Price Per Square Foot is Misleading for Real Estate Values in Thomasville, GA.

As a builder in South Georgia and licensed real estate agent, I would like to start by saying that most realtors in Thomasville, GA. Are either lazy or just plain ignorant. The only way they know how to list or sell a property is by using square footage and by how much land the home has. A true realtor would consider the amenities and features when selling or listing a home, and not just tell any buyer that the home is overpriced when that agent is not an appraiser and “P.S. it is illegal for any agent to tell a buyer a home is overpriced” they are realtors NOT appraisers.


And the once that are listing and selling homes in the Thomasville, GA area are using the worst built homes as comparison. They are using the square footage of homes being built to bare and below minimum code and by an unlicensed person. These cheaply built homes being sold for $80/per square foot can not be compared to a home built above minimum code and green quality built homes. These cheaply built homes around Thomasville, GA should NOT be used as comparison.

Local realtors need to start taking responsibility for their actions and incorrectly informing home buyer’s of homes being overpriced when they do not have any idea because they are not appraisers. If the home was overpriced the appraiser will inform the buyer so they can renegotiate the price. It is only a matter of time before a buyer or seller sues a local realtor for misrepresentation.

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Over the years working as a Realtor I have seen numerous home buyers as well as other Realtors try to use dollars per square foot as a good measuring stick for market values. Sorry folks but that is a very poor way to analyze value.

There are a number of reasons why this is the case but lets just start with individual homes themselves. If you look carefully at housing characteristics you can basically break down a home into one of four categories.

Economy~ Economy would be characterized as building a home in the most cost efficient manner. The materials used in constructing a home in this category more often than not will be cheaper than other categories of homes. The goal is to deliver a home that would be affordable to those buyers on a lower income. If you looked in a catalog of materials such as cabinets, flooring, lighting and plumbing fixtures you would see the lowest grade used in this category.

Standard – A home built under this category would be a step up from an economy home. A large percentage of homes would come under this category. You would expect to see the quality of the home jump from an economically built home. With a standard built home you may see some construction items that could also be found in both economy and custom categories.

Custom – In a custom built home you are bound to see things that you will not find in either an economy or standard home. The quality of the materials used to construct the home as well as the amenities inside are going to be different. As an example you may see a higher level of finish woodworking, cabinetry, flooring selections and hot buttons like granite counter tops and stainless steel appliances. Custom homes are more unique and may have other architectural characteristics that make them more expensive to build such as intricate roof lines and higher end materials used on the facade such as stone or brick.

Luxury – A luxury home is the creme de la creme. These are the homes that are built with the highest grade construction materials. There is no expense spared on anything and the amenities seen inside the home are sometimes enough to make your mouth drop! It is not unusual to see such things as home theaters that rival going to the movies, indoor swimming pools, wine rooms and other such amenities.

Of course it is possible for a home to fall somewhere between each of these categories but the four categories are enough to show you why using price per square foot to determine a homes value is a very poor measuring stick.

Lets look at a quick example of two homes that are both 3000 square feet. They are both a year old.

House “A” has the following amenities:

• Granite counters and stainless appliances
• A custom tile shower
• Hardwood floors throughout the 1st floor
• Raised paneling and crown moldings
• A brick walk way

House “B” has the following amenities:

• Formica counters and white appliances
• A standard shower
• Carpets through out the 1st floor
• Plastered door openings with no molding
• A dropped flagstone walkway

How about a quick guess of which home is going to be worth more on a dollars per square foot basis?

This example clearly shows that you can not take the average price per-square-foot and multiply it times the square footage of the home you are thinking about buying. There are far too many variables involved with the characteristics of a home to make a generalization like that. It just doesn’t work that way. The pricing per-square-foot simply gives you average or median ranges; it shows you trends in the market. It does not compute value!

The comparison above only touches on one reason why cost per square foot is a poor indicator. There are others including the fact that prices per-square-foot can vary based on the homes location, improvements, condition, age and updates, including lot sizes, and whether it’s a one-story, two story or split-level home, among other things.

I think it is easy to see that if home “A” was also located in the best part of town and home “B” was not, the disparity of the selling price is going to be even greater which would change the price per square foot between the two homes.

One of the best reasons for even looking at the price per square foot of a home is to see what the trends are in an area. You can look at the average price per square foot over a given time period and see whether overall market are values going up or down.

In Massachusetts one of the other factors that can really skew the averages on the price per square foot of a home is how the square footage is actually calculated. In the Greater Boston MLS there is a big disparity on what agents include in the gross living area of a home. You will see that some homes include finished basement space and others do not. This can cause quite a fluctuation in how these figures appear when doing an analysis on square footage value.

As you may realize, finished space below grade is far less valuable than above grade living area. When these figures are mixed together it makes a straight line comparison much more difficult.

I have run into plenty of buyers agents over the years that try to present a case of why their clients offer is a fair one. When they start talking about price per square foot I usually end up giving them a lesson in proper market evaluations:)

http://massrealestatenews.com/price-per-square-foot-is-misleading-for-real-estate-values/


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Dual Agency vs Buyers Agents - Thomasville GA. IS A Dual Agency

How using the agent who is listing the house you want to buy can cause a conflict of interest. Here are a few reasons why using a Portland Buyers Agent will help you get on equal ground with the seller.

When you work with a real estate agent to help you find a home, you either hire a buyer’s agent, one who works for you not the seller or a dual agent. You have a dual agent if your real estate agent is both representing you as a buyer and the seller of the home you want to buy. This is usually is a conflict of interest even though it is legal here in Oregon and Georgia.


When you use a buyers agent you eliminate the dual agency. This also ensures you have someone who is working only for you and not the seller. Click here to read a post about myths in using a buyers agent.

Now, imagine a realtor working with a seller for quite some time. The listing agent has invested quite a bit of time and money to get the sellers to list their home with that agent. Numerous meetings with the seller, emails and phone conversations, essentially forming an important relationship with the seller. That listing agent has promised that seller the highest possible price, and in fact the agent owes his client a legal and fiduciary duty to the sellers during the entire course of the real estate sale.

Now imagine the same agent begins working with a buyer. They want to use this same Realtor to purchase their real estate. The buyer likes that same house the agent is listing for the seller mentioned above. Now that agent has a legal and fiduciary duty to get his new buyer the lowest possible price and represent them in the transaction.

Here is something to think about, who will the agent fight for the most? Is this agent going to try and get the lowest price and best terms for the new buyers? Or will he be looking out for the sellers best interest, who hired him in the first place? Could there be any conflict of interest? OH, YEAH

Here are a few points to why using a buyers agent to represent you in a home purchase will help you avoid that conflict of interest. Making contact and "hiring" a buyers agent from the start of your home search can benefit you when you close your deal.

1. You have an agent who represents only your interests without a conflict with the seller. If you hire an agent to represent you as your buyer’s agent, you eliminate those conflicts that can work against your best interests.

2. You can find and hire a buyer’s agent who has the experience and professional abilities you need as you get ready to spend hundreds of thousands of dollars. The best part is that you as a buyer do not pay for their services. The listing agent is the one who pays the buyers agent who bring in a buyer. In dual agency, the buyer agent commission (also known as BAC) would be kept by the listing agent essentially doubling his commission.

3. A buyer’s agent has a focused interest in protecting you, and that means using all of their resources, knowledge and experience to help you find the best home, negotiate the best price, handle all contingencies appropriately, protect you from legal liabilities and contract ambiguities, and in being your transaction coordinator until the close of the sale.

4. Because your buyer’s agent does not have a legal or fiduciary duty to protect the seller, he can negotiate the price and terms entirely with your interest and preferences in mind.

5. If your buyers agent is not trying to represent the seller, they will be in it for you and you alone. Since they don't represent the seller, there is no dual agency and no conflict of interest from dual agency.

6. A real estate buyer’s agent has a desire to help you do your due diligence on the home you wish to purchase to help avoid problem areas that may not be completely pointed out to you by the agent representing the sellers.

A professional buyer’s agent will help you find the ideal home without biases, provide you information to help you make and informed decisions about location, help you negotiate the best possible price and terms, and guide you through the transaction in its entirety all the way to closing.

http://www.portlandpowersearch.com/blog/dual-agency-vs-buyers-agents/

Price Per Square Foot is Misleading for Real Estate Values

Price Per Square Foot is Misleading for Real Estate Values

Thomasville, Georgia Real Estate Agents Boycotting Green Homes and green home builders.

Small town does not embrace green building, but some agent’s listings are fast to misrepresent their listings as Energy Efferent.

It is the twenty first century and the concept of green building—which may have sprouted as a trend from a select group of forward thinkers—is slowly becoming standard practice. If going green is the future, it seems that the future has arrived. And it is here to stay.


According to McGraw-Hill Construction’s 2009 Green Outlook, “The overall green building market (both non-residential and residential) is likely to more than double from $36-49 billion in 2009 to $96-140 billion by 2013.”

The report says that 70 percent of consumers report they would be more inclined to purchase a green home in a down market.

“It is likely that green will reach the mainstream of the global marketplace and achieve critical mass.”

So why is green building growing so rapidly?

It seems the awareness of climate change, with eyes also focused on other pressing environmental issues, is driving society to find a sustainable way of living, and fast.

This heightened consciousness, coupled with the facts—that green building saves on energy costs while creating a durable, healthy and higher quality home—draws many closer to the green building industry.

It doesn’t hurt that architects and design companies are catching on and creating attractive options for consumers, such as prefab homes, green communities, and apartment complexes.

While some of these projects may first seem costly, they not only offer a high quality of construction, but also help save on long term energy costs—which in the end balance out with original overheads.

Additionally, green rating systems, such as LEED for Homes and Energy Star, have become more prevalent, making it easier for those interested in meeting green standards to succeed in their mission.

Today, the demand for green building is high and continues to rise, growing simultaneously with society’s dependence on fossil fuels, elevating again and again with each bump up in fuel prices.

So, yes, green building is good, but what exactly is it?

Energy wasted

While this question requires a thorough answer, this article can only highlight the basics:

Green building implies a process of designing and constructing a home that is energy efficient, one that uses fewer materials while making better use of the materials purchased. The building shell, or envelope, is the most important factor as this determines most of the energy flow.

“We waste 50 to 90 percent of energy in our buildings,” award-winning architect Michael McDonough said. “Energy use per square foot has gone up 14 percent per year in buildings over the past 10 years.”

Green building needs to result in a highly durable home that saves on energy costs, provides a healthy life for those inside it, while minimizing the home’s footprint on the environment.

A green home strives to have high indoor air quality; what is inside the home—from building materials to furniture—should not add toxins to the air. Products that do not emit VOCs (volatile organic compounds) should be used as much as possible.

A green home should save on energy and resources such as electricity and water. If the building envelope is constructed properly, the energy needs of a resident can decrease up to 80 percent. McDonough recommends autoclaved aerated concrete for the shell.

It is airtight; and with its thermal properties, it can save up to 50 percent of energy used for heating and 75 percent in air-conditioning energy use.

Solar power for hot water is also a great advantage. Water consumption should be minimized by using low-flow shower heads, high-efficiency toilets, and high-efficiency or tankless water heaters.

Recycled materials or materials that can be recycled should be used, as should products that are locally made. Products should be resilient to avoid unnecessary replacement and repair.

Whether building a home or remodeling, there are many ways to go green. It begins by thinking green—understanding the advantages of life inside a green home as well as its benefit to the environment all around.

By Adam Miller

HOW WELL IS YOUR HOME INSULATED?

99% OF ALL THOMASVILLE, GEORGIA BUILDERS USE CELLULOSE INSULATION IN ALL NEW AND OLD HOMES. ALWAYS ASK WHAT’S BEHIND THE WALLS.

Disadvantages

• lower R-value per inch than most other insulation products in use today
• losses it R-value when wet and does not recover well if saturated wet
• tends to settle in attics and when blown into walls without binders (glue), losing R-value
• does not provide an integral vapor barrier


According to the University of Massachusetts Building and Construction Technology department, wet cellulose takes a long time to dry. While fiberglass may be faced with drywall as soon as the insulation is installed, wet cellulose must lose at least 75 percent of the water in it before installing drywall. Depending upon humidity, spray cellulose insulation may take weeks to dry, and professional sprayers will use space heaters to speed up the drying. From what I have seen in Thomasville, Georgia the day after insulation is applied the drywall goes up.

We spray Icynene and occasionally lose jobs to wet spray cellulose. I've used an infrared camera to look at walls of two existing homes that had wet spray cellulose applied. There were many cold spots, some apparent voids, and some settling. We have "dumped" a stud cavity of freshly applied wet spray cellulose onto poly, weighed the material, and dried it. There was approximately 0.9 gallon (ca. 7 pounds) of water in the cavity. We have been on a job site the day after the application of wet spray cellulose and have seen the sagging, settling, and falling out of the cavity. Sheet rock is typically applied within a day of application of the wet spray cellulose. I cannot comprehend the use of a wet product in a wall (wet things tend to shrink, settle, and sag) and then covering it up immediately (probably good practice from the perspective of the wet spray cellulose applicator). I would like your perspective/experience with wet spray cellulose and would like to find some "science based" studies on wet spray cellulose and other insulation products.

Concerns that have been raised about wet-spray cellulose Insulation and its effectiveness.

Are Bigger Homes a thing of the past?

Real estate expert Barbara Corcoran explains why the average size of a new American home has shrunk by 300 square feet and discusses what this shift away from the opulent means in the housing. NOT in Thomasville, GA. You can get a really cheap home with big square footage and a big electrical bill too.

Visit msnbc.com for breaking news, world news, and news about the economy

Buying and Selling a Green Home in Thomasville

A greener world is not just a dream like some people in the real estate industry seem to think. Building codes have changed and continue to change towards a more energy-efficient method that includes the way a home is constructed, type of windows and even the type of insulation used. Consumers, now more than ever are more aware on what amenities are available to them besides just buying the biggest home on the block.

The problem arising in the real estate industry, especially in small towns like Thomasville where a limited amount of knowledgeable Green professionals realize how the real estate industry has changed. Real estate agents and firms that once thought that the introduction of green, energy efficiency, and smart home technology construction by Capital Home Builders, Inc. ( a local builder) was just an outsiders sales gig. This innovative and insight of an unheard type of construction was not well received by the local real estate industry.

Nevertheless, as overwhelming news media embraced the necessity of a more sustainable way of life came to light these real estate agents and firms find themselves now jumping on a bandwagon they know nothing about or care to admit is a reality. But in order to be competitive, and with the gaining consumer knowledge on green or energy efficiency of a home these agents & firms are resorting to (GREENWASHING) by misrepresenting their property listings calling them energy-efficient when in reality they are not in order to compete with a true green Energy Star home which is only being built by Capital Home Builders, Inc. But what is the advantage they are trying to push? The answer is simple, square footage, square footage and more square footage with misleading claims.

What does this all mean to buyers looking for energy-efficient homes in Thomasville?

Simply this: Buyers looking for green or energy-efficient homesin Thomasville soon will be surprised to find limitations to their request because only one home is truly Energy Star Qualified in Thomasville, GA. With this limited selection, buyers are presented with larger square footage homes that are misrepresented by their listing agents and real estate firms as energy-efficient when in fact they are not. Buyers are being misled by their agents that are not qualified to advise their clients of the difference between the two.

Professionals lacking the knowledge of the meaning of energy-efficient homes will argue that qualified green or energy efficient homes should be comparable with other homes, and why would they be?

This is the simple analogy: For every $1.00 saved annually by the homebuyer results in a $20.00 increase in home value. So, how in the world would an Energy Star Qualified home be comparable to any standard run of the mill spec home?

Energy-efficiency and green homes are not a fairly new market like some people seem to think. Home efficiency has been around since 1996. It has only become popular in recent years because the United States has encountered astronomical energy price increases on a daily basis and has become a hot news topic and a major concern for consumers. So, this market is by no means considered new or a niche.

An Energy Star Qualified home affect prices because qualified homes are worth more than a standard spec home and appraises higher and qualifies buyers with more buying power by large lenders. Spec homes and existing homes that only offer consumers heavy millwork and more square footage are priced at a lower rate, and appraise lower.

Green Buyers

Buyers find themselves with a dilemma in their search for a green home in Thomasville. With the lack of availability of qualified green or energy efficient homes, buyers end up with the untrained real estate agent pushing (steering) a home that is misrepresented as energy efficient at a lower price with more square footage and fewer amenities in order to compete with the Energy Star Qualified home. Agents will soon convince buyers that their investment would be better spent on a larger home because buyers get more for less but neglect to tell buyers that on resale they will loss between 10-20% from their purchase price simply because the only thing they have to compete with is square footage like every other house on the market.

Sellers will hold firm on their price for their Energy Star Qualified homes and the educated buyers will recognize the benefit that comes with the prestigious blue label logo because they will enjoy the following:

Lower utility bills

Stronger construction,

Healthier indoor quality

Lower maintenance

Quieter homes

More amenities

And most of all higher resale value because contrary to what other local real estate professionals may believe or think they know about green or energy efficient homes they are oblivious to the fact that qualified green or energy efficient homes do appraise higher and lenders will provide for higher buying power. You just need to talk to an Eco Certified Agent and with a lender that provides these types of mortgages for example like Bank of America.

Unlike statements made by others that green or energy efficiency has no weight on appraisals or on lenders are mistaken and misinformed and incorrect on their statements.

They may be speaking of homes that are misrepresented as green or energy-efficient that will appraise lower because they are homes that are not documented as being true Energy Star Qualified homes and the reason why statements are made that these features have no weight.

In other words, is a Mercedes Benz equal to a Ford?

So, why would you the buyer think or expect for an Energy Star Qualified home be equal to a minimum standard spec home?

Green Sellers

A seller that owns a qualified home (by qualified I mean a home that has been rated by an independent third-party verifier) trying to sell these type of homes would contact an appraiser that has the training for appraising qualified green or energy-efficient homes in order to incorporate these values into the appraisal.

Like everything else, these qualified green or energy-efficient homes are treated differently than standard minimum spec homes. A regular run of the mill appraiser that has no training on these types of homes would not be called upon by any lender providing green or energy-efficient financing. This type of financing is called EEM (Energy Efficient Mortgages), FHA EEM’s and VA EEM’s for information log on to www.EcoHomesGA.com/mortgages.html

A lender providing buyers seeking EEM financing provide buyers with additional monetary incentives for their purchase and a larger buying power. Unlike, local lenders will soon tell buyers they do not have any idea of what you, the buyer, are talking about and that there is no such thing.

The only difficulty a green seller may encounter in a small town like Thomasville with their qualified home is hiring a real estate agent in an agency that lacks the knowledge on green or energy-efficient homes. These professionals will soon tell you their famous words “they need to be comparable” and soon tell sellers what standard square footage pricing is in the area. In other words, if you insist and provide support to the value of the home and demonstrate to them that you know more on the subject you will soon find out the hard way as your property will lack the showings oppose to other homes in your area.

Unfortunately, some real estate professionals and agencies still believe that the old ways they use to sell real estate 20 years ago still works in today’s market and sadly become upset and maybe even stumped when a specialized Realtor designation is introduced by their own National Association of Realtors as a sign that in fact this is the future of real estate and a new form of home construction.

If you’re looking for a green or energy-efficient home in Thomasville or trying to sell a home that has energy efficient features contact your local Ecobroker Certified Agent. An Agent that is certified on green and energy efficient homes and can verify for you, the buyer, claims of homes advertised as being energy efficient and for sellers the proper way to market the energy efficient features. Remember distinguishing between the both can eliminate the utility bill shock for the buyer once already in the home and the seller avoid possible litigation for false advertising.

If you’re trying to find an environmentally friendly home and why these homes are superior to standard spec homes contact Marlene Bienes Ecobroker Certified Agent @ Rose City Realty, Inc (229) 289-0139. Buyers and Sellers take the risk of being mislead and misinformed when dealing with an uncertified professional in the Green arena.

Marlene Bienes-Ecobroker Certified Agent @ Rose City Realty, Inc.

May 1, 2010