Monthly Archives: April 2011

Block Talk: How Friends, Fans & Followers (the “F-Factor”) Influence Purchasing Decisions

Posted on April 29, 2011 by | Leave a comment

By Judy Price

I was introduced to the site trendwatching.com by recommendation of a colleague, which gave it credibility in my mind and increased my interest in reading it. So, too, can happen with many of our purchasing decisions as those around us play a role in what we consume. This month’s briefing on trendwatching.com gives a name to those influencers: “F-Factors” (Friends, Fans & Followers). 

Today let’s delve into some of the ways that this “F-Factor” Network can influence consumers to buy: 

  1. Discovery – friends, fans and followers are influencers and give credibility to a brand.
  2. Rated – Since everyone is so busy, and so many ads come at us every day, targeted and personalized recommendations will be more likely to get a consumer’s attention. There is a lot of this integration going on with Facebook right now.
  3. Feedback – trusted recommendations and testimonials are influential in how people will purchase.
  4. Together – a multitude of tools now allow users to share and coordinate purchases with others, even when not physically shopping together.
  5. Me – websites and apps that takes users’ social media content, accumulating it in one place, to provide the most relevant information in a short amount of time. 

What does this mean for real estate?

Research has shown that more than 80% of homebuyers search the internet first for a home. To reach future buyers, it is important to understand how real estate buyers are influenced. Friends, fans, followers, those in a closer circle have a strong influence over purchasing decisions. Buyers are looking for the home that they will find most exceptional and that will also be validated by their sphere of influence. Here are two ideas I have for you today about reaching the “F-Factor”: 

  • Online presence. Have you made it easy for buyers to share information about your community with their friends? Integrate your website with your social media campaign. Through the use of Facebook “Like”Buttons and Four Square “Check-Ins” interested buyers can go public, quickly letting friends know of their interest.
  • Resident referrals. Last night, I met a 2 year resident of one of our properties at an art event. He greatly enjoys the location and the value of his home and was more than willing to share the reasons with others. Find ways to let referrals speak through your residents to their “F-Factors”.

Understanding the F-Factor is about being exceptional so that consumers will find and choose you. What are you doing to be exceptional to influence the F-Factor?

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Posted in Block Talk, First-time homebuyer, social media, Trends

On the Road with Coldwell Banker NRT Development Advisors Accelerated Sales Division

Posted on April 27, 2011 by | Leave a comment

By: Bill Graham

The month of April has seen us traveling across the southeast, meeting with various commercial asset managers, bankers and financial portfolio managers discussing how NRTDA Accelerated Sales Division can provide an alternative to their traditional methods of disposing of underperforming assets.

The common thread among all that we have spoken with is their constant balancing act, shifting between maximizing the value of the asset and the return of capital in the shortest amount of time possible. In many cases the overriding determining factor is the amount of time it takes to return capital. It is not uncommon that decisions are made routinely to bulk sell a property and forego the additional revenue a traditional retail approach might bring, so that the capital can be returned quickly.

One of the managers proudly shared with us how he had recently cleared a small asset in less than three months. He listed the property with one of his commercial brokers in a bulk sale highest and best offer format above a $3 million minimum. The broker received 8 offers and the manager selected what he felt were the top 3 offers in relation to price and terms, and the broker went back to the top three and solicited a final best and highest offer, with the “winner” being a $3.1 million offer that closed 60 days after contract.

Sensing the pride in the manager’s voice, we asked him if he would mind answering a few questions, which he gladly agreed to: 

On a $3.1 million transaction what were your expenses and what did you net?

“Our expenses were around $240,000, it was 6% in commissions and $54,000 or so in closing cost, net to the bank was around $2.8 million”

As far as the terms of all the 8 original offers, were any better than a 60 day close?

“No, most of them were 90 days or more with numerous contingencies for due diligence”

If all 8 of the original offers were on the same page in relation to the required terms of the offer and all 8 were brought into one common area and saw that there were 8 real buyers all wanting the property, do you think competition and confidence would have driven the price above $3.1 million?

“That’s a good question; probably yes, it would have been higher”

Is the bank obligated to the use of a specific broker and the accompanying commission expense or, would the bank be interested in selling the property in a format that did not obligate them to pay any brokerage commissions?

“Certainly the bank is looking to reduce expenses, no commission obligation when disposing of non-performing assets would be great”

At this point the “Light Bulb” went off in the manager’s mind and he realized that, had he offered this property for sale in a Bulk Auction format with the Coldwell Banker NRTDA Accelerated Sales Division , he most likely would have gotten a better/higher price, a better/quicker closing date and would not have had the $240,000 in seller expenses because in our auctions it’s the buyer who is responsible for all the commissions. As the meeting concluded, the manager thanked us for equipping him with another option to evaluate as he decides how to best dispose of the bank’s non-performing assets.

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Posted in accelerated sales, Auction

10 Terminus Place – SOLD OUT!

Posted on April 26, 2011 by | Leave a comment

 Coldwell Banker NRT Development Advisors (NRTDA) is pleased to announce the sellout of the luxury high-rise community, 10 Terminus Place, located at the corner of Piedmont and Peachtree Roads.

“In this challenging market, the NRTDA sales team and developer, Cousins Properties, proved their ability to work with buyers to close sales. 10 Termimus provided a quality intown home at a price point that motivated buyers,” said Brad Horner, president of Coldwell Banker NRT Development Advisors.

NRTDA the exclusive sales and marketing company for the lavish 32-story condominium tower with 137 units, sold 110 units at 10 Terminus Place from September 2009 to September 2010. According to independent data provided by SmartNumbers, the fast pace of sales earned 10 Terminus Place the top spot among new condo sales, when ranked by sales dollar volume. Total sales volume for the community was approximately $64 million.

The condominium development was marketed under the Coldwell Banker Previews International® program, the first real estate marketing program to go beyond the reach of the local real estate market and specialize exclusively in marketing luxury properties to a national and international audience. Today, Previews® is widely considered to be the world’s consummate marketing program for successfully promoting luxury properties to a local, national and international marketplace.

One of the most coveted addresses in Buckhead, the building offers one, two and three-bedroom homes. Residents enjoy amenities including a concierge, 24/7 doorman, furnished guest suites, dog walk park, saltwater pool and spa and clubroom with catering kitchen.

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Posted in Atlanta Home Prices, award winning real estate, Coldwell Banker Previews, Condo, Cousins Properties

Block Talk: Atlanta Q12011 Single-Family New and Resale Update

Posted on April 22, 2011 by | 1 Comment

By Judy Price

This week I attended the Greater Atlanta Home Builders Association’s Builder/Developer/Lender forum. This monthly roundtable event allows industry professionals an opportunity to share ideas and have an open dialogue about the real estate market. NRTDA’s very own Bob Romano was featured this week to talk about Q12011 trends. Here’s a recap of the findings:

Permits. 900+ permits pulled so far this year. The top 25 builders pulled 60% of the permits. Last year by this time, approximately 1900 permits were pulled. A glimmer of hope came up at the meeting: a lender in the group was proud to announce she was closing a construction loan this week.

Resale Single Family. Within a 6-county area* there has been a strong increase in pending resale inventory (pendings are a leading indicator to sales) the first three months of the year, just like in 2010. While this is expected because of seasonality, this year these pending sales come without the help of the tax credit. At the end of March, there were 3600 pendings in the 6-county area. The estimated months of supply is currently 9.3 months, which is down from 12 months in February. While the year got off to a slow start, velocity is increasing, just later than last. Check out the graph below:

New Homes. On the new construction single-family home side (6-county area), the data is showing a 33% increase in pending home sales from February to March. And as the inventory is being absorbed, the percentage of new construction distressed sales continue to decline year-over-year. Distressed sales were 23.8% of all sales in 2010 and so far in 2011, 17.8%.

 *Cherokee, Cobb, DeKalb, Forsyth, Fulton and Gwinnett

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Posted in Block Talk, Housing stats in Atlanta, Trends, Uncategorized

Sellout of 248 Unit Condo Community in Less than 12 Months!

Posted on April 20, 2011 by | Leave a comment

Coldwell Banker NRT Development Advisors (NRTDA) is pleased to announce the sellout of Mosaic at Millenia, located at 3573 Conroy Road in Orlando. All 248 units in the community sold in less than 12 months.

NRTDA, who managed the sales and marketing for the property, bypassed traditional consumer real estate marketing practices and instead tapped into their global network of brokers to identify potential investor buyers. The investors shared the company’s vision of Mosaic at Millenia, as an attractive purchase in an enviable area near shopping and local attractions.

“Securing buyers for these tenant-occupied condos was only half of the process,” said Alec String, Coldwell Banker NRT Development Advisor’s vice president of sales in Florida.  “Much of the Mosaic at Millenia’s success can be attributed to the sales team’s follow-up. The team’s relationships with the investors and title companies were key in completing the sales.”

The one, two and three-bedroom units feature private patios/balconies, 9-foot ceilings, crown molding, chair railings, assigned parking, designer kitchens, valet trash service and alarm systems. Listed in the high $60,000s to the high $90,000s, they have historically offered a return of $700 per month in rent. Located in a Greenbelt area within walking distance to Mall at Millenia’s boutique shopping and restaurants, the community includes a lighted tennis court, pool, business center, media room, outdoor grilling area, sand volleyball court, billiard room, theater room and playground.

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Posted in Orlando Real Estate

Help Homeless Moms and Babies through HomeAid Atlanta!

Posted on April 18, 2011 by | Leave a comment

Help Homeless Moms and Babies through HomeAid Atlanta’s 10th Annual Essentials for Young Lives Drive

Did you know that women with children are among the fastest growing segments of the homeless population?

For many of these families already struggling to make ends meet, necessities like diapers and formula can be simply unaffordable. In honor of Mother’s Day, we invite you to take a moment of your time to help homeless mothers and their babies by participating in HomeAid Atlanta’s Essentials for Young Lives Drive.

In support of the Drive, we are collecting diapers, formula, bottles, etc. from April 25th -  May 2nd. Please help us make a difference!

Simply bring your donations to 900 Peachtree Street and place them in HomeAid Atlanta box.

HomeAid Atlanta will distribute all donated items to local shelters serving homeless families and young children. Contact Leslie Williamson with any questions at 404-705-1584. For more information about HomeAid Atlanta, please visit www.homeaidatlanta.org.

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Posted in Home Builders Association of Atlanta

NRTDA’s New Weekly Column – “Block Talk”

Posted on April 15, 2011 by | Leave a comment

By Judy Price

My experience in the real estate industry spans the last decade: a decade of highs and lows for all those involved. As NRTDA’s market intelligence expert, I’m able to use my experience to help a wide variety of stakeholders looking to succeed in this business. From the homebuilder who broke into the Atlanta market, to the investor buying pools of assets, I’m able to blend all of our in-house professional expertise with comprehensive statistics, demographics, trends and analytical tools to provide a real take on the market.

I’ve started a weekly column called “Block Talk” to turn this market and industry data into uncommon insights and advantages – and put it all towards giving you competitive information.  I invite you to follow along each Friday.

Today is a bonus day; two “Block Talks” are already posted for your reading pleasure….

Judy

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Posted in Atlanta Real Estate, Block Talk, Market data, Trends

Study states “8 out of 10 Americans say bricks and mortar remain the best long-term investment”

Posted on April 13, 2011 by | 1 Comment

Reuters just posted an article stating  – “Even as a five-year slump in house prices drags on, eight-out-of-10 Americans say bricks and mortar remain the best long-term investment, according to a study released on Tuesday.”

What exactly did the study state?

The survey by the Pew Research Center’s Social and Demographic Trends project found that 81 percent of respondents see housing as the best investment a person can make, despite a slump in prices that has knocked nearly a third off home values since 2006.

The telephone survey was conducted among a nationally representative sample of 2,142 adults, between March 15 and March 29 this year.

1)  37 percent “strongly” agreed that a home is the best long-term investment a person can make

2) 44 percent “somewhat” agreed that homeownership is the best investment a person can make

3) Nearly half of all homeowners said that their home was worth less now than before the recession began in late 2007

4) Among those whose homes have lost value, Westerners and Midwesterners were more pessimistic about a speedy recovery

5) 23 percent of all homeowners said that if they had it to do all over again, they would not buy their current home

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Posted in Atlanta Real Estate

Block Talk: My Take on Atlanta Home Prices

Posted on April 9, 2011 by | Leave a comment

By: Judy Price

“Atlanta Home Prices Continue to Drop,” was the headline that jumped out at me in yesterday’s email from the Atlanta Business Chronicle. The article referenced February, didn’t state what constituted “Metro Atlanta” or what type of residential product was surveyed, so today I’m doing my own research on local home prices.

Earlier this year, I discovered that a small number of counties made up a majority of the closings. While NRTDA formerly reported on a 15-county area, we are now looking to where the activity is occurring. For single-family (“detached”), my stats today are pulled from a 6-county area: Cherokee, Cobb, DeKalb, Forsyth, Fulton and Gwinnett. Last year, 82% of closings occurred in these 6 counties.

Based on an FMLS 6-county detached search, quarter over quarter, I found: 

 So, closings were up slightly from first quarter 2010 to 2011, but the average sales price was down 4.4%. By looking closer at the data, it is the increase in number of distressed sales and their price points that are the culprit. On the other hand, market sales of detached homes are showing a sign of price stability this quarter versus last. I will continue tracking this trend.

The ABC article does agree with me that it is the distressed segment that continues to pull pricing down. But we don’t read about that until the concluding paragraphs. My headline would have been “Atlanta home prices continue decline due to distressed sales.”

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Posted in Atlanta Home Prices, Block Talk, Distressed Sales in Atlanta

Block Talk: But Can They or Will They Buy?

Posted on April 1, 2011 by | Leave a comment

By: Judy Price

This week I read two positive articles online from CNN about the residential real estate market. As a student of the market, I thought it would be fitting to revisit some fundamentals this afternoon as I analyzed these articles:

Real Estate Fundamentals:

1) Cost to Buy vs. Rent; 2) Level of New Construction Starts and 3) Ability to Buy

Market Fundamentals:

1) Supply & Demand; 2) Unemployment and 3) Consumer Confidence

In “Real Estate: It’s Time to Buy Again,” statistics on the shortage of new construction starts (which are well below closings) and a steep decline in prices are positive signs for those who can and want to buy to get off the fence. And in the complimentary article, “10 Best Cities for Home Buyers,” Atlanta came in as the #1 best city for having an average monthly rent much higher than the average mortgage payment and for double-digit declines in home prices the past few years.

Based off my calculations, we’ve hit 3 of the 6 fundamentals above. Unfortunately, buyers who want to take advantage of this market still have a low sense of confidence about the market and/or their own situations. Or truly, they might not be able to buy. Interest rates are still low, but without a down payment or good credit history, homeownership is still in the future.

The last sentence of the “10 Best Cities Article” asks “…When will those Atlanta renters recognize the clearance sale going on all around them?” Sorry Mr. Reporter, but I think you would benefit from a fundamentals refresher too. See above.

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Posted in Atlanta Real Estate, Block Talk, Friday Five, Trends