Charleston Style Architecture in Atlanta

Charleston, South Carolina – the name evokes a vision, usually, of the famed Battery and the row of majestic mansions facing out to sea.  These homes welcome the sea breezes with a style of architecture unique in time and place.  The architecture and its unique style is one of the many appeals of the charming city. 

One style uniquely Charleston is the “single house”.  Along the southwest face of the house is a full-length columned porch, or piazza, which is entered by a door on the street, and from the piazza, another door leads into the house. This construction was intended to keep the house cool, as prevailing southwest winds would sweep the house end-to-end, while the piazza roof would shade windows from the sun.

This charming and unique style has been copied elsewhere, notably in this home found on Rilman Road near the Governor’s Mansion and Pace Academy in the toney Buckhead neighborhood of my city, Atlanta.  In this home, the piazza is actually on the northern side of the house, but here it serves a different architectural purpose.  The front of the home is a classic hardcoat stucco construction with symmetrical windows.  Stucco is also a classic Charleston construction – in Charleston, it was common to place ornamental stucco over brick to help shield the brick from absorbing the excess moisture and humidity.

          

On Rilman, the driveway gracefully sweeps around this home to the garage in the back, so as not to disturb the front classic elevation.  As you step through the front door, you enter the piazza – which in this home has been glassed in and has become part of the main living area.  This was by design – in other words, this piazza was never a “porch” as one sees in Charleston, although on the second level the same space comprises a screened in porch which runs not only off the master bedroom but is also accessible from the other bedrooms on that floor.

 

The Rilman house in Atlanta has cleverly and beautifully adapted this charming and classic form of architecture for use on this gracious southern street.  There are other unique elements reminiscent of Charleston – the side bricked courtyard, for instance, which opens from French doors off the dining room and which offers an additional outdoor area for entertaining.

 

It is so refreshing when architects break away from the cookie-cutter pattern of building and adapt a style unique to the site and to the place.  In this location near the Governor’s Mansion and old genteel Atlanta, the Charleston-style design blends beautifully but also offers a unique and special home to this Atlanta family.  The home is currently on the market, offered for $1,195,000, and is available for viewing by qualified buyers by appointment.

HOME SWEET GNOME

How far will a seller go to sell a house?

            Would you bludgeon your neighbor with a garden gnome in order to sell your home?  In a recent episode of the television show The Closer, it happened.  Here’s how it went down: Seller is having a tough time selling in this market.  Discovers that potential buyers are put off by the fact that a registered sex offender lives in the house behind the home that is being sold.   (Sex offenders are required to register – you can find where they live in Georgia at http://www.gbi.ga.gov/).  Seller knows that if the sexual offender dies, they are taken OFF the registry.  So Seller kills the offender with a large, heavy garden gnome, thus creating a fascinating hour long episode as The Closer attempts to figure it all out, and locates the dead body (the dead body must be found, you see, so that the registry is cleared).

            It is a tough market to sell a home, true, but for the record, we do not recommend such drastic measures (especially since that seller won’t be moving anywhere except to  the hoosegow anytime soon).  But here are some tips that are safer, legal, and better calculated to actually help sell your home:

GET RID OF THE GNOMES.  Seriously.  They are evil.  Ok, maybe they are not evil, but buyers generally do not think kitsch is cute.  You want buyers to envision themselves living in your home, and if they don’t like gnomes (really, does anyone really LIKE gnomes?) then it’s a turnoff. 

EVEN THE TINY GNOMES.  Seriously.  Those little tschoktes you have everywhere aren’t helping the sale of your home in the least.  Small items have another name – clutter – and you need to get rid of it in order to sell your home.  Most buyers are going to see your home online before they ever step in the door – and they will make the determination from an online review as to whether they even WANT to come in.  What seems “normal” to you while viewing a home looks cluttered on a smaller computer screen.  Just say NO to gnomes AND to nic-naks.

            We have many more tips for selling your home.  But wanted to get the word out right away about the gnomes – remove them before someone gets hurt.  And call us when you’re ready to sell!

Seller Financing in a Buyer’s Market

It’s a buyer’s market in real estate, but the poor buyer may find it VERY difficult to get a loan.  Banks are simply not lending the way that they used to.   A savvy seller with financial wherewithal can turn the second fact into an advantage in this market by offering seller financing.  The potential benefits for the seller is that they can often negotiate an interest rate that’s more favorable than it would be from other investments.  They might also command a higher selling price because they are offering the added benefit of financing, since the buyer who chooses seller financing is presumably unable to qualify for a conventional mortgage loan.  Seller financing may be the ONLY way that type of buyer can purchase a home.  There could also be tax benefit if the transaction is structured as an installment sale, which allows the seller to spread out recognition of capital gain.

Of course, the big downside for the seller is the possibility that the buyer will default.  After all, by definition the buyer is somewhat of a risk – for whatever reason, presumably subpar credit, a traditional mortgage lender was unwilling to lend to him or her; that is why the seller is financing the transaction in the first place.

Here are ways to help minimize the risk for the seller: always thoroughly investigate the buyer (this should go without saying).  Get a credit report, but also a criminal background check.  Make sure that the buyer is not presenting you with false identification (identity theft).  Make sure that you get personal, professional, and credit references – and talk personally with them all.

Secure a large nonrefundable down payment, as much as you can negotiate.  The down payment can go towards the buyer’s purchase at payoff, but should remain the property of the seller should the buyer default.  The larger the down payment, the less the risk for the seller.

Structure the transaction carefully, providing creative enforcement remedies.  Often in such transactions, foreclosure is the seller’s only option should the buyer default.  Draft intermediate remedies to the extent possible – remedies for late payments, for instance, might have a strict penalty to discourage tardiness.

Seller financing is not for every seller – but those who can offer this additional benefit may find that the potential benefits outweigh the risks.

A House Divided - Selling Your Home While Getting a Divorce

It’s no secret that this real estate market is very difficult for sellers.   Home prices are lower than they’ve been since 1990, and prices are still falling.  Therefore, many homeowners are “holding on” – deciding not to sell in this strong buyer’s market.  Those who are selling generally fall into one of two categories: (1) those who have to sell (sellers who can no longer pay the mortgage or they are relocating a new city) or (2) those who want to move “up” and figure they’ll make up what they lose in selling their current home by getting a great deal on the move-up home.

And then there are divorcing couples.  Multiply the stress of divorce with the current economy and tough house-selling environment, and it adds up to a very difficult time.  Sometimes divorcing couples fall into category (1) – but oftentimes they don’t have to sell, but they want to sell in order to move on with their lives.  The house is often one of the largest, if not the largest, marital asset.  If one party decides to buy the other out, the party who is being bought out is getting short shrift – the current appraised value is certain to be low compared to what the home was worth before the 2008 housing crash – and also low compared to what the home WILL be worth when the housing market recovers.

In a relocation situation, Realtors often recommend that a seller consider renting out the home in lieu of selling, at least until the market improves.  Divorcing couples generally do not wish to explore that option, and of course it is often not in the divorcing couples’ best interest for the parties to continue to have to deal with one another in finding a tenant, maintaining the home, etc.    The divorcing party’s desire usually is to make a clean break and start a new life.  So, for divorcing couples who decide that they must sell together in order to fairly divide the marital housing asset, here are some thoughts and guidelines to make the process easier:

IF POSSIBLE, BOTH PARTIES SHOULD VACATE THE HOUSE.  Key to selling a home is making it as accessible as possible for agents and their buyers.  If your home cannot be shown, it won’t be sold.  If one or both parties are living there, it’s more difficult to show and since the two divorcing parties are often not speaking with one another, it makes it even harder to arrange showings.  It only makes sense that it is not a good idea for both parties to live in the house while it is being marketed and sold.  There is already enough stress in the relationship.

BEWARE THE “DIVORCE HOUSE” LOOK.  If only one member of the couple is living in the house, the home tends to look barren and sad with half the furniture gone. Agents can tell when it’s a divorce house, and buyers can too.  Since purchasing a home is often an emotional decision, a half-empty house is a big turnoff, even though much of the prejudice may be subliminal.  Buyers may not know WHY, they only know that the house feels sad, and they won’t want to buy it.  You are much better off selling a vacant house (totally vacant, cleaned, fresh paint) or one that has been staged nicely with furniture.   Another problem with one party remaining in the home is that it often causes disagreement between the divorcing parties as to whether the seller remaining in the home is “thwarting” the sale in any way.

IF ONE PARTY MUST STAY IN THE HOUSE, stage it.  It does not have to be “full” but it should look as if there has been time and effort put into making the house presentable for buyers.  In other words, no folding chairs and bridge tables in the dining room, and no blow up mattress serving as the bed.

CHOOSE A REAL ESTATE AGENT TOGETHER.  Both parties must trust and feel comfortable with the agent who is chosen.   Neither party should feel that the agent favors one seller over the other, communicates better with one seller over the other, or is otherwise prejudiced against one of the parties.  That said, we often represent couples when an agent on our team has been friends with one or both of them and it seems to work out fine as long as there is good communication between all three – the two sellers and the agent.  It often helps to have an agent who knows the parties, is empathetic, and fully understands the situation.  If there is any conflict or uneasy feelings during the course of the representation, be sure the let the agent know your feelings about this and give them a chance to rectify or adjust. 

COME UP WITH A PLAN OF COMMUNICATION.  We will often find that divorcing couples are not communicating well with each other.  This is not surprising, of course.  In that instance, having a plan whereby the agent communicates with both parties at once through email is often the key.  Otherwise, the agent has to choose “who to call first” and that can cause problems, UNLESS both sellers agree that the agent’s primary contact is with one particular seller.  If email is to be the primary source of communication, be sure that both sellers have ready, easy access to email and check it regularly.  Remember that DELAY – in responding to a request for a showing, or to an offer – can be deadly to a sale.  Buyers will move on quickly in this era of many, many homes on the market.

PRICE RIGHT FROM THE BEGINNING.  Divorce always takes an emotional toll, regardless of the circumstance, so you want to limit the damage as much as possible.  Better to get the house sold that to have it sit on the market forever while the parties wait – and wait – and wait – to fully move on with their lives.  Time and time again we find that the longer a house stays on the market, the less the seller ultimately gets for it, so this would seem to be a no-brainer.  Price right from the beginning!  In this strong buyer’s market, that is likely to be less than you thought or hoped you would get for it, but mitigate the damage by pricing well from the start.  Believe me, ultimately it’s better – and more lucrative – that way for all parties.

Our team has helped many divorcing couples through the process of selling a home, and we’re happy to help you as well.  Please do not hesitate to contact us at mwalser@kw.com or 404-272-3527.

WHAT’S UP WITH THE DOWN STOCK MARKET AND THE US CREDIT RATING?

Last week, the Dow Jones industrial average plunged to its lowest level since the low in 2008… S&P lowered its credit rating of the US …. what does this mean for real estate (since, of course, it’s all about real estate for a Realtor)?  While I’m not an economist, I thought I would share my perspective and the latest home sales statistics for the Atlanta, Georgia market (my home).

When the stock market goes down precipitously, many homebuyers panic and think it’s a bad time to BUY a home – of course, it’s the exact opposite.  When the economy is down, THAT is the time to purchase.  We’ve seen opportunities never seen before in the real estate market in current years.  These are the times when fortunes are made in real estate – buy LOW (that’s now) and sell HIGH (and “high” times WILL come again – they always do!)

I’m not sure what, if any effect, the events will have on mortgage interest rates.  In addition to lowering the US Debt Credit rating, S&P also lowered the rating of Freddie Mac and Fannie Mae.  These two entities buy most of the mortgages issued in this country, allowing banks to finance more home sales.  But what I understand is that since mortgage rates are tied to long-term Treasury yields, and Treasuries are considered a safe investment in uncertain times, mortgage rates are unlikely to rise because Treasuries will continue to do well.

I work in the Buckhead Market Center of Keller Williams Realty – part of the Rawls Group.  Each quarter the Rawls group commissions an in-depth survey of the home buying/selling activity in Metro Atlanta for the preceding quarter.  The findings for the 2^nd quarter of 2011 show some interesting trends.  Sales were actually HIGHER – up 3 percent as compared to the 2^nd quarter of 2010, but distressed properties still represent a large percentage of total sales – 40.9%, which is providing a downward pressure on pricing.

Here’s chart showing the home sales trends for the past three years in Metro Atlanta:

RELEVANCE FOR SELLERS: Current buyer price resistance is still very high due to the availability of low priced distressed properties.  Among all levels of listings, most (more than eighty percent) required a price reduction prior to sale, meaning that sellers are overpricing their homes intially.  Overall the LISTING INVENTORY is lower, but we still have 7 months of listing inventory, indicating that we are still in a strong buyer’s market.  (7 months of listing inventory means that if NO OTHER properties came on the market, it would take 7 months to sell the inventory currently in play).

RELEVANCE FOR BUYERS: there is an unusual opportunity, as noted above, for GREAT VALUE in purchasing a home.  Prices are still declining, there are many listings available, and a great number of anxious sellers.

Here’s a chart showing the percentage of sales that are DISTRESSED property sales:

With the fall in the stock market, even more opportunity is open to buyers savvy enough to know that NOW is the time to buy.  For sellers, there will be continued downward pressure on pricing until the market stabilizes.   We will be VERY interested to see what effect recent events have on our stats NEXT quarter!

What is “Midcentury Modern”?

A popular housing description these days is the term “midcentury modern” - but what does that mean?  Basically, a midcentury modern home is a 1950s or 60s ranch that has been “modernized” into a more contemporary home in some way.  Usually at a minimum the term implies that the home has been opened up-that walls have removed so that the floor plan is more "open". 

On the exterior, the sleek horizontal lines of these homes are reminiscent of the work of Frank Lloyd Wright. Think of his masterpiece Fallingwater-the eye is drawn side to side rather than up.  It is a style more of the earth than of the sky.  Specific external elements can emphasize this.  In this Atlanta midcentury modern at 1931 Dellwood Drive in Collier Hills, slender horizontal wood slats offer privacy for the patio they hide but also serve as a design element.

During the time period when ranches were built, gravel beds were also popular.  At Dellwood, the owner added this easy maintenance landscaping bed at the home’s entrance to add to the vintage feel. One distinguishing feature found in some, not all, midcentury modern homes is the carport attached to the front of the home-side entry, for a more uniform "face" towards the street.

Midcentury moderns are almost always brick-the predominant building material for ranch houses in the South at that time.  Painting the brick can further the modern feel-or, if combined with other classic elements such as columns, result in a mid century classic home.

On the interior, typically ceilings are low, typical of the period, but any popcorn texturing is removed to further advance the "sleek" and modern feel.  Here at the Dellwood property the homeowner chooses a monochromatic color scheme with "pops" of color.  Modern implies minimalistic, so the basic colors are neutral, but modern style is also “fun” – popular color accents are orange-red, green, and bright blue.

The kitchen is often modernized also- for a low budget redo, painting the cabinets a glossy white and replacing the hardware with more modern pulls and replacing linoleum with silestone, granite or corian will do.  While when built, these kitchens were typically contained, in the midcentury modern style at least one wall is opened up to the living area.

Midcentury moderns are one story dwellings.  The ranch style was designed to be the perfect melding of easy living with inexpensive construction in an era when land was cheaper than it is today.  Today, a large part of the cost of a home is the land on which it sits.  (The simplified builder's equation is that the lot should be one third of the final selling price for the home-such that a builder might expect to pay $500,000 for the lot on which she builds a $1.5 million dollar home).  So most new homes today are at least two stories, taking full advantage of the size of the lot.

Ranch homes were built for the post-war homebuyers eager to nest. In 1945, millions of American soldiers returned from the war to find the biggest housing shortage the US has known. Ranch homes were inexpensive to build and served the needs of these new homebuyers well. Tastes then were undoubtedly different than they are for us today - beautiful hardwood floors were covered with carpet. It's not unusual to find ranch homes where that is still the case, but as ranches are virtually all now in the hands of a new generation of buyers, carpet covering hardwoods is the exception rather than the rule, and these younger buyers have adapted the style to fit their tastes.

Midcentury homes-some modern, some classic, some retro- are ubiquitous in many parts of Atlanta.  In some neighborhoods, like Ashford Park, many of them have been torn down to make way for newer, larger homes.  In Buckhead, a fully renovated midcentury modern can go for more than $500,000. 

This one is on Dellwood Drive in Collier Hills. The street is somewhat of an anamoly-most of Collier Hills consists of older 1920-1930s cottages, but this street was built in the 1950s.  This home was originally built as a triplex-the upstairs was two units that have now been opened up into one large space.  There's still a separate rentable apartment downstairs.

As with any housing descriptive term, there’s no way to define definitively what “midcentury modern” means, as it means different things to different people.  But the homes that have become midcentury modern show that a classic style such as the ranch, with a few adaptations, can still meet the needs of a new generation of homebuyers.