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07 Saturday Dec 2013

Posted by Mary Anne Walser, REALTOR in real estate

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The Real Estate Times, they are A’Changing

 

Does the real estate market’s positive shift this Fall signal more great times ahead?  Or is this a temporary positive blip?  I believe that the recovery will continue into next year, and that the bust is over. 

 

In fact, the third quarter of 2013 gave us lots of positive momentum that has and should continue.  While December is typically a slow month we are still seeing the best properties sell quickly with multiple offers.

 

The best strategy for sellers now and for the year to come is to choose an initial listing price that is aggressive enough to compare very favorably with competing listings.  A home needs to be the best option in the price range in order to sell quickly.  Strategizing in this way brings into play the “scarcity fear” – meaning buyers will see the home as a scarce commodity in the price range and will move quickly and be willing to pay more.  Buyers, in other words, will be afraid that someone else will snatch up the home first.  This is exactly what a seller should want.  A seller who overprices in the beginning loses that buyer urgency.  The longer a home sits on the market, the less a buyer thinks it is worth.  Therefore, paradoxically, a seller who prices less from the beginning will net more than the seller who starts out high and has to price reduce thereafter. 

 

The good market for sellers that we are seeing now is due to the fact that the downward price pressure from distressed properties has alleviated.  For several years, the number of foreclosures and short sales have brought all prices down.  Now, however, we are seeing much fewer distressed properties on the market and overall lower inventory, so this is the best time to sell that we have seen in years.    While the market may be even better in the Spring, sellers who list NOW have the added advantage of the low inventory of homes available over the holidays.  If a seller waits until the Spring, they will be competing with many more homes.  A buyer looking right now has little to choose from, and this can mean a higher price for a seller who acts strategically.  The following chart shows the severe decline in listing inventory.

 

Image 

 

Even though there are fewer properties in general, and significantly fewer distressed properties on the market currently, they still have an impact on a sellers’ ability to get top dollar.  When setting an initial list price, take into account how many distress properties you will be competing with.  This can vary greatly from area to area, so it is hard to provide generalized advice about the impact on pricing.   The following chart shows the decline in the number of distressed properties for sale; but note that there ARE still a number of distressed properties out there.

 

 

 Image

 

 

 

For Buyers, it is important to understand that the supply/demand relationship has shifted to the seller’s advantage. Now, fast action and realistic offers will be necessary for buyers to capitalize on still-low prices for many available properties. Low-ball offers on properties that are already well priced will result in missing out on a great opportunity.  In other words, our low inventory of homes for sale and the fact that prices are still low in a historic sense reduces the buyer’s advantage in contract negotiations.   Making realistic offers is a must for desirable houses.

 

Overall, the good news is that prices are still historically low and interest rates are too, but inventory is ALSO low and prices and interest rates are rising.  This Spring will see an uptick in activity, with rising inventory, prices, and probably also interest rates.  

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What is “Midcentury Modern”?

03 Wednesday Aug 2011

Posted by Mary Anne Walser, REALTOR in real estate

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Tags

architecture, atlanta, home, house, real estate, realtor

A popular housing description these days is the term “midcentury modern” – but what does that mean?  Basically, a midcentury modern home is a 1950s or 60s ranch that has been “modernized” into a more contemporary home in some way.  Usually at a minimum the term implies that the home has been opened up-that walls have removed so that the floor plan is more “open”. 

On the exterior, the sleek horizontal lines of these homes are reminiscent of the work of Frank Lloyd Wright. Think of his masterpiece Fallingwater-the eye is drawn side to side rather than up.  It is a style more of the earth than of the sky.  Specific external elements can emphasize this.  In this Atlanta midcentury modern at 1931 Dellwood Drive in Collier Hills, slender horizontal wood slats offer privacy for the patio they hide but also serve as a design element.

During the time period when ranches were built, gravel beds were also popular.  At Dellwood, the owner added this easy maintenance landscaping bed at the home’s entrance to add to the vintage feel. One distinguishing feature found in some, not all, midcentury modern homes is the carport attached to the front of the home-side entry, for a more uniform “face” towards the street.

Midcentury moderns are almost always brick-the predominant building material for ranch houses in the South at that time.  Painting the brick can further the modern feel-or, if combined with other classic elements such as columns, result in a mid century classic home.

On the interior, typically ceilings are low, typical of the period, but any popcorn texturing is removed to further advance the “sleek” and modern feel.  Here at the Dellwood property the homeowner chooses a monochromatic color scheme with “pops” of color.  Modern implies minimalistic, so the basic colors are neutral, but modern style is also “fun” – popular color accents are orange-red, green, and bright blue.

The kitchen is often modernized also- for a low budget redo, painting the cabinets a glossy white and replacing the hardware with more modern pulls and replacing linoleum with silestone, granite or corian will do.  While when built, these kitchens were typically contained, in the midcentury modern style at least one wall is opened up to the living area.

Midcentury moderns are one story dwellings.  The ranch style was designed to be the perfect melding of easy living with inexpensive construction in an era when land was cheaper than it is today.  Today, a large part of the cost of a home is the land on which it sits.  (The simplified builder’s equation is that the lot should be one third of the final selling price for the home-such that a builder might expect to pay $500,000 for the lot on which she builds a $1.5 million dollar home).  So most new homes today are at least two stories, taking full advantage of the size of the lot. 

Ranch homes were built for the post-war homebuyers eager to nest.  In 1945 millions of American soldiers returned from the war to find the biggest housing shortage theUShas known.  Ranch homes were inexpensive to build and served the needs of these new homebuyers well.

Tastes then were undoubtedly different than they are for us today-beautiful hardwood floors were covered with carpet.  It’s not unusual to find ranch homes where that is still the case, but as ranches are virtually all now in the hands of a new generation of buyers, carpet covering hardwoods is the exception rather than the rule, and these younger buyers have adapted the style to fit their tastes.

Midcentury homes-some modern, some classic, some retro- are ubiquitous in many parts ofAtlanta.  In some neighborhoods, likeAshfordPark, many of them have been torn down to make way for newer, larger homes.  In Buckhead, a fully renovated midcentury modern can go for more than $500,000. 

This one is onDellwood Drivein Collier Hills.  The street is somewhat of an anamoly-most of Collier Hills consists of older 1920-1930s cottages, but this street was built in the 1950s.  This home was originally built as a triplex-the upstairs was two units that have now been opened up into one large space.  There’s still a separate rentable apartment downstairs.

As with any housing descriptive term, there’s no way to define definitively what “midcentury modern” means, as it means different things to different people.  But the homes that have become midcentury modern show that a classic style such as the ranch, with a few adaptations, can still meet the needs of a new generation of homebuyers.

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Mary Anne Walser, Realtor & Licensed Attorney

Keller Williams Realty
3650 Habersham Rd.
Atlanta, GA 30305
404-277-3527

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