillac Eldorado Barritz
    
82. Triumph Spitfire
    
83. BMW M3
    
84. Cadillac V-16
    
85. Hayabusa
    
86. Alfa Romeo GTV
    
87. Jeep All Steel Wagon
    
88. Ford Model T
    
89. Rolls Royce Silver Cloud III
    
90. Datsun 240Z
    
91. Aston Martin V8 Vantage
    
92. Bentley Mulsanne Turbo
    
93. Fleetwood Evolution E3 Camper
    
94. Harley Davidson V-Rod
    
95. Porsche 928 S4
    
96. NASCAR Cup Car
    
97. Cadillac CTS-V
    
98. BMW M5
    
99. Bugatti Veyron
    
100. Ascari
     
101. My own Jeepster-Commando/Wrangler/F-350 4x4

Here is a link to the series.  The links above are for each of the individual posts.

Chris Brogan? 

He was just the keynote speaker yesterday at the New Media Atlanta event here in Atlanta.  Honestly, I knew from the bio that Matt Fagioli sent out (excitedly) that Chris co-wrote Trust Agents... but I hadn't heard of the book, and I didn't know he was "significant". 

So shoot me...

I volunteered to help out with the conference... Matt knows I am a sucker for helping out like that... and after helping with registration, I got to spend a little time doing other things.  One of the other things was hanging out in the "Rockstar" Lounge... the VIP area for the conference.  Officially, I was acting as a concierge...  and a bouncer.  Unofficially, I was hanging out with Patty Keller, Lori Bee and a few other real estate folks. 

Between chatting with friends like Jeff Turner, Reggie and Nicole Nicolay (nik_nik) and others, I had the chance to just hang out with Chris Brogan.  He was avidly following BackNoise, watching as the other speakers were getting (mostly) dissed by attendees.  Some of the comments were pure snarkiness, others were more thought out.  It was like a train wreck...  Chris, and many others, couldn't stop watching. 

He's a really down to earth, normal (reasonably) guy.  But he is a little different... 

When he got up on stage, instead of talking with a powerpoint, he tossed up BackNoise on the big screen.  He addressed the snarkiness.  (even talked about crop dusting).  He used the crowd...  Excellently. 

Talk about transparency... 

But what was really impressive was what he had to say.  Go buy a book.  (No, that wasn't what he said, that is what I am saying...)  If you want to learn about what he was saying, buy his book.  Also, read his blog AND subscribe to his newsletter. 

Almost everyone here knows of Seth Godin.  And he is among the "must reads" for learning to market.  But... he isn't the only one...

images by Jennifer Carter

The October issue of Realtor Magazine (our industry magazine) had an interesting article about dispelling myths while educating first time home buyers.  The third point was about the realities of "bargains".

There are absolutely some bargains in the market...  But, often those properties that are the real bargains are NOT the ones that have rock-bottom prices. 

The HECK you say...

Really...  I have been in some pretty cheap properties in the last few months.  It seems that a house priced at $25,000 in a neighborhood or $150,000 homes would be a slam-dunk, right?  That deal starts to look WAY less attractive when the issues get added up... 

• roof
• mold
• floor coverings
• appliances
• plumbing fixtures
• electical fixtures
• copper wire
• copper plumbing
• landscaping (not to make it pretty, but to stop water from washing away the foundation)
• HVAC
• driveway paving

Seriously, I looked at a house that needed all of that.  It would be faster, easier and probably cheaper to bulldoze the house and start over.  Since the lot would be worth about $10,000... and it would take about $15,000 to clear the lot and get it ready for a new building... This wasn't a deal.

Of course, most aren't that severe...

However, there are a lot of times where one house will be significantly cheaper than another for sale, but after correcting its issues, it actually ends up costing more.  It might be simple things like carpet and appliances, or maybe something more involved, like a roof or HVAC. 

This often ties back to "I need to see all of the options", presented earlier.  In this case, we just want to get a look to make sure that it really is in that bad of shape. 

I have looked at a lot of "bargain" properties and have a pretty good feel for them.  There are some great deals, but they are usually not the first ones to present themselves...  They are generally in much better shape and slightly more expensive. 

Finally...

Remember that the deal properties often still need work.  And it is probable that the buyer will have to come up with cash for that work, in addition to downpayment and other closing costs... it isn't something to bootstrap.

Tomorrow (Friday, Sept. 25th) is the day...  There are still a few tickets available for purchase at the event... and there is even a little time to grab a ticket online. 

So, are you going to New Media Atlanta?

If you have been to REtechSouth, you have an idea of what New Media Atlanta is going to be like.. but just an idea.  Instead of concentrating on the real estate industry, this is about making the business case for Social Network Marketing. 

The speaker list is impressive!  And, for those that get the "Rockstar Pass"... you will have unprecedented access to the speakers...  In fact, you will get to sit down with them and have lunch, as well as schmooze with them during the "After Party"...

Several of the speakers are people I have spent some time with.  These are cool people to hang out with, in addition to being incredibly insightful about the future of social media and technology.  Of course, the people that I know are involved in the real estate technology space... but it will be really exciting to see what the thinking and strategies are outside of real estate. 

If you can still get a ticket and make it to the event, say hi.  You'll find me in one of the event staff shirts.  You might even run across me in registration...

;^ )

The October issue of Realtor Magazine (our industry magazine) had an interesting article about dispelling myths while educating first time home buyers.  The second point was about excessive caution, and buyer, especially new buyers, wanting to see "everything on the market".

I have to admit... the writer at Realtor Magazine got another solid base hit.  I have worked with buyers that wanted to see a LOT of houses... even houses that really didn't suit their purposes... even houses that they KNEW didn't suit their purposes prior to wanting to see them.  And there are a LOT of houses on the market. 

While inventories are down around 25% from last year, there are still about 80,000 homes on the market in the Atlanta Metro area.  Generally, in ANY given price range and area there are scores of homes.  Even Lilburn, GA has several dozen homes priced under $150,000.  And by the time a buyer makes his or her way through all of them, there are new ones to see.  It just isn't practical.  Tighten the search criteria...

It isn't just a matter of spending a lot of time looking at houses... it is losing out on houses because of spending time looking at other houses...  It goes like this...  A buyer goes out and looks at 5-10 properties.  They find a couple that they like and one that they REALLY like.  Instead of deciding to write an offer, they feel that there is time to look (after all, the market is weak, right?).  So, they schedule more time to look at homes.  In the mean time, the home that they REALLY liked goes under contract to another buyer.  When they have looked at more homes and decide that the home that they REALLY liked is the one that they want to buy... that home is no longer available. 

We call it analysis paralysis.  Another type of analysis paralysis comes after the buyer decides to write an offer.  They spend days and days trying to figure out what to offer.  While they are doing that, another buyer puts the house under contract. 

Don't get me wrong... these are important decisions.  Buying a home is a BIG deal... ESPECIALLY for first time home buyers.  You want the right home and you want it at the right price.  I understand.  But, I also don't want you to regret a lack of action.  Right now, if you see the right home, be ready to make the offer.  We'll check the comps and craft the offer... but YOU need to be ready. 

Being ready means getting prequalified with a lender.  Getting ready means knowing how much money you'll have available to close.  Being ready means knowing that you have the down payment.  Being ready means being prepared to break a lease or being out of the lease in an appropriate time frame. 

But, being ready may mean getting the right house at a great price.

The October issue of Realtor Magazine (our industry magazine) had an interesting article about dispelling myths while educating first time home buyers.  The first point was about the weakness of the housing market. 

They are absolutely correct that we can't flip on the TV, radio or computer, nor pick up a newspaper or magazine... or even sit in a restaurant without hearing about the tremendous "Buyer's Market" taking place right now.  Quickly, the common wisdom is that since there are few buyers in the market, the ones that are there can beat sellers into incredible deals... 

Of course, there is some truth to that.  There aren't as many buyers in the Gwinnett County and Lilburn, GA markets as there were a few years ago... at least buyers that can get financing.  BUT... in some segments, there is actual competition for properties.  The First Time Home Buyer's Tax Credit is pushing buyers into the market at the entry level.  Prices are rising, and we are seeing properties bringing multiple offers.  For now. 

So, while there is still definite weakness in the luxury market, the entry level market is much different.  Just as the market can vary from one ZIP code to another, it can also vary by price range.  From now until the beginning of November (the credit currently is set to expire at the end of November, but most closings take 30 to 45 days to consumate), I think we will continue to see strength in the entry level market. 

This is actually helping the move-up market, since many of the first time buyers are freeing the sellers to step up to a new (to them) home. 

Things could be very different by January...  Or not.  If this indeed kicked the market, then we may see continued strength into the first quarter of next year.

I wrote a post not long ago about how water (uncontrolled) can destroy your house, and how simple things like gutters and paint can protect your investment. 

But this isn't abut anything so trivial... 

If you haven't been paying attention to the news... or you aren't reading this post in mid to late September (2009), we are having some serious water issues here in Atlanta.  The words 100 year flood are making the rounds... and I have NO reason to not believe that.  I have been here 20 years and have never seen anything like this. 

While out and about today, I saw displaced roads, flooded creeks and rivers flowing over bridges.  Those things all happen sometimes, but the word is that there are several HUNDRED roads closed from flooding.  And the rain hasn't stopped. 

Here is the important part...

So far there are six people that have died in the floods.  Most of them have died in their cars.  All of the folks that have died in their cars have died while driving through flooded roadways... and had their cars swept from the road. 

Simply, if a creek or river is FLOWING over the road, do drive through it.  Sure, you MIGHT make it through if the water is low enough.  But you might not.  Is it worth it?  Not for me...  

Stay safe... 

I am perfectly willing to admit that I have taken Jeeps through creeks that were fairly deep.  Even some that were running pretty fast.  But there are a couple of HUGE differences.  With the larger tires and lifted suspensions, the vehicle is well out of the water.  A standard sedan starts getting pushed by the water as low as six or seven inches.  My jeep kept the body clear of the water for almost two feet... 

And then there was a "happening" in Kane Creek in Moab, UT.  Some friends had a Jeep start to float while crossing the rain swollen creek.  The Jeep would have kept floating for a while it not attached by winch cable to a stable object.  As it was, it rolled in the creek, and the driver barely escaped a dunking by climbing out the passenger side and jumping to shore.  The Jeep was totaled.  It could have easily been much worse. 

And stay smart...

Today I saw a car parked in the middle of the road after a deep spot (pooled, not flowing).  The engine may have been toast (we call it hydro-locked.  Water doesn't compress, so if it gets into the engine, bad things can happen.  And the worst thing to possibly do is try to turn the engine over with the starter if it stalls in the water.  Instead, get towed out, and then take out the spark plugs.  Turn the engine over with the starter (watch out, because gas/water may spray out a few feet).  Shoot a little WD-40 in each cylinder and then reinstall the spark plugs.  If there are ugly, unnatural sounds, it might be too late, the damage may already be done. 

Sounds like good reasons to NOT drive in deep water, huh?  Death or mechanical devastation...

Yep... another plan. 

But, as a home owner, there are a lot of things to keep up with.  Air filter changes, painting and gutter cleaning.  Those are just some of the tasks that we need to schedule... and then there is caulking, raking, trimming shrubs and fertilizing the lawn.  That isn't even including things like updating the amenities inyour home... 

Sure, every once in a while we think it might be nice to redo the kitchen or the bathroom.  Maybe there is a thought about expanding the garage, building a deck or opening up a wall.  It could be adding a skylight or getting new windows... even adding insulation. 

The point is that there are a LOT of things that we, as home owners, need to keep up with... or that we want to change.  And a great tool for that is a longer term plan for the changes we want to make, and how they can be included in the maintenance and upkeep that we need to do anyway. 

After all, if the plan is to add a new master suite, do we want to paint the house before we tear off the siding?  If we are going to replace the roof, maybe that would also be a good time to install the skylights we've been thinking about.  And, of course, caulking and then tearing out the windows to install new energy efficient units would be kind of pointless. 

So, here is an idea...  Sit down and list out all of the things you'd like to do to your home.  Whether it is getting new appliances, remodeling the bathrooms, painting the bedrooms or adding new landscaping, list out everything you can think of... get the whole family involved. 

Then comes the hard part...  Group together the various items to make a plan.  Try to put them into groups that are both achievable (don't bite off too much at once) and related (sealing the crawlspace and replacing the windows aren't a good match...). 

Prioritize the groupings.  If the house is ready to be painted, maybe the kitchen remodel should be put a little lower on the list.  If the stove doesn't make heat, perhaps the windows need to move down the list a notch. 

Cost out the various projects.  This is very important... but at the same time, some things are going to change.  While you want to know what it will cost to put a dry creekbed in the back yard, if you aren't going to do it for a few years, having a "down to the penny" estimate probably isn't terribly important.  But, if you have windows with rotted wood, knowing almost exactly what it may cost IS important... you don't want to tear out all of the windows and find out that you can't afford to replace them until next week...

As items come up for completion, be sure that the new items are going to be available.  I have been halfway through a project and found that the item I was building around was out of stock... 

the bottom line...

Do a little homework.  It can actually be a lot of fun.  If you have kids, they might really get into "designing" their own rooms.  And there is something more important.  You might find that it is cheaper and/or easier to find a home that is ready to go...  In my own household, we want more space...  As I am costing out another garage, and my wife is dreaming of a new master suite, we are thinking that maybe a new house would be better.  But... we REALLY like where we are.  We'll see what the winning plan is.  Will we buy a new house or do a big remodel?  I don't know. 

You'd think as a real estate agent that I would always say "buy a new house", but I know that reality needs a voice, too.  I don't like to move...  I shouldn't expect that you want to pack all of your stuff and move it, either.  On the flip side, I know that if you sink too much money into your home, you will never see it come back out... especially in the short term. 

Balance YOUR options. 

If you need to move... we can talk about it.

Water is essential for life.  Without it, everything dies.  But... sometimes it can be a pain in the butt... like when it is in the wrong place in the house... or outside of the house...

I have a buyer that is under contract on a beautiful home... or more accurately, a home that could be beautiful.  But it has problems.  Water. 

The biggest issue is one that people usually don't think of...

Gutters

There are several damaged gutters around the house, and some that we suspect are clogged.  Furthermore, the downspouts are in less than great condition... blocked, broken or poorly moving water away from the house.  This has led to damaged window and door frames, as the water has caused rot in several places.  It has also led to damage to carpet in the basement, erosion around the deck supports and erosion of the landscape.  

All of this is easily correctable... or at least the direct causes are easily addressed.  The damage is more involved.  in fact, we don't know how much damage there might be... we are currently dealing with contractors to see if we can get a handle on it. 

And there is another issue that people often don't think of...

Paint

As mentioned above, there are several damaged window and door frames.  While the water is the damaging agent, the reason they could be damaged is that the paint was seriously lacking.  The home is only 7 years old, but the trim hadn't been repainted, and the original paint wasn't super high quality. 

Again, the base condition is inexpensively and easily corrected, but the damage that has been caused is much more involved. 

And the last problem is another one that usually escapes notice...

Landscaping

Ok, admitedly, I'm not talking about grass here... I'm talking about landscape design.  As it stands, the ground around the home is actually channeling water TOWARDS the house rather than away.  It is a testement to excellent waterproofing by the builder in the basement that there aren't any places where water is coming in.  But there are actually places where the erosion is trying to undermine concrete slabs and footers. 

Here, the correction is a little more involved... but still not terribly difficult.  The lot will need to be re-graded with a slope away from the house.  Additionally, a swale will need to be built into the landscape design to route water coming on to the property well away from the house.  French drains will need to be installed, and the downspounts routed into them... all in an effort to move the water around the house. 

Finally, the landscape design needs to incorporate appropriate plantings and ground covers to stop the red clay from splashing up on the sides of the house.  It is likely only cosmetic, but the bottom two to six feet of the house is stained red... requiring the house to be repainted. 

When we do inspections and look at homes from potential problems, the things that usually concern buyers are systems like the HVAC and electrical, or areas like the roof or deck.  But, from this house we can see that it is VERY minor repairs and maintenance that have caused the problems.  Keeping the gutters in good repair and trim painted are both simple. 

This home hasn't had a real "owner" for a few years.  Depending on the estimates, it may soon have one.  Homes NEED people in them. 

So...

This should be a good case study in why keeping up with the little things can be very important... spending a hour cleaning out the gutters and $100 on trim paint might save $5000 in repairs later.  In this case, $1000 in gutter cleaning and trim painting may have save $15,000 or more in damage.  And the value of the home might have been $50,000 or even $100,000 higher. 

That is a solid RoI (Return on Investment). 

If you are looking for a deal, they are out there, but many "cheap" properties are actually money pits that will require way more money than they are worth.  This one should give the buyer a solid equity position when they are done.  And, as with most properties that are "deals", they require resources... money, time and skill... being invested BEFORE they return that equity. 

Call me if you want a deal in or around Gwinnett County... especially 4+ car garage homes, as well as homes in and around Lilburn. 

(I am NOT including pictures of the home because my buyers haven't closed on the property...  They are aware that I am blogging about it, but I don't want the property identified.)

There are always great things happening in Lilburn...

• September 19th, 2009 - Community Garage Sale in the Overflow Parking Lot across from the Lilburn City Park - 9am to 2pm
  
• October 10th, 2009 - Lilburn DazeFestival in the Lilburn City Park - 9am to 5pm
• October 12th, 2009 - City Council Meeting in the Auditorium at Lilburn City Hall - 7:30pm
• October 17th, 2009 - Community Garage Sale in the Overflow Parking Lot across from the Lilburn City Park - 9am to 2pm
• October 24th, 2009 - Get Fit Lilburn in Old Town Lilburn and at Lilburn City Park - 4:30pm to 8:30pm
• November 8th, 2009 - Veteran's Day Celebration in Lilburn City Park - 3pm to 5pm

For more details on what is happening in Lilburn, check out CityOfLilburn.com.  There is a registration required to set up a table in the garages sales or to have a sale booth at Lilburn Daze.