Savannah Ga Real Estate Blog

Savannah real estate in 2010

Mike Farmer — Tue, 24 Aug 2010 21:12:00 GMT

I haven't written a blog post here in a long time. I have another blog website where I've been posting ariticles about Savannah real estate -- www.MikeFromSavannah.com. But I will start back posting here to let my website visitors know what's going on in Savannah. Like most of the country, Savannah real estate has slowed down significantly, although our prices haven't fallen as drastically as other areas.

Recently I transitioned my business to exclusive buyer agency, which means I no longer take listings. I started out in real estate in 1996 as an exclusive buyer agent and felt like I needed to return to my roots. Buyers are still lacking good representation, and in this market, good information is vital to making a successful, informed transaction. Plus, much of the real estate business in Savannah is from out of town buyers who aren't familiar with the area.

I will be posting here at least once a week, explaining buyer agent services and providing information about the Savannah real estate market.

Ardsley Park Video

Mike Farmer — Fri, 14 Nov 2008 18:35:00 GMT

For those you from out of town interested in Ardsley Park, a centralized subdivision in Savannah Ga close to downtown, I put together a video showing the styles of homes in the area.

Video Message

Click on the video frames below to play the video message I have created for you. If you have trouble viewing, please select "Viewer Help" on the view page.

A Ride Through Ardsley Park

Single Story For Sale in Ardsley Park

Mike Farmer — Wed, 22 Oct 2008 16:28:00 GMT

Perfect layout for stylish renovation

• 2,126 sq. ft., 2 bath, 3 bdrm single story - $285,000 - Priced to sell

Ardsley Park, Savannah - This is a perfect layout for a stylish Ardsley Park renovation -- needs updating. Plenty of space with the possibility of adding 800 square feet in attic which is accessed by stairs. It has a large kitchen, large dining room and very large master bedroom. The backyard is perfect for a beautiful couryard and flower garden. This home has a lot of potential -- homes this size, once renovated are selling at much higher prices. This home is generously priced to take into account the updating needs -- but it's mostly cosmetic work. It's located in a great midtown neighborhood that's one of Savannah's most popular places to live. A sloid brick home built in 1946 with very strong bones.

Property information

Price Reduced on 2234-2234 Whitemarsh Way in Merritt at Whitemarsh

Mike Farmer — Fri, 19 Sep 2008 19:31:00 GMT

Merritt at Whitemarsh, Whitemarsh Island - Announcing a price reduction on 2234-2234 Whitemarsh Way, a 1,100 sq. ft., 2 bath, 2 bdrm single story. Now MLS® $194,500 - .

Property information

Horse farm in Effingham County, one hour from Savannah GA

Mike Farmer — Fri, 19 Sep 2008 11:52:00 GMT

Effingham County, Georgia - Announcing 6116 Old Dixie hwy, Rincon Ga, a 4,322 sq. ft., 4 bath, 5 bdrm 2 story. Now $4,000,000 - .

Property information

What is so difficult to understand about buyer agency?

Mike Farmer — Tue, 09 Sep 2008 14:18:00 GMT

Here in the Savannah real estate market, and I will presume everywhere else, when a seller wants to sell a house and use a listing agent to market and sell the homes, the seller sits down to come up with a price. The seller factors in the marketing cost the listing agent charges, usually 6% of the sales price. If the listing agent is doing their job, they will spend a lot of time and money marketing this home -- There is the cost of a sign, cost of marketing in papers and magazines, cost of a website presence, cost of paperwork, cost of gas, cost in time and effort that could be spent doing something else, cost of insurance, cost of office space, cost of license fees, cost of education, etc.

Usually, the seller and agent decide what split in the commission is offered to a buyer agent who brings a buyer -- in Savannah, this is usually a 60/40 split with 60% going to the listing agent and 40% going to the buyer agent. The buyer agent represents the buyer and contracts to represent the buyer's interest in buying a home -- that basically means helping the buyer find the best home, at the best price with the best conditions, and providing the buyer with all the information they need to make an informed decsion, while keeping personal information about the buyer from the seller or selling agent -- maintaining confidentiality.

If a seller of a home decides to sell the home without an agent, the seller has less marketing costs involved and every buyer knows this, or should, so the seller should be able to sell the home for less than the seller who has to pay an agent a commission. What usually happens, though, is the seller does not market the home correctly and does not respond to buyers in a professional way, so in a competitive market the seller usually winds up not selling the home and forced to go with a listing agent and adjusting the price to entail the listing agent's marketing costs.

Marketing costs are a part of a home's sale's price. Who pays this marketing cost? Well, no one gets paid anything until a buyer buys. Since marketing costs are traditional and have come to be accepted as a cost of doing business they are added in the sale's price and factored into the average cost of homes. If sellers selling their own homes were successful and agents weren't needed, the average cost of homes would be lower. But agents are needed, because professional marketing is needed in competiive markets. Plus sellers don't have the time and patience to do all the work that an agent specializes in.

When a buyer buys, they are paying the marketing cost that is in the sale's price, and actually they have benfitted from the marketing cost because it allowed them to easily be aware of the home without looking for a needle in a haystack. But, the fact is that the buyer is paying the marketing costs.

Some people in the real estate industry believe that the buyer should pay the buyer agent's commision. This would be fine if the seller lowered the cost of their home by 3% or so to account for the split in commission. The reason these people give for promoting a split where the seller pays the listing agent and the buyer pays the buyer agent is that some believe the buyer agent doesn't earn their commission or that there is a conflict of interest if it appears the seller is paying the buyer agent. A good buyer agent, just like a good listing agent, earns their commission -- either can do a poor job whereby an argument can be made that the commission hasn't been earned, but that's another topic -- we'll assume we are talking about experienced, competent agents. Also, there is no conflict of interest since it doesn't matter to the buyer agent which home a buyer buys -- they just want to find the best home for the buyer at the best price and with the best conditions.

But, then there is the argument of why a buyer agent would negotiate for a lower price if it means the buyer agent will get less commission. It's not complicated. The buyer agent wants to satisfy the buyer so that the buyer will refer business in the future. This is the marketing cost of the buyer agent, plain and simple. When you develop a reputation for fighting for the buyer, you succeed. Not complicated at all. As a buyer agent, if I can show where I've saved buyer's money, then I have something to advertise and I can be trusted.

Even if the commission was divorced and seller pays selling agent and buyer pays buyer agent, it would still be negotiated in price and special stipulations, so it's an unnecessary complication of the commission structure. If everyone is doing their job it works just fine. I'm not sure if some agents don't like the fact that buyers have representation, or they really believe a divorce in commissions would be good for consumers, but I fail to see how it would be good good for buyers, and as a buyer agent, that is my concern. Even the few times I work as a listing agent, I still think the present set-up is best for both buyer and seller -- IF agents are doing their job.

Great news for Savannah!

Mike Farmer — Fri, 22 Aug 2008 14:21:00 GMT

I received this email from and ex-client and friend, Fred, which shows Savannah getting some pretty heady recognition. For all those interested in Savannah real estate, follow these links:

______________________

According to Inc. Magazine’s Best Cities 2008, Savannah ranks as the number three mid-sized city in America to do business and number fifteen city all-around. T

http://blog.thecreativecoast.org/ahh-life-at-the-top-a-city-could-get-used-to-this/2008/08/19

Savannah ranked ahead of neighboring Charleston, mountainous Asheville and both Columbia and Greenville. Overall, we placed in advance of Charlottesville, Salt Lake City, Durham, Las Vegas, Seattle, Portland, Phoenix, New York City, Washington, Miami, San Francisco and, yes, Atlanta as a preferable place to do business. Go ahead and read through that one more time…

Something worth finding more information ,,,

But this is an interesting rating for Savannah.

http://www.inc.com/bestcities/2008/best.html?size=2&year=2008

Fred

Tybee Island rentals: Great location

Mike Farmer — Sat, 16 Aug 2008 22:56:00 GMT

Tybee Island has a lot of beachfront locations to get a full view of the ocean, but there are other good locations to consider. One such location is on the back river where you have access to docks. Along Chatham Avenue there are properties where you have docks to go out boating, and you are at the entrance into the ocean.

1317 Chatham Ave is one such location and it is for sale or lease. Right next to RJs Restaurant, it is in a great location. This property has its own private dock, and you can go out at any time with most boats. It has an incredible view and is only blocks from the beach on the south end of Tybee Island. It's available for short term rent or a long term lease. And like I said, it's also for sale. It's recently been renovated and I will be posting new photos. The price was reduced last week to 1.2 million.

Call Mike at 912-429-3431 for rental rates. A perfect private getaway for boating enthusiasts, or anyone who loves a great view.

Speaking directly to a homebuyer about buyer agents

Mike Farmer — Thu, 14 Aug 2008 11:52:00 GMT

I would like to make a case why you will be best served using a buyer agent. Most homes for sale are sold through a real estate broker. This broker is representing the seller and has contracted with the seller to obtain the best price and the best conditions. If you are a savvy buyer and have the time to go from listing agent to listing agent and research each home that interests you in the context of overall market trends and prices, then you might not need a buyer agent; however, if you don't have the time or you are not up to date with the latest information, then you will do good to obtain a buyer agent.

When a home is listed the seller agrees to pay a commission to the listing agent and offers a split in that commission to any agent who brings a buyer, understanding that the other agent may be representing the buyer. So, in essence, the seller is stating they don't mind if the other agent is representing the buyer as long as a satisfactory purchase agreement is reached. So, in this manner, you, the buyer, receive representation and out of the money you pay to purchase the home, a portion of that goes to the buyer agent through the commission split and you don't have to pay anything extra for representation. If you went straight through the listing agent, you would not have any representation and, in a sense, you would be paying the seller the amount by which the whole commission goes to the listing agent who is representing the seller. This doesn't make sense. It makes sense to have representation.

You have a life and your time is valuable, and home-hunting is a cumbersome process. A buyer agent can handle all the home-search and home-showing details to save you the hassle and time it takes to set all this up. The buyer agent can also research market conditions and changes in certain areas of interest. A profession buyer agent makes it his/her business to understand the market and the trends. A good buyer agent will also have a database of the best vendors needed to complete a successful transactions: lenders, inspectors, attorneys, repair-people, surveyors, etc.

Having a buyer agent who is managing the process allows you to relax and look at homes without the worry of details and without the pressure of a salesperson. When you need vital information, you only need ask the agent and the agent will provide it. While you are working or enjoying your family and free time, the agent is working to manage the home-buying process and informing you of the progress, making suggestions to help the process along, reminding you of the next step to take. It's like having a very proficient assistant. The buyer agent is using specialized knowledge to create a profitable transactions and to remove all the hassle.

The buyer agent can also give you information that provides a different perspective than the marketing information of the listing agent who is representing the seller. Removing the positive marketing spin, a good agent can provide objective information that takes the cons into account along with the pros. Once a home is under contract, the agent can ensure that the terms of the contract are carried out in a timely fashion by following up with inspections, financing, title searches and such.

The big difference is in representation. Many times buyers who go directly through the listing agent will grow to like the listing agent because the agent may be courteous and professional, very likable, and grow comfortable talking openly to the agent, never realizing that confidential information will be reported to the seller, strengthening the seller's position and weaking the buyer's position. This is not underhanded on the listing agent's part, they are doing their job which is representing the seller. The listing agent is also going to do everything they possibily can to hold the deal together for the seller. Again, the listing agent is not being unethical -- the agent merely has an incentive to put all new information in the best light to make the transaction happen because their job is to sell that particular house, and if you, the buyer, leave that deal it might be a long time before a another qualified buyer comes along.

On the other hand, a buyer agent who is representing you will not relay to the seller any information that will hurt your position -- the buyer agent will keep your information confidential unless you expressly state you want the information given to the seller. The buyer agent will also look at all new information objectively and will not be driven to hold that particular deal together if it becomes evident it is not the best deal. Oh, it will be some trouble to the buyer agent to start over, but they know they will be involved in any house you buy, not just that one. And the buyer agent wants you to be pleased because you will tell others what a good job he/she did in representing your best interests.

All in all, it only makes good business sense to use a buyer agent so that you can comfortably discuss buying strategies without the worry of information getting back to the seller, and without the worry of the agent having an incentive to sell a particular home. By developing a good, honest relationship with one buyer agent, you avoid the hassle of being pressured by each listing agent you would have to deal with. Also, you wouldn't go to court and use the other side's attorney. Do yourself a favor and obtain a good buyer agent -- you'll be glad you did. The Savannah real estate market has many options, and changes are happening in areas all over Savannah -- a good buyer agent will be on top it.

Townhomes and Condos

Mike Farmer — Sat, 02 Aug 2008 02:00:00 GMT

I am seeing more buyers looking for condos and townhomes that in the past. I don't know if this is unique to Savannah real estate or if others across the country are experiencing this trend. Most of the buyers looking for townhomes or condos are baby boomers who are downsizing and looking for properties with less maintenance needs.

I think the complexes and amenities play a part, too. Being in a close knit community seems to be more important than isolation and privacy. Another motivating factor here in Savannah is being close to downtown. It's easier to find something affordable downtown in the form of a condo or townhome. It's also easier to leave and travel if you have a townhome/condo -- just lock and leave.

This need was obviously anticipated by investors/builders because there are plenty of options available in Savannah at this point. Many of the older buildings are being converted to condos and a lot of the new construction is townhome construction. Just about every new development around Savannah has a townhome component, a section of the development dedicated to less pricey townhomes.

I have to say there are appealing aspects to townhome/condo living. It's less trouble and maintenace free lifestyle is attractive. Being close to downtown Savannah is also appealing now that the downton area has begun to offer so much entertainment, enjoyment and interesting scenery. I suspect this trend will increase as baby boomer movement increases.

Paris, London, Manhattan - Savannah?

Mike Farmer — Tue, 29 Jul 2008 05:51:00 GMT

Here is a good article that mentions Savannah with these other great places -- talking about human scale. The layout of Savannah IS unique and makes it a great place to visit and live.

http://www.citizen-times.com/apps/pbcs.dll/article?AID=200880722115

Savannah Ga Homes for Rent

Mike Farmer — Wed, 23 Jul 2008 20:04:00 GMT

It seems more and more people are renting in Savannah Ga now that financing has gotten tighter and buyers are unsure which way the market is going. I've talked with several people lately who have called me about rentals and their stories are similar "I'm waiting to see what the market does."

I can understand this but I'm not sure I agree that waiting until prices go up is a good strategy. I manage rentals so I'm busy with property management right now. And, surprisingly, there aren't a lot of rentals on the market. Homes are still selling here, although the market is much slower than in the past 4 ot 5 years.

I think many buyers have been scared by all the news of the housing crisis. It helps to put things in perspective, and I am not a clairvoyant, so I don't know for sure what is going to happen in the Savannah real estate market -- however, if someone is going to buy a home to live in for five years, I'm not certain that waiting another year to buy is a good strategy. There is a strong possibility that after the elections in November, the national news is going to become more positive and the country is going to settle down to take an objective look at our economy.

In the west, home prices rose so quickly that a downturn was inevitable. This downturn has affected the whole country, but the economy here in Savannah is stable and the home prices here in Savannah are not exorbitant. What many people may discover in the coming months is that there is value in the Savannah home market and buyers will start entering the market in large numbers which will cause prices to start rising again. Those people locked into a year lease may be entering the market as prices are on the way up.

The problem is that it's impossible to time the market and buy at exactly the right time. I have a feeling that the buyers who are buying right now and are negotiating 5-10% off the list price are going to be glad they bought when they did, because it's unlikely prices will fall much more -- maybe 2-3%. There's a good chance prices will merely stay flat for a few more months.

If our local enconmy was depressed, I'd say waiting a year might be a good idea, but since we are fairly healthy and diverse economically, I don't see any huge drops in prices. I might be wrong and everyone has to follow what they think is best, but my best guess is that prices are as low as they are going to get. Now, for the would-be buyers who just can't get a loan, there is no option, they must rent -- but for the buyers who can buy, you might want to talk to a finance professional and get some advice rather than rely on news reports.

If you buy now at a low point and live in the home for at least 4 to 5 years, it is highly unlikely you will lose money, and you can start getting the tax break that home ownership offers -- not to mention living in the house you really want to live in rather than having to choose from the limited rentals available and paying for someone else's mortgage.

Savannah Real Estate -- Another Look

Mike Farmer — Sat, 19 Jul 2008 14:39:00 GMT

On of the biggest concerns on the minds of buyers considering Savannah real estate is -- What's going to happen to prices? will prices go down? will they go up? will they remain stable?

I think Savannah has a bright future. We are economically diversified and there are no good reasons why Savannah will not grow in the years to come. The biggest factor to help calm fears about the national housing situation is good old perspective. As a buyer, it can be misleading to focus on a short-term situational downturn in a market. However, if the downturn is fundamental and an area is going through long term depression where industry is leaving and many jobs are being lost, then that's another story. Michigan and Ohio are experiencing fundamental, long term problems -- Savannah is experiencing the effects of a national slow down and the slowdown is situational and relatively short-term compared to problems in other areas.

Another question a buyer needs to answer is -- How long will I live in the home I buy? If you are only going to be in a home for a year, then I suggest renting, but if you are buying a home to live in for five years or more, then you should do well over time. The days of buying a home and living there one year then selling for a profit are over.

However, if you are buying as home to be a home, a place to live in and design to meet your personality, to make as an extension of your personality and lifestyle, a real home, then the ups and downs of the market are less important -- over time in a popular area like Savannah, real estate will gradually go up and your investment should be protected.

More people will begin looking at their home as a place to live rather than a cash flow investment. This is how it should be. So if you are thinking about buying in Savannah, and you are planning to live here for a good period of time, getting the home now while prices are stable is probably going to be a good decision. No one knows what the future will bring, but using common sense should tell you that an area like Savannah will be in demand for some time. If Savannah didn't have a bright future, you wouldn't see as much development going on as you see around town. These developers are not building because they think Savannah will be a depressed region -- they are building because they see a future here.

Image search for Savannah GA homes

Mike Farmer — Sat, 12 Jul 2008 22:44:00 GMT

Most buyers looking for homes to buy in Savannah GA, or any other area in which they searching, are looking for photos of homes. A good way to make sure you find a real estate site that has photos is through Google's image search. When you get to Google search just click on "images" up type and it changes the type of the search from "web" to "images" and shows you the top site for photos.

When you change form the regular web search to the "image" search, just put in your search terms as you normally would "Savannah GA real estate",

"Savannah GA homes" or "Savannah homes for sale" and - Voila! - you have the sites that have the photos. One of the best ways to get to know an area is through visual means like photos -- and not just photos of home on the market in a particular neighborhood, but photos of the whole area.

Try it -- you'll like it! Or you can go to http://www.mikefromsavannah.com/savannah-ga-photos/ and look until your heart is content -- and your heart will be content, because Savannah is a beautiful city with beautiful homes and beautiful surrounding.

Mike from Savannah

Savannah GA Homes For Sale: Lease/purchase might be an option

Mike Farmer — Wed, 09 Jul 2008 17:02:00 GMT

I have shown quite a few homes lately in the Savannah GA market and there are quite a few deals right now. I see prices falling a little but not a whole lot. Howerver, sellers are more willing to negotiate. It's hard to say when the market will turn and prices will start rising again. It might be next summer before we see any signifcant rise in prices. I have a feeling all new listings coming on the market will be priced more reasonably than many were at the first of year.

The message is clear to sellers that their homes will sell if the price is right and the home is in good condition. One thing I have begun doing when helping buyers decide a price is check the last 3-4 sales numbers to determine an estimate of the present market value. A couple of years ago we were using comparables up to 12 months old, but that is misleading in this market. Savannah still hasn't experienced sharply falling home prices, but buyers are at an advantage in this market in that this year they will not be paying signifcantly higher than the prices from last year.

For all the buyers who have been caught in the credit crunch with lenders tightening their guidelines, lease-purchase is a good option, and private financing can be tapped into if you have the right connections to private lenders. There are several creative ways to put together a purchase if the lenders are balking on giving you a loan, either becuse you don't have the downpayment money or you have a hiccup on your credit score. These creative financing deals need to be gone over with fine-tooth comb so that you fully understand the arrangements, but they can be done where you can accomplish the goal of home-ownership.

Don't give up if you have been turned down by a lender and you abhor the idea of renting -- there may be a way out. Call me if you would like my ideas on ways to buy a home in this environment even if you've been turned down by the banks.

Savannah Homes for Sale: Shameless Promotion

Mike Farmer — Fri, 04 Jul 2008 01:55:00 GMT

All the real estate blog experts advise against promoting your services in a blog post. Since I have a lot of contrarian in me and since I want your business, I thought I would break the rule and promote my services. You will be hard pressed to find an agent with as much experience as I have who provides the type of buyer service I provide.

Most agents who have been in this business for a long time either get into management, list homes only or start teaching. I still work with buyers and drive them to homes, gather information for them, answer their emails personally, pick them up at the hotel to go house looking and provide any other service they need.

So, what I'm saying is I'm dedicated to real estate and I want your business. I know the Savannah GA real estate market and I can consult with you to help you make an informed, profitable decision about Savannah GA homes.

Now, that wasn't too bad. Call me at 912-429-3431 and experience the best real estate service in Savannah GA.

And don't forget to visit my home buyer website -- www.MikeFromSavannah.com

Savannah GA Rea Estate Report: Resales vs New Home Construction

Mike Farmer — Wed, 02 Jul 2008 15:06:00 GMT

Yesterday I posted the results of research regarding Savannah GA new home construction and Savannah GA midtown resales on the Homegain blog. You can find the results here - http://blog.homegain.com/savannah-georgia-real-estate-home-sales-photos -- I am a contributor for Homegain Blog. Homegain is a company out of California that helps buyers connect with local real estate agents to determine the value of their homes or to find a local agent to either represent them in the buying or selling of homes.

The results show a large decrease in the number of homes sold in the first six months of 2008 as comapred to the first six months of 2007 and 2006. New homes are selling for slightly less per square foot, but the midtown homes are selling slightly higher per square foot.

Right now buyers are getting more for their money with new construction in west Chatham and Effingham counties. Although midtown showed an increase in prices, it was small and it seems the market has stabilized and prices are practically flat compared to last year -- still somewhat higher than 2006.

Savannah Homes For Sale - 10 steps to home-buying efficiency

Mike Farmer — Sun, 29 Jun 2008 13:41:00 GMT

1. Use a buyer agent so that you don't have to go from listing agent to listing agent. Establishing a trust relationship with a buyer agent will save time and prevent hassle.

2. Have your agent set up a home-search program that sends all new listings automatically.

3. Make sure the home-search program has a personal site where you can save the listings you like.

4. Gather information on the areas and take a tour of areas before looking at homes.

5. Gather information on the top choices and make a file on each area with pros and cons.

6. Once an area has been established look for homes that meet your criteria and price range -- have buyer agent preview the homes to rule out obvious time-wasters.

7. Have buyer agent put together a home-sales report of homes sold within the LAST 4 MONTHS in the your area of interest.

8. Get good faith estimates from 3 different lenders and get a pre-qualification letter.

9. Get with buyer agent and develop a complete list of special stipulations which create the best conditions for the contract.

10. Decide on the maximum price you will pay and the best conditions then have at least two back-up options of homes you like in case you don't get the price and conditions.

Another action that will increace the efficiency is to decide ahead of time who will do the inspections and get the inspections completed immediately after a contract is accepted so that you have time to negotiate repairs if repairs are needed. There are many options for Savannah homes and many good areas. Narrowing down the process before riding and wasting gas is a smart move with the price of gas being what it is.

Savannah GA Homes: Five things to consider when searching for a home online

Mike Farmer — Tue, 24 Jun 2008 12:16:00 GMT

1. Make sure your search terms are specific "Savannah GA waterfront homes", or "Savannah GA homes, new construction" or "Savannah GA Homes, Ardsly Park". This will most likely deliver results from agents who know these specifics and it will help personalize your search.

2. Don't stop on the first page of search results, many good results for Savannah GA real estate are on the second page. National companies who are looking for traffic to sell real estate advertising spend a lot of maney to get on the first page of Google, but they aren't necessarily the best results for you in your search for Savannah GA homes for sale.

3. When you click on a result, make sure the site has easy access to home infomation -- you are looking for homes, not advertising or marketing pitches.

4. Don't be afraid to contact the agent who offers information -- this can be a valauble source for gaining good context to go along with the pictures of homes.

5. Don't be impressed by pretty sites, some of the ugliest sites can be the most informative and useful.

Happy hunting! For all the information you need about Savannah GA homes, call Mike at 912-429-3431. I also have rentals. (I had to throw in a little pitch -- forgive me. The good thing is I'm not pushy, just eager and willing to help.)

Home Inspections

Mike Farmer — Sat, 21 Jun 2008 16:52:00 GMT

Around Savannah GA homes under contract usually fall apart around inspections. Our contracts have changed somewhat from an "inspection with right to request repairs" to a "due diligence" period where you have 5 to 10 days (whatever is agreed upon in the contract) to perform all inspections, and it allows the buyer to walk away for any reason. In a way this strengthens the buyers hand, but in another way it has caused sellers to develop the attitude "Okay, you have so many days to do due diligence, so take these days and decide if you want the house" and they are less thrilled about having to do any repairs.

You can still negotiate for the seller to repair defects, but most sellers are balking on this. In a way I understand the seller's reluctance to make repairs because the lending situation has gotten so tight that transactions fall apart financially at the last minute (another reason transactions fail, now). The seller has already spent the money to make the repairs and might feel that if he had sold it to someone else he/she might could have saved that money if the other buyer didn't ask for repairs.

I suggest buyers use common sense when asking for repairs and to not nitpick -- nitpicking is what creates the most problems. Around Savannah GA homes are mostly older and it's to be expected that old homes need some repairs. However, if the defects are major, then negotiation is called for to fix the major defects, and if the seller refuses, consider walking away during the due diligence period.

Also, when making your initial offer, use good judgement about what you can in the home and if you see things that are in obvious need of repair make your offer accordingly and then be prepared to do that work yourself -- it makes the process cleaner with less chance of making someone mad and uncooperative by giving them a long list of small repair items you want done -- the seller is stressing enough making plans to move without having to complete a long handyman list of repairs.

Common sense, good judgement and a well thought offer go along way toward an easy closing.

Savannah GA Homes: New Home Incentives

Mike Farmer — Wed, 18 Jun 2008 22:56:00 GMT

Savannah GA home builders are still giving incentives to buy a new home. I was at several new home sites today showing homes to a military pilot who is being stationed at Hunter and the onsite salesperson at Berwick Plantation said the builder was giving away $6000.00 in "mad money" to be spent on closing costs, upgrades or extra sodding for the back.

There is still plenty of opportunities to buy new construction at a relatively low price. It appears the homes are moving, just not as quickly as a couple of years ago. Chapel Lake has about another year to go before it's built out. The Enclave looked like it might have two to three years left to build out.

The shopping strip built on Hwy 17 right beside Berwick Plantation appears to be getting tenants and doing well. All in all the development seems to be moving along, so if you buy now, you ought to do well -- That's if the sales continue. The military personell at Hunter will be adding a lot to the housing market when they return, and it won't be long now.

Just closed on an Ardsley Park bungalow in Savannah Ga

Mike Farmer — Sat, 14 Jun 2008 05:28:00 GMT

We just closed on a small bungalow in Savannah GA's best neighborhood (in my opinion) -- Ardsley Park. This home sits between two parks in the center of Ardsley Park -- a great location.

It sold for $282,000 and appraised for $285,000 - the got a fairly deal in this market. The first home the buyer was sold out from under us as our offer was being made. After the initial disappointment the buyer eventually accepted this home on 50th street is actually a better deal -- it works out that way a lot of times --fate?

There are plenty of good deals on the market right now in Ardsley Park, Parkside and the Baldwin Park area. I also just got a home on Barnard under contract and this was another bargain-- $210,000 for a huge Victorian partially renovated. It needs about $90,000 of work for completion, but it will be a beauty when it's finished. It's located in the Starland Art & Design District which is an up and coming area that will soon be a trendy Savannah location.

I showed this couple from Phoenix about 25 Victorian homes and I can report that the Thomas Square Streetcar District (aka Starland) is a alive and well with renovation. Some of the completed renovations were absolutely gorgeous. The whole Savannah midtown area is alive and well with good bargains everywhere. Call me at 912-429-3431 for more information about these homes and investment opportunities.

Savannah GA Real Estate: The Social Aspect

Mike Farmer — Sun, 08 Jun 2008 18:08:00 GMT

Everything is changing as internet increasingly brings us together in social media sites on the web. This a good thing as it allows consumers and service providers to connect in creative, personal ways. I have recently started a Twitter account and anyone who wants to follow can find me, @mfarmer, but don't expect a lot of real estate talk -- I joke around some -- however, send me a quick request anytime.

I've also opened up a Facebook account - Mike from Savannah - which is an easy and quick way to stay informed about the Savannah GA real estate market. I will be adding pages to Facebook as time goes on -- feel free to join the group and particpate.

One of the wonderful aspects of these social sites is all the user generated content where buyers and sellers can give input and everybody can stay informed and learn together. A big part of real estate is getting good information about your area of concern. If you are an out of town buyer moving to a strange area, it helps to get information, see photos, talk to local residents and start getting a good feel for the area.

Although social media is in its infancy, it's becoming a powerful form of communication and very useful for real estate consumers. Even after you have bought a home, you can stay connected and keep up with trends and changes so you are constantly informed about your investment and the neighborhood/area where you live.

I look forward to having you as a part of my community. Savannah GA real estate is constantly changing and we want to be a part of that change.

Mike from Savannah

Savannah Ga Homes: Sales report for first 6 months of 2008 compared to 2007 and 2006

Mike Farmer — Sun, 01 Jun 2008 20:38:00 GMT

This report is for single family homes sold during the first 6 months of 2008, 2007 and 2006 in Savannah GA covering homes sold in downtown Savannah GA, midtown Savannah GA, southside Savannah GA and the islands of Savannah, GA (excluding The Landings on Skidaway Island). The information is taken from the Savannah GA MLS statistics.

568 homes have sold in 2008 with an avergage sales price of $177,500, $112.40 a sq ft, 97% of asking price, and average 88 days on market.

934 homes sold in 2007 with an average sales price of $179,900, $114.53 a sq ft, 98% of asking price, and average 65 days on market.

1014 homes sold in 2006 with an average sales price of $171,485, $109.73 a sq ft, 99% of asking price, and average 46 days on market.

So, you can see the housing downturn has had an effect on Savannah GA real estate, with about half as many homes sold with about double the time on the market before being sold. Prices have not been affected that much -- prices have stabilized at around $178,000 on average.

A big part of this slowdown has been a slowdown in out of town buyers who can't sell their homes where they live -- in over-priced areas devasted by the housing slowdown. I am currently working with 10 buyers who would buy tomorrow if they could sell their homes in the towns where they live. If you factor that in to the number of agents in Savannah who are working with similar buyers, you begin to see the problem. There are signs that the housing market is breaking loose in some areas and that 2009 will be a turn around year.

Downtown Savannah Ga Homes: The Renovation Continues

Mike Farmer — Sat, 31 May 2008 18:17:00 GMT

I thought the national slowdown in the housing market would affect the renovation in Savannah ga, but it appears to still be ongoing. I've almost completed with the renovation of the place I bought on 39th Street near the Starland Art District and the other houses being rebuilt on the street have been completed. I will be looking for another one as soon as I rest up.

It's a continuing source of fascination to watch the old homes regain their character and neighborhoods being brought back to life. If I wasn't so old and my muscles didn't get so tired, I'd think about renovating full time. There's something very satisfying about working with the hands and rebuilding something old into something new while preserving its character.

In a few years I predict the whole area from Victory Drive to Gaston St will be completely renovated and walkable, urban neighborhoods will be rejuvenated -- businesses will follow with little shops and diners and art galleries sprinkled here and there. Some people aren't attracted to that style of living, but I am.

If you are interested in renovating older homes, email me at Mike@MikeFarmerRealty.com and I will let you know some the options I think make financial sense.