Charlie Ragonesi Big Canoe Realestate's Blog: December 2007

I recently attended a local meeting of our board of Realtors. Our board does a lot of good work. The guest speaker was a minister who runs an out reach program. Very good stuff and we all contribute. In her speech she mentioned that ,"she didn't know what the million dollar club was but wanted to be a member." She said it rather tongue and cheek but in the back of her mind I knew she was thinking that there were folks in the room that made a million dollars.

Now I live in a county and am in a surrounding area where the average price for a home is around 130,000. So if there are folks walking around in my board making a million bucks in commission  then I am going to stalk them and learn their secrets.

What was important was I learned about how we are perceived. Even with NAR and all the work we do our perception is still not that good. I cringe every time I watch HGTV and see the lady Realtor with the shades and fur coat saying this deal is done. That's is how we are viewed. I even went to a meeting where the speaker a Realtor, was talking and said, "Well if your a Realtor and drive a Sonata what does that say about you?" Hey guess what at the time I was driving a Sonata. It was brand new and looked great. Then I had a client who has bought a bunch of stuff from me say "I wonder how many deals you lost driving that Sonata!!!!"

I really get frustrated about this. Should I drive a Mercedes and be part of a stereotype that makes people say , Oh there goes one of those rich Realtors" or should I drive a nice well appointed Car. The car is just one point. IN 2008 I will continue to be who I am and change minds one deal at a time.

Oh by the way I am now driving a 4 wheel drive Xterra as I work in the Mountains. It is the off road version. Now people complain about getting in and out as it is a little high off the ground.

Happy New Year  

Hey it is inevitable. It is the time of year we look ahead. Here is how I see the year shaping up

1 It is an election year. Elections bring about uncertainty. When we have uncertainty people tend to stay on the couch. Just look at this year. The uncertainty the press in part created  made many fear about the housing Market. So I think the election will be a drag on the market maybe in the late summer months.

2 We see more and more folks buying tracts of land. I think this is an indicator that the smart money expects a rebound in the market and they are buying up land at good prices with the notion of building later.

3 We have 75 million baby boomer's retiring. Not all next year of course. But as they retire and move to be closer to a loved one or downsize I think activity will be created in markets. I think popular destinations will be active. More so than they were this year.

4 The mortgage situation which is really now an issue of institutional liquidity has not played itself out. Remember in an earlier blog I noted the 5 banks that had 5 million dollars in assets but really only 1 million dollars in cash. So if there is any kind of rumbling we may have some issues to face. Jumbos still remain at a higher rate in part in  my opinion due to the amount of cash needed to fund them.

5 Regulation. Whether you are a republican or a democrat this administration has done its best to get banks into our business and tried to squeeze Realtors in general to help the Big guys. Thank you NAR for fighting for us. However regulation is an issue and even though we did not create this problem uncle sugar may use the housing/mortgage  problem as an excuse to reach into our pockets.

 6 Energy, the politics of energy and International politics in general are a wild card in this mix. Your guess is as good as mine. You can see how a problem in energy can easily create a problem in housing.

Having said all this people want to own homes. Many who were afraid may move into the market next year as terms, prices, and inventory are favorable. So the crystal is cloudy in my opinion for next year. Not big time up or down but pointing at neutral waiting for something, or some one, or a general collective burst of buying, due to great conditions to move the market in a big way.

Happy New Year to All.

What do you know about your buyers ?  If you have been in this business for more than 1 day you probably can say; 1 I know what they can afford and are approved for. 2 I know whether they have to sell to buy. 3 I know what they are looking for , and 4 I know there time frame. If you do not know these 4 things when working with a buyer then you need remedial real estate sales 099.

However there is one other thing you should know. You should know your buyer. When your buyer asks you," if I see a FSBO or another house how do I make sure you are in the deal?" Then you know your buyer.

Knowing your buyer means learning about what they do. Asking questions about what they want. Directing the buyer to property that is the most suited to their needs. Being genuinely interested in the buyers work , family and occupation.

I was born and raised in the City of New York but I can tell you if a piece of land will work for a chicken farm and why. I can tell you barbed wire fencing does not work for horses and why. I can tell you these things because I know my buyers.

If you watch the PBS series on the mind you will learn that learning and exercise can keep the mind young. You can teach an old dog , even like me, new tricks. Not only can I learn but can keep my mind young. So knowing your buyers teaches you about things you would never know about, helps you make the deal and develop a friendship as well as a business relationship that lasts past the deal , and is healthy for you as well!!!!

Know your buyer and you will live long and prosper.

When you look for an agent in the mountains what do you look for? If you are shopping for Big Canoe Homes do you go to the real estate company inside the gates. Maybe you are looking for Lake Arrowhead homes, or Benttree homes.

When you shop for a Realtor you should be looking for one who can show you all the communities. Someone who listens to you and provides you with information on what you want to buy. Not some one who is selling a community. When we formed All Mountain Realty this is what we had in mind. Right from the beginning we wanted to convey the notion that we worked in the mountains. All the mountains within an area of North Georgia that we are comfortable with.

We are happy with the way we are evolving. If you have mountain clients we will work with them in all our North Georgia Mountains. If they choose an area that we are not familiar with then I know a great network of agents to refer them to !!!

Visit us on line at www.georgiasno1agent.com or www.allmtnrealty.com

It is early Saturday morning here and foggy and wet. This is day 3 of no sunshine. Now remember we are in a big drought situation a little south of us so I should be happy. But the gloom is starting to get to me.

I am meeting a first time buyer this morning. He is making a life for himself and his children. He was inspired by one of our radio shows . So I should be happy. But I was really hoping to take a day off and play catch up on the paperwork pre-Christmas.

Along the way of searching for this buyer I found homes for 3 other first time buyers. One a single mom , 2 young couples starting out. Net to me is 5 folks to start or continue to work with after Christmas. I should be happy. Actually I should be in 7th heaven. But the gloom ( weather) and the work is making me tired.

Now the morning coffee is kicking in. It occurs to me that 4 of the 5 I am dealing with are first time buyers. Oh yes by the way I get them all pre-approved. Ther is a purpose to this. I am supposed to do good. I need to stop whining and thank God that he has blessed me with the opportunity to help these folks. Hey I am starting to feel better.

So to all those people whose blogs I have read, and there are a bunch of them , about attitude,  your right !!!!

Merry Christmas

We have a new great condo in Big Canoe for sale. It is 199,000. It is a 3 bedroom 2 bath unit. The beauty of this is 3 fold.

1 It comes furnished

2 It can be rented. There are no restrictions against this

3 There are 2 holiday rental companies and vacation companies with in the community that handle rentals if you do not want to do it yourself

Big Canoe is a gated community with hiking trails in a natural setting featuring golf , tennis, swimming, boating fishing, and a lot more.

Check it out you will be pleasantly surprised at the price and what you get for your money. 

OK, so you want to buy land. You are singing , "Don't  fence me in"  and got the bug. If you are looking in our North Georgia Mountains and maybe elsewhere there are some things you should watch out for.

There are two broad categories to choose from Developed and undeveloped land.

 Developed. This word can mean many different things. Usually it means that electricity is some where near by. It also means that the lot you are looking to buy is bordered by similar lots. The zoning is probably residential.  There may be some covenants in place aimed at protecting your investment. However it does not mean that you have water, you may or may not, nor does it necessarily mean building is controlled. More on all this later

Undeveloped is exactly what it says. Usually you are dealing in larger tracts but basically what you see, and maybe do not see, is what you get. So what do we look out for?

1 Water.  Easy right! If you do not have it you die. When buying land did you look to see if there were fire hydrants on the road ? If not you may be into a well. No problem just understand that you will be drilling at 8.00 a foot . Figure you could go down in our mountains as far as 300 feet. So you have a 2,400 dollar expense PLUS the price of the equipment. Also if you are drilling a well you had better make sure your lot is over 1 Acre. You have other regulations to contend with

2 Regulations. For wells in most counties in North Georgia your lot size needs to be over an acre. Also if you have a house plan that you are in love with and that is what you want to build and your land is under 2 Acres, GET A COUNTY APPROVAL. You may be able to put a house up but not the one you want. 

Zoning is another issue. If you are buying undeveloped land check the zoning. Check to see how many homes you can get on the land legally, if you plan more than 1. Also if everything around you is undeveloped you may want to check the land use plans.  You do not want a Walmart in your back yard.

3 Soil tests This is the biggest problem we have. Folks if you are coming this way then 99 percent of the time you will be on a septic system. That system must be approved . What this means is you need a soil test to determine the suitability of your land. If you are buying an Acre then this test becomes even more critical. If you hit rock you will have a problem  You must also be 50 feet away from water. This includes underground water that you cannot see, but the soil test will find. Also the one area on the lot suitable for the septic system may be where you want to put your house. This test runs about 325 dollars. It is to land buying what an inspection is to a home.

4 Slope. The more you have a slope the more expensive it is to build. Remember concrete is expensive and extra retaining walls cost $$$$  Also if you are building in a high altitude area the trucks cannot carry a full load up in many cases so . They will charge you a fee for climbing  AND charge you for a full load even though you do not have one. 

5 Water. Now you have water. But remember you must be at least 50 feet from water with any building. Some counties want more. Also if you are buying a larger tract with a beeeauuutiful stream down the middle remember a future buyer who may want to develop it sees that stream as a liability he must stay back from and maybe an expense he has to bridge over to reach the back part of the tract. You also need to check the flood plain maps.

None of the above should deter you from building in the mountains. What it should do is make you find a good mountain Realtor. The mountains are beautiful and in North Georgia we are very cost effective. Visit us on line at www.georgiasno1agent.com 

No one has a crystal ball but all indications are real estate in the mountains is going to be strong. We have a scarcity of land. We have great prices. We are very desirable. We are in fact as mountain property number 2 on the baby Boomer destination list.

What this means is we should see a continued growth. IN fact even though sales were down in 2007 prices were up. This to me is a strong indication of the desirability of the mountains and the money coming into the market.

It is all not good news. If you go to Asheville you will see the bumper stickers that read, " Nobody should have two until everybody has one." Indicating how prices have risen above the ability of many to pay. You can go to Oregon or Washington State and see also what an influx of money and new residents has done.

So my advice to the would be home buyer or the first time investor for 2008 is; Hey prices are good inventory is great and interest rates are super. If you are ever going to buy and not just talk about it NOW IS THE TIME TO BUY 

We are all saying now is the time to buy. But buy what ? I work with a lot of first time investors. So here is how I think about it.

First of all a first time investor is someone who maybe already owns their home and is looking to invest some money in real estate OTHER than their home investment.

I apply the sleep test. If you have this investment do you worry about or do you sleep well knowing you can make the payments. I always believe the investor should feel comfortable with his decision. As an example there is a super program here where you put 10 percent down on land and can hold it for 2 years without one payment. The developer is fronting the costs. Now you might think great I can buy 3 or 4 lots. But I advise against this just in case you cannot sell them and have to suddenly carry the payments. Sound familiar to those in the Florida condo market and elsewhere !!!

I also advise for the modest investor Land as opposed to buildings. The carrying costs are low . Now it is true you do not have the rental income, but on the other hand you do not have to worry about renters.

I would be very interested in learning how others feel about the first time investor and how they advise them.

I love this network and have to tell you why. The other day I posted a blog about a really great program we have for referrals. I figured it would get excitement and comments. I got 1 comment

The day after that I posted a blog about baseball and how I thought this Steroid investigation smacked of McCarthyism. I got a bunch of comments on that.

First of all I felt kind of funny posting a non real estate blog. Then when the non real estate blog got all the comments I sat back and laughed, ....in a good way.

Despite the economics news about the busted bubble, the implosion, the crisis, the meltdown, whatever you have heard it called  there was more response to a baseball scandal blog than there was to a blog about making money through an aggressive referral program.

The light bulb goes off in my head that we are all here, yes in a business to be sure, but just folks that get pissed at $3.00 gas, get stuck in traffic, have kids who come home late and "forget" to call, and for the men, occasionally leave the toilet seat up. We are just regular people tied together in this network. That is a wonderful thing.

I want to say a big thank you to the folks at House Values for introducing me to this network. This network cheers me up and charges my batteries. I read blogs every morning and learn something new each day.

To all of you I want to say have a great holiday season, a safe New Year and next year lets all make a ton of money so we can have 1st row box seats to see those beefed up baseball players. Bless you all