"Trying" To Sell Lake Wedowee Real Estate

Posted at 10:13 AM, Jun. 19, 2008

by: Kelly Caldwell

Have you looked at real estate in Wedowee lately? Well, let me tell you there is a lot to choose from. I looked on www.ezmls.com today and there are more than 600 listings being advertised for sale in Wedowee. I would be willing to bet more than 95 percent of those are considered lake property in some shape, form or fashion.

It seems like everyone is "trying" to sell their lake property. Now, granted some of those listings are off-water properties in waterfront areas, but good gracious that's a lot.

"Trying" is failing with honor according to a real estate guru I met at a conference in Las Vegas last year and that is exactly what is going on here. People are trying to sell property, but the prices are so high buyers aren't looking.

This isn't the fast and furious market of three years ago when seller's could name their price and a bidding war would happen. THIS IS A BUYER'S MARKET PEOPLE!!!!! Which means, if you want to sell you have to price accordingly. Most of the properties have been listed for more than a year (some two or three) and nine times out of 10 the list price hasn't adjusted.

What does this tell me? Somebody is stubborn... Not sure if its the agent, the seller or a combination of both, but one things is for sure, someone is going to get real if they want to sell any REAL ESTATE on Lake Wedowee.

While I was on the website, I looked up sold listings. The thing that amazed me was there were only 19 properties to sell this year compared to 74 properties for the same time frame a year ago. Every day a comparable sale expires and proving the worth will continue to get harder. Banks are tightening their purse strings and appraisals are getting the fine-tooth comb treatment.

So, I am sure the buyers out there are wondering what all this means to you. Well, to be honest, this lake is yours for the taking. It is time to hook up with a great "Buyer's" agent and challenge these prices. If you are ready, willing and able you might just find a great deal.

A buyer's agent is an agent that represents YOU. She is your advocate in the transaction and will fight for you every step of the way. She will also be knowledgeable about the listings on the market as well as what has sold. She will also keep you up to date on the market conditions as they change.

One thing my mom and I are going to start is the "Leisel and Kelly Hot Properties List" which can be emailed directly to you. It will contain the properties we think are the best deals currently on the market and properties that may be worth challenging.

Click here to sign up and receive Leisel & Kelly's Hot Property List

From a whisper to a scream

Posted at 8:01 AM, Sep. 27, 2007

From a whisper to a scream - September Market Update

We have talked about how things are changing on Lake Wedowee and the changes are becoming more evident. There are two dozen homes currently listed that have been reduced in price recently. Some have been drastic reductions (as much as 17 percent) while others have been a gradual decrease.

These numbers are screaming one thing at me and whispering another. On first look you would think prices are adjusting because they were too high in the first place (scream), then one could think all these people are beginning to realize their properties are not attractive to buyers (whisper).

In reality it is a mixture of both. Half of the homes have been sitting on the market for more than five months and have not been sold. Houses have been selling during this time frame, matter in fact 27 homes have sold since April 1. The kicker is the average sell price for those 27 homes is $385,266 and the current average price for the homes that have been reduced is $512,675. Again there is a scream and a whisper. The average buyer is not interested in $400,000 plus lake homes (scream), but many sellers and agents continue to list properties with over inflated prices in a market that won't support their asking prices. (whisper but becoming louder everyday).

There are many homes on this lake for sale worth more than $400,000 but the majority of the buyers are looking for less than $400,000. Actually only nine homes have sold for more than $400,000 this year compared to the 30 homes that have sold for less.

The real estate market is changing nationally and Lake Wedowee is not immune to it. The real estate frenzy of the last few years has softened. In 2005, the seller could set the price and even entertain multiple offers before it sold. That's not the case now. Homes are now sitting on the market for a longer period of time and their is a large increase in the number of homes for sale. The average number of sales (buyers) has stayed the same but we now have more builders, more developers, more agents and more sellers competing for these buyers .

Lake Wedowee has experienced a boom like other areas in the county in the last few years, many have profited over the tremendous increased values of the last few years but the past is in the past. On the national level home sale prices were down 4.3 percent in August and the home inventory is at an 18-year high. We have now hit a plateau and prices have stabilized. No more flipping properties for 50% to 100% profits but stable pricing with a slight increase in the average sales price from 2006. It is a more balanced market for buyers and sellers alike.

To sell a house in today's market, hope is not lost. Like we have said before a house is only worth what a buyer is willing to pay for it. This summer has been an interesting one in that more new homes have sold than existing. Why is this? Builders negotiate, offer buyer incentives stage the house to look its best and do whatever it takes to get it sold. Those who want or need to sell their primary home or second home need to sit up and take notice of what is selling and why. Do not leave it to chance, do your homework. You must price competitively, prepare your home for the market (make it look its best) and enlist the help of a good agent to market your property aggressively to buyers and other agents.

Word On The Street

Posted at 8:22 AM, Sep. 26, 2007

The Word On The Street...

It is a Done Deal!

by: Leisel Caldwell

If you have been following our story on the "Big" Developer coming to Lake Wedowee you will be interested to know the word on the street is... it is a done deal. We have been told by more than one source Alabama Power and "Mr. Big" have come to terms and to expect an announcement by the end of the year.

So, what does this mean for our area? If true, "Big" things are sure to come, but we all must realize the process of any major development takes time (years). Just the sheer excitement of any such announcement will have many expecting the prices to sky-rocket. I feel those who want or need to sell in the next 2 years may be disappointed with this assumption. The real estate market is driven by what the buyers are willing to pay for the available properties for sale, supply and demand. See Kelly's Market Update for more information on what the average lake buyer is currently willing to pay.

We are currently in a stabilizing market with property values holding their own, inventory of available properties climbing and the number of buyers entering our market staying at about the same number as we have seen in years past. The major jump in values we saw from 2003 - 2006 in real estate sales is not going on in the 2007 market. Yes, listing prices are continuing to escalate without rhyme or reason, but the properties that are selling are holding their own with the 2006 sales price averages.

The impact of a major multi-use development in our community will first be felt by the influx of a large number of contractors and construction workers. Rental properties will be in high demand. Sub-contractors and construction workers will have employment opportunities. More sales for restaurants, fuel providers, construction material suppliers, etc. and more sales tax will provide an economic boost for Randolph and Clay Counties. As the development progresses there will be many full time employment opportunities.

In my opinion, once the anticipated announcement is made, it will have an immediate influence on bringing more buyers to our market. Once "Mr Big" has something to sale and they begin their marketing efforts we will see major increases in the number of buyers in this market. Again, with the supply and demand, we will see large increases in values on prime waterfront property. Please note, I do not see major price changes for low and mediocre water front quality properties. They will continue to see increases but only moderately.

Our area will have a great opportunity to prosper in many ways and with such a development we should expect many changes. This developer is likely to become the largest employer for the county. Our local leaders need to embrace this new development. They need to offer a helpful hand and be open to new ideas. They also need to have a watchful eye to protect us and our assets.

We all get excited about the prospect of recruiting major industry, well folks, this is major industry.

Lake Wedowee Market Update

Posted at 7:09 AM, Jul. 26, 2007

The good news… There have been more lakefront home sales so far in 2007 than for the same period in 2006. Since May 1, 17 lakefront homes have sold on Lake Wedowee compared to 11 in 2006. However, there has been a shift in the market.

More than half of the lakefront homes sold this year have been new construction with nine selling in the last 60 days. 

The not so good news… With all the new construction, existing homes sales has plummeted in the last 60 days. Since June 1, only one existing lakefront home has sold and only four are currently under contract. 

It is hard for individuals to compete with builders. Usually the builder has more than one home under construction and therefore can “wheel and deal” a little bit more than the average home seller. Plus, home buyers typically prefer new.

However, there are ways for the individual home seller to compete with the builders. Price, of course, is the best way to compete, but there are other methods.

We are seeing more and more homes sell furnished or with other incentives such as painting allowances and dock allowances.

The bottom line is to make your property more attractive than its competition. As of July 25, there are 93 listings for lake property on www.ezMLS.com, more than half are less than two years old, 20 have been built this year. For the lake as a whole, this is a great news, new construction is good for the economy, but it gets tricky for the existing home sellers who need to sell.

A REALTOR® can help you decide the best plan for you, if you are an existing home seller. There are a variety of ways to make your home stand out not only to prospective buyers, but area real estate agents as well.

Lake Wedowee Market Update

Posted at 6:45 AM, Jun. 25, 2007

While lower lake levels may be putting a damper on fun this summer, it hasn’t hurt the inventory of homes for sale on Lake Wedowee.

As of June 21, the official first day of summer, there are 93 lake homes on the market. Considering only eight homes sold in May, we have almost a year’s worth of inventory. What does this mean? Well it depends which side of the closing table you will be sitting.

If you are a buyer, this could be a good time to do just that. More inventory means more options for you. We are hearing of all kinds of incentives being done right now. One house that is under contract, we have heard the seller is throwing in a floating dock and in the second home market it is not uncommon to purchase a home partially or fully furnished.

We have also seen houses sell for much less than asking price. In April and May, we saw two homes sell for 77 percent of the list price. However, just like the $1.25 million sale, those examples are not the norm around here. In fact, the average sale price is 94 percent of the final list price. Keep in mind those averages do not take into account price reductions.

What these numbers mean in simple terms, is that Lake Wedowee is becoming a buyer’s market instead of a seller’s market like it has been for the past few years.

If you are in the process of selling your house or are thinking of putting your home on the market, do not fear. We are actually ahead of the game if you look at last year’s numbers. Twenty lake homes sold through June 21, 2006 with a median sale price of $285,000 while this year 25 lake homes have sold in the same time frame with a median price of $304,000. The meat of the market is in the “under $500,000 price range” (60 of 93 listings and 22 of 25 sales) and that doesn’t look like it is going to change regardless of what homes are listed for.

Adjustments to price have already started on this lake, and as the season progresses, and sellers get more anxious to see results, the market will continue to fix itself.

I mentioned earlier about seller’s giving incentives to buyers some of those include: paying closing costs, leaving furniture, giving a dock allowance and even selling the boat or jet skis along with the property. Sellers are getting more and more creative these days to get the end result they desire and as your REALTOR®, it’s my job to guide you through the process from start to finish.

It takes more than putting a sign in the yard to get things sold these days, but... Hey, that conversation is for another day.

Cha-Ching... Lake Wedowee breaks million dollar mark

Posted at 2:46 PM, May. 9, 2007

Omigoodness. Lake Wedowee has done it!!!! Earlier this month (like a week ago), the million dollar glass ceiling was broken on Lake Wedowee. A house that was listed for $1.4 million in the Hunter Bend area became the highest sale to date. Congratulations to those involved (especially the seller!!!!) I never saw the house in person, but from the pictures it looked amazing.

It just goes to show you that a property is worth what a buyer is willing to pay for it...  If you want to know what we think a buyer is willing to pay for your property give Advantage Realty a call today.

Lake Wedowee Market Update

Posted at 10:29 AM, Apr. 30, 2007

Lake prices escalate dramatically for 3rd straight year

By: Kelly Caldwell

T

he real estate market on Lake Wedowee constantly changes with new homes sales recorded every day. Considering Alabama Power Company owns between 65 to 75 percent of the 272 miles of shoreline, there is only a limited supply available for individual owners and prices have escalated dramatically in recent years.

In 2005, only one home sold for more than $500,000 and just a year later six homes sold for more than that. To date, the most a home sold for has been $875,000*, and now in the first five months of the new year 26 homes are advertised for more than $500,000 with five homes listed for more than $1 million.

Does this mean Lake Wedowee is pricing itself out of attracting the average second-home buyer? Not necessarily. While extremes are out there, the average selling price for a home on Lake Wedowee last year was $318,784 with the lowest sale recorded at $132,500 compared to $287,028 and $128,000, respectively, in 2005.

From a seller’s prospective, this is excellent news. Most know that real estate rarely depreciates in value, it just appreciates at different rates depending on what is happening.

The National Association of Realtors reports the national median existing-home price increased 12.7 percent in 2005 and on Lake Wedowee, the existing-home price increased 10 percent in 2006 based on documented sales*. Since record keeping began in 1968, the national median home price has risen every year, even during recessions and periods of sales decline. Typically, in a balanced market, home values rise at the general rate of inflation plus 1.5 percentage points.

However, there is an interesting statistic to consider in the early months of 2007. Currently there are 81 waterfront homes advertised on ezMLS.com (the main advertising body for Lake Wedowee) with 46 of those coming on the market this year. The average price is $475,400 ($389,900 median) which is quite a leap from the average list price of $337,340 ($328,500 median) from a year ago. Matter in fact it is a 40 percent increase. While this seems like fantastic news for this area, it might not be. It is true there are some extraordinary homes advertised for sale, but are those price tags realistic? Considering only 14 waterfront homes have sold in 2007 (compared to 18 in the same time frame a year ago) it makes me wonder if the market is slowing a little bit. The peak season for waterfront home sales is May through September and it will be interesting to see how buyers react to the current prices of waterfront homes on Lake Wedowee.

*The figures in this report are based on information obtained through www.ezMLS.com, this is just an average and does not include homes sold by owner or other home sales not reported by real estate agents or builders. Randolph County does not have a multiple listing service at this time.

To learnmore about the lake market go to www.RandolphCountyGrapevine.com

Randolph County Housing Statistics 2007

Posted at 10:18 AM, Apr. 30, 2007

Click on graph to make larger.  

Alabama Housing Statistics

 As reported by The Alabama Real Estate Research and Education Center

 Existing home sales in Alabama increased in February 2007 by 14.7 percent to reach 4,069 units sold. Existing home prices also rose in February to $155,632, an increase of 3.3 percent from January. There were 36,702 homes listed on the market in February, representing a 9.0 month supply of homes in Alabama. To learn more visit: http://www.arerec.cba.ua.edu/Housing%20Stats/stats_index.htm

In Randolph County there were 159 homes listed in March representing  a 14 month supply of homes.

The Market...As I see it! March 2006

Posted at 11:59 AM, Mar. 9, 2006

By Leisel Caldwell

March 2006

With the reported sales of January and February, 2006 is to be a banner year for real estate in Randolph County. From discussions with area agents, everyone is busy. All seem to have many good buyer leads, showing properties, writing offers and closing deals. The diverse Randolph County market includes the small towns of Roanoke, Wedowee, Wadley and Woodland, the rural land market and the dynamic Lake Wedowee market.

Roanoke and the other small towns in the county offer some of the best housing bargains in the state. With the low prices and excellent loan programs for home buyers, buyers are allowed to purchase a  home with very low down payments and  low monthly payments, making home ownership obtainable for most everyone. The downside for the small (in) town markets is seeing little or no growth and very little appreciation in values.

The rural market for homes with land and vacant land in Randolph County is growing. We have seen many sales and a good appreciation of values in the last several years. This market is being driven by Georgia buyers who are crossing the state line. They are seeking refuge from the rapid growth in Georgia, high taxes and high land prices.

The Lake Wedowee market with its limited supply of listings is commanding higher and higher prices. Good buildable lake lots are at a premium. Re-sales are at an all time high with several houses selling in excess of $500,000 in the last 90 days. Many sellers, developers, builders and agents are testing the market. They are putting properties on the market way above market value by standard pricing practices. Is this a bad thing? It depends. A property is worth no more than a buyer is willing to pay for it. Are there enough buyers in the Lake Wedowee market willing to pay these increased values? Only time will tell.

Leisel Caldwell has more than 25 years experience in real estate in Randolph County.