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“Stay Alive as Long as You Live”

July 7, 2011 by classiccityguide

“Stay alive as long as you live”

  J.W. Fanning

 Bloggers are an interesting bunch.  Correction: GOOD bloggers are an interesting bunch.  They post regularly, often for years, even when no one is reading.  They just keep going. But here’s the thing: some of the busiest folks I know still carve out time to blog.  My sister is a classic example. Check her our out at The Blog That Ate Manhattan.    She is a physician in NYC and she is also affiliated with a med school there.  She runs a busy practice, does research and publishing, raises two kids, and seems to post weekly two to three times.  Add to this the fact that we lost mom in December and our sister Frannie in May and one could understand a lapse.  That was my excuse, anyway.  The last year has been a blur for our family. And the RE biz for me has been as all-consuming as ever.  Excuses. Sister Peggy is my new inspiration.

My Last Post was in March 2010. Here’s a Random Recall of last 16 Months:

I’ve had probably close to 50 closings since my last post.  That is 50 transactions, each with their own unique challenges, sets of buyers/sellers, inspections, reviews, revisits with contractors, lenders, appraisals, rounds and rounds of negotiations, walk-throughs, closing table pageantry, hugs, and the occasional tears.  Bills, Fees, License Renewal Classes! To say we age in dog years in this business is not complete hyperbole.

I won Best Realtor 2010 in Athens in the Athens Banner Herald’s “Readers’ Choice Awards!” I finished 2010 as the  #2 agent in our office, the largest firm in the Athens area, and I reached the Circle of Distinction in our local association of realtors. Also was awarded a President’s Circle Plaque by Coldwell Banker Corporate (still not sure what that indicated but I was happy).

Last time I posted, the majority of the market was dominated by homes sales in the 100k to 200k range.  Now it is driven by the 30k to 120k range.  However, the over 200k market is decidedly busier than last year and the luxury home market (400k+) has gotten a bit unstuck (mostly in Oconee County).

 

Foreclosures have continued coming but it’s a bit better here than nationally.  The cumulative and evolving effects are rapidly becoming clearer.  Over a million last year and a million more coming.  HUD owned houses are popping up everywhere (There’s an app for that!), and word on the street is it is going to take 20 more years to sort that all out. Cash buyers are descending on distressed properties, and who wouldn’t? Deals are crazy! A 3/2 four-side brick for 59k?  25 Condos on ATL HGWY for 17k a unit? Almost fully rented? Are you kidding me? Talk about cash on cash return! Speculative builders are snatching up developed lots at fire sale prices (more on that in another post). Fully a 1/3 of the nation’s RE transactions have been cash purchases, and their still coming…

 

Interest rates continue to be at staggeringly affordable levels right now.  Money has never been cheaper for as long! Ironically, buyers have never been more hesitant to pull the trigger on purchasing.  Lenders are treating even the best buyers like they just got out of prison for embezzlement, but dealing with their requirements is a small price to pay for taking advantage of cheap money and cheap home prices. 

And…the real estate profession continues to surprise and awe. It is a good feeling to be part of  and successful in a real estate market that continues to challenge resolve and steadfastness. This is a ride you can’t jump off once you choose to jump on, I’ll tell you that.  What’s the poker term, All In?  I will refrain from any DNA analogies but RE seems to be in one’s fiber after a while…and that’s fine with me.

 

“Pluck the thistle of doubt and plant in deep and fertile ground the rose of hope.” J.W. Fanning

Posted in buyers, foreclosures, Joe's Posts, Mortgages and Loans, sellers | Leave a Comment »

Septic Systems in Foreclosed Properties: Definitely Cause for Inquiry

March 22, 2010 by classiccityguide

I will make this one short since it is really a footnote for the last post.  In a nutshell: If you are buying a foreclosure, make sure you have some type of inspection period (banks and the feds usually grant you about 5 days…short but doable if you move quickly to do you due diligence).  During this period, GET THE SEPTIC SYSTEM INSPECTED! This service usually requires a system pumping in order to take a good look at it, and if you end up not buying it, then the seller just got a free service from you, but it is worth the 250.00 or so (Athens, GA prices) to have the inspection done.  Don’t make the assumption that because the foreclosure is a newer house that the septic system is probably fine.  My septic guy (yes, I have a septic guy…) told me recently of a new system in which the leach lines were never installed.  Just a big cauldron of poop under ground.  Mmmm…  Anyway, new houses can have failing systems just as easily as older houses, especially in ATH area after the tremendous amount of rain we had last year.  Finally, there are many reasons that owners get foreclosed upon, so I do not want the next statement to be taken the wrong way, but I will say it anyway.  Some people should never have been allowed to purchase a home with someone else’s money, and these buyers knew it from the start.  They never took care of their homes, and totally trashed them from the day they entered the place.  How else do you explain the absolute digusting/horrible state of a two to three year old home?  Logically extend this reality to the septic system, and just imagine what the state if it could be.  Enough said…JP

Posted in buyers, foreclosures, home inspections, Joe's Posts | Leave a Comment »

You’ve Got Mail! Life on the Edge of the RE Market

February 5, 2010 by classiccityguide

The following is an email exchange between a client and me this morning.  It seems that so much of what we are doing as realtors these days is anything but routine, and every email, telephone call, market analysis, etc., seems to have so much more riding on it than in the past.  Not to say that your RE investment was less important back when, but bottom lines and the frenzy associated with buying and selling seems to have become normalized.  It’s anyone’s guess what is going to happen when the cast comes off this broken leg of a market on April 30th.  Currently, this business is short on joy and long on anxiety for all involved.  As always, though, there is a market (I closed just under 40 units last year), and you need to be following a plan, which includes working with honest, forthright and intelligent professionals, understanding your market area, and being objective/realistic about your personal home that you want to sell.  And PLEASE don’t shoot the messenger.

 Names have been changed for privacy

 Dear Joe:

Busy working on the house. Xxxx xxxxxx is to come next Monday to do some of the repairs. Hopefully xxxx will be here next week or week after to get the high painting done. xxxx’s been working on the main living area, and it looks a lot better. Meanwhile, we’re throwing things away!

 Got the official offer for the job, and awaiting the paper from personnel. Moving along.

We noticed today two houses newly listed on our street. Your agency has 1234 Xxxx Drive listed (next house down from us) now. Xxxx Real Estate has a house up at the top of the street that was listed for a while last fall. Can you look those up and see the details?

I’d like to have some of the work done before we have you back out so you can give us more feedback at that point on what needs still to be done. We can sign paperwork whenever you want.

Xxx

—————————

Hi Xxx.

 I kind of thought you would get the job you were going after.  Congratulations! 

I will send you an email from our local MLS, and it will contain a link to the information and “slide shows” for all the listings, old and new, in your neighborhood.  This should catch you up on what is on the market there.  I am beginning to see what I predicted earlier in the winter: an earlier buying season is rocking and rolling already (busier by the day), and lots of much nicer product for buyers to choose from compared to last year is hitting market as proud homeowners, who refused to be insulted by low offers last year, are now going ahead with listing this year out of necessity, desire, willingness to sell for less since there is a repeat buyer tax credit, etc.  I would definitely shoot for a March 1st listing date, giving you two months to expose the house to the Pre-Tax-Credit Expiration Buying Rush ending April 30th. 

Average days on market in the ATH area is about 180 days, believe it or not, so initial pricing is rapidly becoming hyper-critical.

Many sellers start high to “test” the market, something I encourage in many case, but I do not know if that wisdom applies to this current market.  I understand the concept of not wanting to give money away, but the risk/reward component can’t be ignored at this point.  Starting lower than the “top end” makes sellers fear that would just result in a lower offer, which it will, but you do not have to accept it.  A lower starting price truly merely changes your negotiating strategy when an offer does come in.  You don’t have that extra wiggle room, but I can explain that to any agent who submits an offer.  You definitely want to make sure that whatever your bottom line is, be sure to leave room to contribute to buyer’s closing costs (typically 3-4% of sales price).  Not suggesting you start at 3-4% below bottom line right off the bat, but when we meet to list the property, we can discuss a strategy for what you will do if the property is not getting offers.  More on that later when we meet again. 

Keep me posted, and let me know when you need me out for a final punch-list walk through.  Looking forward to seeing you two again. 

Best.

Joe P.

Posted in buyers, Joe's Posts, sellers | Leave a Comment »

What You Need to Know Before Buying or Selling a Home with a Septic System. Part 1 of 2

January 27, 2010 by classiccityguide

I have been talking septic systems a lot lately, and I think I know a thing or two about them. Not how they work, but how to “deal” with them when negotiating a RE transaction. Septic Systems are quite a topic these days. With all the rain we’ve had lately, a number of dormant septic system problems have come to the surface, literally and figuratively. Old and new, there have been problems, and this is what you need to know.

Buyers:

If you are negotiating to purchase a property served by a septic system, make sure your special stipulations require a “clean” septic letter from the seller. What this means is that a professional septic service provider will pump the septic holding tank, inspect the system, and complete any necessary repairs prior to issuing a letter. Basic services run anywhere between 250.00-500.00 minimum, depending on the system’s size. A perfectly running system just requires a pump and inspection for a letter to be issued.

But here’s the kicker: If the seller agrees to deliver a clean letter, this means that whatever needs to be done to have the system functioning properly will be at the expense of the seller. The clean letter stipulation demands it (seller beware!). This is a very big deal, buyer, so don’t back off this stipulation unless you are willing to pay out of pocket during your due diligence period to have the system pumped and inspected. If you find concerns at that point, the contractor can’t issue a clean letter until the concerns are addressed. And if the contractor is already on site for the day, it is kind of hard to whip up right then and there an amendment to address concerns to determine if the seller will make any required repairs. See? Just have the seller deal with the whole thing.

If the seller balks at the prospect of paying for a clean letter and swears the system is just fine, one thing you could do is tell them you will pay for the basic service and the seller pays above and beyond for any required repairs. Who wants to buy a house where the plumbing ain’t workin’? And finally, the biggest component to this process is making sure you stipulate who is going to do the septic servicing. This is key! I could find you a number of septic companies who would issue a clean letter on a system that needs replacing. Your honest and well-connected realtor will help you there. DO NOT LET THE SELLER PICK THE SEPTIC COMPANY!

And for you, Sellers…

If you didn’t read above because you are a seller, not a buyer, stop now and read above. Be very cautious about agreeing to a septic letter stipulation. You may not fully understand what you are getting into. I have had seller clients say, “No problem, I’ll do a septic letter…they’re only a couple hundred bucks.” Perhaps. But if you agree to it, and the system is not properly functioning, you could be on the hook for 35 times that couple hundred bucks. No kidding. If you want to work with the buyer in this, just be careful how you approach this stipulation by writing in any counteroffer that you agree to have the system serviced up to a certain amount and no farther. If concerns are discovered during the inspection, make sure all relevant parties are available/on-call that day for a quick round of negotiating, if needed. Where do you go in that negotiation process and how do you keep the deal going? Ask your experienced, savvy realtor to dig you out. That is where we earn our money, by keeping you from spending all of yours. Finally, DO NOT JUST AGREE TO THE BUYERS SEPTIC PROVDIER CHOICE. Make sure it is a reputable firm.

Next Post: Septic Systems in the Foreclosed Home

Posted in buyers, home inspections, Joe's Posts, sellers | 4 Comments »

Yes, Virginia, There is a Buying Season…And It’s Here!

December 18, 2009 by classiccityguide

Holy Cow!  The sun is out! A friend who recently moved here from Seattle to escape the gloomy weather now fears he may have brought it with him.  No kidding, we’ve had 56 inches of rain so far this year, and I can’t believe this next line, but it is apparently not even a record.  I think the 19 inches in October was a record, though.

But yes, now the sun is shining, and I am set up here at Two Story Coffee in 5 Points, positioned in the upstairs room with the most Eastern exposure and Vitamin S is finally bathing me after what seems like many many weeks/months of really dreary weather.  Seems too like we realtors were beginning to worry about the long term effect of drought on our business.  Goes to show you never can tell.

The sun and numerous listing appointments so far this week have me thinking about the impending (looming?) buying season and what is in store for you the seller/buyer and me the realtor.  I have all kinds of predictions, based on all kinds of anecdotes, facts, gut feelings, etc.  Here are some:

  • The buying season will begin early this year due to the unusual deadline on the first time homebuyer tax credit extension.  By early I mean there will be no down season, as right now is traditionally considered.  December closings are already up and I am confident the first quarter will be busier than last year.
  • The pent up demand to sell will result in more and better housing stock on the market this Spring over last Spring.  Many homeowners, who really took care of their homes and improved them during ownership, held off on marketing their properties last year because they didn’t want to be subjected to low ball offers, and rightfully so.  They didn’t work all those weekends and spend all that money to then bring their checkbooks to closing.  Likely, they need to sell more now than last year, and the new $6500.00 tax credit for repeat buyers is certainly going to be rationalized by many sellers as a way to make up on the back end for any potential/slight slight loss on the front end.
  • Proactive sellers will begin marketing their properties early this year, like in January.  If you miss the boat on moving your property this year, there is no telling how much longer you will be holding it.  By February, there will be a scrambling by those sellers who realize that the year keeps moving forward even though they are still saying Happy New Year to folks.  If you wait any longer, your place better be good and ready for the market.
  • Those sellers with reasonably priced, solid, well-maintained homes in good neighborhoods will see multiple offers this season, especially early on. The volume of good housing stock just wasn’t out there last year, and this created a pent up buyer demand. Those buyers shopped and shopped only to head to the sidelines and rent for the year.  They will be back out in force this year, especially after they see the sheer volume of good housing stock out there.
  • Prices will be lower than most sellers will want to realize.  But there will be offers!  Don’t be surprised when you get an offer in the 80-85% of listing range on what you think is an already well priced home.  IT’S GOING TO HAPPEN.  In the old days that was called a low ball offer.  Now we have a new name for it: it’s called an offer.  A good agent will weed out the serious buyers just testing the waters before going up in price verses the not so serious buyers engaging in folly, dragging you through the mud in the process.

DISCLAIMER

(You knew one had to be coming)

The unpredictable economic situation in the nation and in the Athens Regional Area, specifically, will be a great big X factor in this coming year’s real estate market.  The predictions I just made could be completely off.  About 2 years ago, I predicted a 6-7% drop in home values in the ATH area, and I was way way off, unfortunately.  I actually thought we had bottomed out a while back!  Jeez.  However, a 15-20% reduction in value in many areas around here is not uncommon at this point (thanks in part to foreclosures).  Some areas have held more firm while others have softened like putty in a warm hand…

More Later…

Posted in buyers, Joe's Posts, sellers, taxes | Leave a Comment »

What Does a Tax Credit Extension Mean for The Athens, GA Real Estate Market?

November 4, 2009 by classiccityguide

joe_polaneczky3Hi All.   

Please see this link for up to date info on extending the first time homebuyer tax credit.  It’s not a done deal, but it looks promising.  The proposed legislation would include repeat buyers, and this addition will surely result in better housing stock to choose from (Ask any realtor, and they will tell you about the shallow pool of good housing stock out there, especially in the 100-200 range in Clarke and Oconee Counties).  I also think this means the traditional buying season will open earlier, so to speak, since the deadlines say you must be under contract by April 30th and closed no later than June 30th.  Yikes!  

The buying season in Athens, GA regional area typically really gets cranking in February, so in this case you may want to start your hunt during the holidays or at least use the holidays to get your financing ducks in a row.  Make a plan.  Be ready to pounce when the right house comes along because if you found it, so did four other buyers just like you.  We might even see an attendant modest bump in home prices along the way.  I am guessing a slew of listings will hit early Jan instead of February or March.  Let’s hope the interest rates continue to hold low. 

If you are selling a home in the Athens, GA area, get your home ready right now.  Don’t wait.  Don’t know what to do to get started?  Contact a realtor to help you figure things out.  He/She should be able to give you an indication of potential sale ranges if you a) do nothing to your house b) do a little to your house c) do a lot to your house.  If you end up deciding to do more extensive work like replacing that aging roof or HVAC system and water heater, you will need that time as well.  I will post later this week about the things that really help an older home sell in this area. 

Posted in buyers, Joe's Posts, sellers, taxes | Leave a Comment »

Hey, All!

October 31, 2009 by classiccityguide

Joe_Polaneczky

Man, it has been a long time since my last post, so long in fact that I failed to update my credit card info or failed to confirm something with my blog provider, and offline it went! But I have an excuse: I’m a busy guy. Very very busy. With a part time assistant, I am still pretty much chief cook and bottle washer most days. And my work day never really finishes; rather, it stops, and this 41 year-old old dog picks up right where he left off the day before. By the way, I love practically every minute of it. I often wonder when I am going to tire of this wild ride of a business, but I never do. I think my myriad careers/jobs over the years have all been prologue to my arrival at a point where my interests meld into one exceedingly strange yet rewarding work life. It doesn’t feel like work anymore; It’s just life. Cool…

And as I made my way to Jittery Joe’s this morning for an incredibly long overdue stopping to take stock, I began to think about all the excuses for why I haven’t blogged, excuses that would make my shallow pool of readers forgive me and maybe return to check in from time to time as they once did. And it dawned on me! In the business I am in, the question should not be “What’s your excuse for not blogging more often?” Rather, the question should be “What’s your excuse for blogging so often?” Successful realtors work all the time (easy money, you say?), so if you are not filling the other time with family and friends, which we all do because realtors also tend to be social, then lots of attention to one’s blog can only mean one thing: You ain’t hustling for your current clients, you’re hustling for your next clients.

I’ve been hustling for my clients and a funny thing happens when you hustle for your clients. Their friends call you. Their parents call you. Their cousin or colleague calls you. Suddenly, blogging seems like going golfing when you should be in the office or out in the field. I know online marketing is the wave, right, but the old political adage about all politics being local applies to real estate too. And shouldn’t blogs by definition be somewhat more personal? To use blogs to tout how great you are in business kind of seems smarmy to me, yet I was guilty of this, but no longer.

If you need a job done, give it to a busy person.
The other kind of person has not the time…

Forgot where I read this, but this counter-intuitive statement rings so true.  I am a busy man, yet my clients are the true beneficiaries of my busyness.  As for blogging, if I blogged as much as I think I should to have a good blog, I’d probably have not the time to serve the sheer volume of awesome Athenians and incoming Athenians I meet and serve on a daily basis (not to mention I’d be a really lousy parent, husband, friend, and community participant). 

If you want to learn a little here and there about the ATH area market, Athens culture, etc., check in from time to time.  I am not promising to be super-post man because I tried that already.  But I am worth a bookmark at least, right?  And when you want a hustler in your corner, call me, because I am a busy person, and we get it done  That’s the only marketing you will ever read here again.  I like blogging, but I think I have a new and healthier take on it.  What it will look like remains to be seen.  I will still have my archives, and there is definitely useful info in there along with the drivel.

For now, my coffee is done, it’s getting light out, and my phone is about to heat up.  Happy Friday!  Happy Halloween!  Go Dawgs!  Everyone be safe on your drive down and back to Florida.  I’d be there, but I have not the time…

JP

Posted in Blogging is fun, buyers, Joe's Posts, sellers | Leave a Comment »

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