What Buyers of Atlanta Luxury Real Estate Bought in September

It is easy to get distracted by the sheer number of new listings coming on to the market every day.  The best conclusions about transaction trends in the luxury real estate market can be reached by looking at properties that have just sold or gone pending. We have statistics that show macro trends in our Atlanta market but analyzing each sold property looking for common themes produces a different view.

Based on $1,000,000+ listings THAT SOLD or Contracted last month … the following trends were observed:

1.    An overwhelming majority of those homes sold were brick or brick with stone or frame accents.

2.    The majority of listings that sold were less than 5 years old.

3.    New construction spec. homes that were finished and had been for some time represented a good portion of the sales, particularly outside the Buckhead area.

4.    On sold transactions, list prices were not reduced much if any from the original list price (OLP).  The ultimate recorded sales prices, however, ranged between 82% and 100% of the OLP.

5.    If the home was older, particularly outside of the Buckhead market, then it represented a unique situation and reinforces “location, location, location.” as a key factor. The majority of these listings were either spectacular tracts of land with blue-chip addresses or with water frontage either on the Chattahoochee river or a lake.

6.    Almost all had finished terrace/basement levels with specialty rooms such as in-law suites and wine cellars.

7.    Most had a highly evolved outdoor entertainment area complete with pool and/or outdoor fireplace or kitchen, particularly the resales.

8.    In almost every case they did not advertise large bonuses to the selling agents.

Below are some highlights of the 76 home sales/pendings that involved real estate agents and were recorded through the multiple listing services in Atlanta.  We have grouped them by area according to the areas we track through Altos Charts and FMLS.

Dunwoody Luxury Sales in September

121 DUNWOODY Outside I-285, bounded on West by Ga. 400, on North by Chattahoochee River, on East by Gwinnett County line and Peachtree Industrial Blvd.  Includes Zip codes 30350 and 30338

3 Sold/1 Pending/31 Active (it will take almost 8 months to absorb the inventory at the current purchase rate)

During September all four listings in Dunwoody that sold or contracted stayed at the original list price (OLP) before getting an acceptable offer and one had a reduction of only 5% off the OLP.  Most of these homes were four sided brick with stone.  All the homes were on the market for more than six months.  With the exception of one 20 year old home, the others that sold were new construction or under four years old. All had a minimum of five bedrooms.  The final sales prices on the two closed transactions were 100% of original list price and 87% of original list price on the one that had already reduced the price 5%.

Most Extravagant and Most Unique
Pending sale - A special riverfront property listed at almost 3 million dollars has 3 dwellings and 7 bedrooms with extensive outdoor entertaining areas including a riverside pool, spa, outdoor kitchen and viewing dock.  The home is set in an established community on a spectacular lot and priced at almost 3M.  A log cabin and a sweeping view of the river and the Horseshoe Bend Country Club golfcourse were key selling features.

Noteworthy
A pending transaction on a two year old home that features an outdoor kitchen, saline pool, finished terrace level with wine cellar and master suite with sitting room and wet-bar had a list price of 1.995M.  It was listed for $619,200.00 more than the public records show it closed for in 2005.  Of course many of the improvements could have been added after that purchase.  One closed transaction involved a home that sold for $302,000.00 more than the sellers paid in 2003.  A new construction listing sold and closed at full list price.

East Cobb Luxury Sales in September

83 COBB-EAST South of Hwy. 120 (upper Roswell Rd.) to the Chattahoochee River and outside I-285.  Includes Zip codes 30067 and 30068

2 Sold/3 Pending/87 Active (it will take over 16 months to absorb the inventory at the current purchase rate)

The properties that sold and closed during September in this part of East Cobb sold for 82% and 83% of the original list price.  Three of the four homes did have price reductions between 88-94% of the original list price before going under contract.  Of the homes closed or put under contract, two were new construction, two were less than five years old and one home was built in 1967.  The two finished new construction homes spent more than a year on the market, but were under construction for some time while the other three resales were listed an average of 75 days.  All the homes were brick or brick with shingles.

Most Extravagant
Located in Atlanta Country Club, this tear down/new build project was built on a well located lot.  The home has an open floor plan, an owner’s suite on the main level, extensive use of old timbers, two veranda porches and a full basement.  The home was listed at 2.77M.

Best Value

This two-year old home had over 6,500 square feet of finished space and closed for $110,000 less than it had originally sold for.  It features heavy trim detail, a finished terrace level with in-law suite and a pool with spa.  The home sold for just over 1 million dollars.  The new construction home with six bedrooms and 6 baths featured a huge level private backyard as well as a finished terrace level with recreational room and had a master up with a fireplace and sitting room, and a Wolf/Sub Zero appliance package. It closed at 83% of the original list price for 1.325M

Most Unique
A renovated home sitting on 4+ acres with a finished terrace level, a wine tasting room a pool/spa and an outdoor fireplace. It had also been featured on HGTV.   The home was built in 1967 and located on one of East Cobb’s developing “estate” locations.  This pending transaction has a list price of $1.65M.

82 COBB-EAST North of Hwy. 120, Southeast of Sandy Plains Road. Zip code 30062

1 Sold/0 Pending/29 Active (it will take at least 29 months to absorb the inventory at the current purchase rate)

Sandy Springs and North Buckhead Luxury Sales in September

132 SANDY SPRINGS  Fulton County, inside I-285 and North of Atlanta City limits.  Zip codes 30327 and 30342

2 Sold/7 Pending/160 Active (It will take 18 months to absorb the inventory currently on the market)

During September in Sandy Springs/North Buckhead inside the perimeter there were nine properties sold or pending.  Five of them stayed at their original list price (OLP) until they received an offer.  Two reduced approximately 10% before receiving an offer and two new construction spec homes were slashed to 85% and 88% of their original prices before negotiating a sale.  All the homes that sold were on the market between 30 and 120 days. Six were brick construction, two were frame and one was stucco.  Five had five bedrooms and four had six bedrooms.  All newer homes had at least five baths.  Two were new construction, three were less than five years old and one was over 50 years old.

Most Extravagant
Listed at almost 4M this gated home features three finished levels, a pool/spa with outdoor kitchen and wine cellar/tasting room/sauna and media room in the lower level.

Best Values

The two spec. homes with prices slashed to 88% and 85% of the OLP are currently pending. These homes quickly went under contract after the price adjustments.  The resale located on a cul de sac with a level play area, pool and panoramic views, finished terrace level with media room, in-law suite and elevator closed at 1.1M or 81% of the OLP.

Most Unique
A contemporary home built in 1957 and renovated sited on over three acres with a pool located on a lake in a very private location.  This sale in pending but the final list price was just above 1M.

Sandy Springs/Outside the Perimeter Luxury Sales in September

131 SANDY SPRINGS  South of Chattahoochee River, North of I-285 to Cobb Co. Line on West, to Ga. 400 on East.  Zip codes 30328 and 30350

2 Sold/4 Pending/48 Active (It will take 8 months to absorb all the inventory currently on the market)

In this area of Sandy Springs above the perimeter all six homes stayed at their original listing price (OLP).  The two closed sales closed at 90% and 94% of OLP.   The homes were on the market for 30 to 70 days with the exception of one listing active for 152 weeks.  Three were brick, two were frame and one was concrete stucco.  Of the six homes that sold or went under contract two were new construction, three were less than five years old and one was 40 years old.  All of the homes had a minimum of 5 bedrooms and 4 baths, with one home having 10 bedrooms and 11 baths.

Most Extravagant
This gated home is located on 2 acres with 35 rooms, a stone courtyard and dramatic pool with lavish interior appointments sited on one of Sandy Springs developing “estate” addresses. The home was listed for almost 6M.

Most Unique

A six acre parcel with an older renovated home high on a bluff overlooking the river. Serene river and mountain views from the stone terrace and 320 ft. of Chattahoochee frontage.  Another new construction home on a cul-de-sac lot with finished terrace level and wine cellar on one acre on the river.

Vinings Luxury Sales

71 COBB-WEST Inside I-285 and West of Chattahoochee River.  Zip code 30339

0 Sold/1 Pending/32 Active (It will take 32 months to absorb the inventory currently on the market)

No single-family homes were sold or pending in September in Vinings.  A rare two lot parcel with 200 ft. of frontage on the Chattahoochee River listed at 1.75M was put under contract.  The property was on the market for almost a year and the contract had a contingency that was met this month so it is now considered a pending transaction.

Buckhead Luxury Sales

21 ATLANTA NORTH  Inside Atlanta City limits, bounded by I-75 on the West, I-85 on the South. Zip codes 30305, 30327, 30342 and 30309

11 Sold/21 Pending/456 Active (It will take a little over 14 months to absorb the inventory currently on the market)

During September in Buckhead, 10 homes showed a reduction ranging from 83-97% of the original listing price.  62.5% of the homes sold were brick or brick/combination.  No special agent incentives were offered.  The homes showed a wide variety in age, with 11 homes built in or before 1960 and 10 homes were less than 5 years old including 6 new construction.  Only four were advertised as “distressed” or corporate owned.  Two others were agent owned. The average days on market were varied but it is notable that 25% were on the market for more than a year and almost 60% were on the market less than 50 days.  Of the 12 homes that went under contract within 50 days of listing only one had a reduction from the OLP before negotiating a contract.  Most of those transactions are still pending but of the four that are closed, the final sales prices came in at an average of 94% of the OLP.  The one exception was the “most unique” property below.

Most Unique

An “Artist’s New England retreat” on approximately four acres.  Lighting throughout the home designed to showcase impressive works of art.  A new master suite, wine cellar, art studio, pool house and tennis court complemented the original structure.  This home sold for 2.25M.  It had one price reduction to 83% of the OLP and the sale was negotiated at 93% of the reduced price or 77% of the OLP.

Most Extravagant
This private gated estate on 2.8 secluded acres with a “blue-chip” address features an elevator, a home theatre, a nanny apartment and an infinity pool, seven bedrooms and seven baths.  The house is listed over 4M and is currently pending.

Closing

We are all trying to get the answers to the same questions.  Seller’s want to know “What do I need to do to my home to make it sell and what are my chances of getting a successful sale and at what time?”  Buyers want to know “ How can I make sure I am doing the right thing?”  “Am I overpaying?”  You hear expressions like “catching a falling knife” and “chasing the market down” and wonder should you continue to reduce your price or make a commitment to buy?  None of us has an accurate crystal ball reading on the exact combination that will produce a successful situation but there are certain things we can conclude from looking at the specific transactions mentioned above.  My interpretation is;

1. That buyers are pickier than ever and are not looking for a fixer-upper unless the location is worth it so sellers must make sure their property shows to it’s very best advantage.

2. That while there are fewer active buyers in the market than in the past, they are quick to respond when the right property enters the marketplace.

3. If the price seems right to them the buyers are  willing to close without significant price reductions.

4.  Sellers who are working with serious buyers and can be convinced their OLP was not correct are willing to negotiate substantial reductions.

The chances for success in these scenarios improve greatly when an experienced knowledgeable agent is involved.  Mastery in the art of negotiation is key when working in a stressful and uncertain market dealing with sellers who have to significantly adjust their expectations.  Also, having a committed professional scanning the market daily for you and making sure you are educated, pre-approved for financing if necessary and ready to act when the right opportunity appears gives a buyer a clear advantage.

Remember that we also provide you with two real-time charts that can be viewed on our website.  These charts will help you track the average selling price in the “top tier” (defined as the top 25% most expensive homes sold in that market) mapped against the same time last year.  You can also track the Market Action Index, which is the numeric value given to the amount of interest and activity there is in a particular market, with 30 being neutral and above 30 a sellers market and below 30 a buyers market for each of the areas we track.  We will also be adding Roswell and Alpharetta next month to this report.  One more note,  we have many people ask us if we “only” sell homes over 1M.  The answer is no.  We just find that trends “trickle down” and by staying informed on this market across neighborhoods and communities we can actually anticipate patterns in the lower price points.

For complete details on the transactions used to compile this report please email us at cheririley@atlantafinehomes.com.  We can also set up personalized real-time stats and listing updates based on your areas of interest.  And remember, if you are interested in buying or selling real estate in the Atlanta we look forward to earning your business.  What conclusions do you come to?  We would love to hear your take on the market.

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