DEL.ICIO.USHoliday home sales slowdown
For the AJC
Sunday, November 02, 2008
Most people spend time with friends and family during the holidays, but those looking to sell their houses are ecstatic about opening their doors to strangers.
November and December can be difficult times to sell because the pool of buyers shrinks, agents say. Caroline Massey King, an agent with Harry Norman, Realtors, tells her clients not to be concerned if they’re not getting a lot of showings from now until the end of the year.
LOUIE FAVORITE / Staff
Experts recommend sellers stick to simple decorations, such as wreaths, and avoid overdoing it.
Deb Hempen
It’s a Wonderful Life Holiday Tour of Homes at Chateau Élan features several houses for sale, including a 20,000-square-foot mansion.
Deb Hempen
If you’re looking to buy, ask to talk with the builder. Sometimes, furniture and decorations can be included in the sale of a show home.
Grace Baine
The owner of this home for sale in Suwanee plans to decorate as usual for the holidays. She’s also considering a holiday open house.
“You’ve got enough to worry about during those months,” she said. “I tend to make sure that my clients who are selling understand that while you’re on the market in November and December, mentally kind of don’t think of it in terms of how long you’ve been on the market or will be on the market. Because it is much slower.”
Buying a home has extra challenges, too, such as dealing with contract negotiations and getting loan paperwork completed when vacation days and federal holidays have to be factored in.
That doesn’t mean, however, that both parties should grab a mug of eggnog and sing the blues.
Here’s some advice for people on either side of a transaction from area agents, sellers, mortgage brokers and builders.
End-of-year rush common
Jan Wagner, president/broker of Canton Street Mortgage Corp. in Roswell, has noticed a rush to get closings done by the end of the year, partly so buyers can take advantage of tax deductions.
“We do see a lot of real estate agents write a lot of contracts toward mid-December,” she said. If lenders are closed the day before, day of and day after Thanksgiving and Christmas, buyers and sellers are losing three days of time to negotiate, arrange inspections and appraisals and get the financing approved. That combined with vacation days means financial institutions and mortgage companies tend to be short-staffed.
There are also delays from the buyer, who may be out of town visiting family when needed to provide information for the loan. She’s also noticed a change in emotions.
“People seem a little more on pins and needles trying to get anything done,” she said. “Get in close to Thanksgiving time through November into the end of the year, everybody’s a little more urgent, a little more anxious.”
The buyer says: Homeowners have seen how the holidays can push back best-laid plans. Myron Green intended to purchase his Atlanta home last December but discovered that timetable had to be changed when those involved in the financing process took days off for the holidays. “I was hoping to close before Christmas, but it was put off until after the new year,” he said.
What this means to you: If you’re looking to buy during November or December, get preapproved and identify a lender and type of loan. Wagner said it’s possible to get a loan processed in two to three weeks during this time of year, but it’s important to not procrastinate. “You would want to build in a little more time than you would during a normal calendar time,” King said.
Watching for Santa
Fewer homes typically are sold during November and December, but the buyers who are looking are usually ready to make a move, agents say.
“They’re a serious buyer who wouldn’t be out during the holidays themselves if they weren’t out to buy,” King said. “I typically encourage my sellers to stay on the market during the holidays if they can deal with it. The showings they get are going to be what I consider better ones.”
That sometimes could mean making your home available on the holiday, or that weekend, said King, who once had to show a home on New Year’s Day to an out-of-town buyer.
Another scenario agents see during the holidays is when a potential buyer wants a visiting family member to check out the house, said Laura Van Rhee of Metro Brokers/GMAC Real Estate. When a potential buyer wants to view a house at the last minute, even if you’re busy and not prepared, King said it’s OK to let them in.
Say something like, “I would love for them to come see my house, but just know I will be preparing for Thanksgiving dinner and my kitchen might have stuff out,” she suggested. If people know what to expect, agents say they typically understand, even if you need to stay in the home because cookies are in the oven.
The seller says: Grace Baine plans to decorate as usual at her home at 7115 Laurel Oak Drive in Suwanee, which has been on the market for about eight months. The golf course home in Laurel Springs is priced at $843,000. She’s also considering planning a holiday open house and even a possible giveaway to attract real estate agents. She is embracing the holidays as “an opportunity to market [the home] and to make it festive.”
What this means for you: Think about decorations and scheduling. Some Realtors recommend continuing to spread the holiday cheer because the decor adds a festive flair to the home; others suggest streamlining the trimmings, especially those that are messy or bordering on tacky. Van Rhee believes less is better. “If people come in and get overly distracted by too much of a holiday theme, they get too busy looking at the decorating and miss some of the best features of the home,” she said. “You might only have one opportunity, especially in today’s market, to capture that individual as they’re coming in the door.” She adds that sellers need to consider that some buyers may not share the same religious beliefs, which could turn them off. If decorating, items such as holiday candles, stockings, a wreath or a small tree are appropriate, said Tisha Gay, director of marketing and public relations for Metro Brokers/GMAC Real Estate. Avoid using too many lights, holiday knickknacks or heirloom displays such as homemade ornaments and drawings. If you decorate, agents say photos for the multiple listing services or online listings should not be taken with the holiday accessories.
Season ushers in holiday tours
Several builders, community groups and nonprofit organizations debut showcase homes in November and December to show off dazzling designs and help raise money for charities. For instance, the 2008 Atlanta Magazine Dream Home, built by Jim Bankes, at Suwanee’s the River Club, is to open this weekend and run Thursdays-Sundays through Nov. 30.
Also this month, starting Nov. 21, The seventh annual It’s a Wonderful Life Holiday Tour of Homes will take place at Chateau Élan. The tour will feature several houses for sale, including a $4.5 million, 20,000-square-foot home; a 10,000-square-foot golf course home that’s serving as the tour’s designer show house; and other new homes, priced $400,000-$500,000.
The builder says: The buyers that Brian Willis sees at this time of the year are transferees. “It is one of the better times, because you know the customer that you are dealing with,” he said. “They are good, qualified buyers. They are ready to buy. They’ve got to be in sometime in December to get the kids in school by the first of January.” The exposure is one of the reasons why his homes are involved in the Chateau Élan tour. “You get 2,500 people who get to walk through your houses,” he said. When Willis participated in the tour three years ago, he earned business from people who had seen his home on the tour and hired him to build a custom home.
What this means to you: If a home piques your interest while strolling through it, ask to speak to the builder. During the conversation, inquire about specifics of the house as well as the builder’s background and licensing, and what steps the builder takes to ensure quality, Willis said. A contract typically can be negotiated while the home is still open. If you have money to spend and get attached to something in the show house, sometimes the homes can be sold with the decorations, furniture and accessories included.
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