Buying a Home in Coastal Georgia? Here’s How to Get a Good Deal

Are you going to be buying a home?  Your timing is impeccable!  There are more listings than ever before and lots of motivated sellers.  Here are some tips to help you find the best buy.

(1)  Go to a local Bank or Mortgage Lender to start your application.  This accomplishes two things.  The lender will tell you that you can obtain a loan and she or he will establish your price range.  If you are new to the area, call or email me and I will give you some recommendations for lenders and points of contact.  Use a local lender.  It is hard to reach some underwriter in Denver when you are supposed to close the next day!  If he or she is in Brunswick, you can go stand on their desk to demand information.

(2) Search the local MLS — http://brunswick.1st-place.com  — in your price range and $15,000 higher.  In this market, you may be able to negotiate some of these higher priced properties into your price range.  Learn what is on the market.  There is a link on my web site that will take you to the local MLS.  You might even drive to some of the neighborhoods that look appealing to you.  If schools are important, go to www.schoolmatters.com to check out the Glynn County system.

(3) Describe to your agent your ideal home or condo and your price range.  Let them know the areas that you favor.   Ask them for print outs on homes matching your description and price range.   Your agent will have more details on homes than you are able to see on the public side of the MLS.

(4) Have your agent set up some showings to see your favorites.  Ask to see no more than 6 homes per day.  Any more and they will all blend together in your mind.  Take notes at each showing and use your digital camera to help you remember the homes.   Try to develop a “top 3″ list of homes you would like to buy.  Remember, no home is perfect.  But, you can try to find the one that has the most positive aspects for you and your family.

(5) Now it is time to prepare your offer.  Ask your agent to run a comparative market analysis on recent sales of homes similar to the one you want to purchase.  This will give you a price range to negotiate for in purchasing the home.  Not all agents are adept at comparative market analysis.  So ask your agent to show you the analysis and explain how he or she identified the price range.

(6) Your offer “strategy” should be to negotiate into the price range defined by the recent sales.  One word of caution.  If you really love the home and no other will do, tell the agent to make a full price or close to full price offer.  In this case, you don’t want to be negotiating for lower while some other buyer comes along and takes the home off the market.  Otherwise, offer a price near the range.  Terms are important too.  If you are offering “all cash at closing,”  close in 2 weeks, a large amount of Earnest Money, and “as is,” the Seller is more likely to accept a lower price.  But, if your terms are contingent on your home selling, 45 days to close, a rigerous home inspection, closing costs, home warranty, and throw in the stainless steel refrigerator and the living room furniture . . . ,  you will have to go higher in price!

(7) If you are successful, congratulations!  If the Seller is oblivious to what homes are selling for and will not negotiate lower (even after your agent shows the listing agent the comparative market analysis), go make an offer on home number 2.

This is a fantastic time for purchasing a home.  Hopefully, these tips will help you get what you want at a reasonable price.

The Golden Isles of Georgia — Lots of Listings, Few Buyers, Slow Start for 2007 (as of 2/05/2007)

The Golden Isles (Brunswick, GA area) did well in 2006 relative to other parts of the country.  Home sales were up 8.5% and average home prices rose 7.3%.   Nationally, existing home sales fell 8.4% and the median price of an existing home ($220,000) did not change from December 2006 compared to 2005 according to the National Association of Realtors. 

Thus far in 2007, we are off to a slow start for what we predict will be another record year for real estate in the Golden Isles.    Our market is really two markets.  Saint Simons Island is a resort location influenced by vacation and second home buyers and sellers and retirees.  Across the causeway in the “mainland,” we have a “real life” market (people transferring in and out for jobs, home owners moving up to larger, newer homes, or homeowners downsizing to smaller homes or condominiums).

Saint Simons Island experienced a “boom” in mid-2005 and home and condo prices skyrocketed.  Sellers have been reluctant to back off prices and Buyers don’t want to pay the high prices for what they perceive is inflated value.  Accordingly, home and condo listings have gone from around 360 total listings to 660.   As of this date (02/05/2007), 16 of 667 listings have gone under contract in the last 30 days.  Breaking this down further, 9 of 387 homes listed on Saint Simons Island have gone under contract within the last 30 days.   Seven of 280 condos have gone under contract within the last 30 days from 02/05/2007.  Based on sales for the last 12 months, Saint Simons has a home inventory of 12.6 months and a condo inventory of 15.6 months.

The mainland experienced a small increase in prices in mid- 2006.  Sales cooled for the latter half of 2006.  Currently, the average inventory of homes in Glynn County is a manageable 6.5 months.

We expect the “mainland” will become a balanced (Buyers and Sellers) market in the 3rd quarter of 2007.  In our view, the high inventories of listings on Saint Simons Island will not clear until 2008, leaving this a Buyers market for 2007.

For the next three to five months, Buyer swill be able to take advantage of great buys in the Golden Isles of Georgia.  Interest rates remain low.  There are many listings — more homes and condos are on the market than ever before.  Owners who must sell are wheeling and dealing to sell their homes.  Buyers can negotiate great prices and favorable terms.  And if the negotations turn sour, Buyers can move on to their next favorite home or condo since there are lots of listings to choose from.