Lake Martin Real Estate Spotlight: Eagle’s Point
One of Lake Martin’s newest developments – Eagle’s Point – has a model home that is ready to see plus several other spaces for lots.
Located at the easternmost end of Coosa County Road 20, Eagle’s Point has big water views looking southeast at the junction of Parker Creek and Kowaliga towards Willow Point and Sand Island.
Density: Phase I of Eagle’s Point has a total of 11 homes planned. Each home will have and its own pier. They have already cleared out the home sites, so if you drive by boat or car, you’ll see the phase I area. The planned Phase II extends east, across the causeway towards Veazy’s Marina. There are 20 planned homes in Phase II. A Phase III of interior lots is also planned.
House Plans: Eagle’s Point offers three different house plans. There are 2 plans with 3 
bedrooms and 2.5 baths. One plan has 4 beds and 4.5 baths. All are three stories and have at least 2,500 square feet.
Builder: All the homes will be built by Lake Martin builder Sammy Ransome. You cannot bring your own builder.
Pricing: The smallest home on lots 4 and 5 go for $980,000. The 2,762 square foot 4/4.5 is priced at $1,175,000. Right now there are 2 on the MLS – lot one (a 3/3.5 and 2,762 sf) priced at $1,115,000 and lot two (4/4 at 2,762) priced at $1,150,000. Prices like these put it in a similar to other Lake Martin developments like The Ridge and Willow Point.
Amenities: Eagle’s Point will have a gated entrance, private beach, common area fire pits, community dock for guests, golf cart parking by boat launch.
Directions: Eagle’s Point is in the Coosa County side of Lake Martin, at the end of Coosa County Road 20. Google Map to Eagle’s Point
Lake Mag Interview: The Uncensored Director’s Cut
Lake Martin Magazine interviewed me a couple of weeks ago about the effect of the drought on the Lake Martin real estate market, and general trends affecting buyers, sellers, and realtors. They included it in an article called “Special Report: The Water Issue” in the November 2007 issue. I thought Nikki Reeves and Kenneth Boone did a good job of covering a huge topic.
While they didn’t publish the entire interview, they did use a couple of nuggets, and managed to add in a compliment to me. Here’s the entire interview, with the parts that Lake Magazine used highlighted in yellow:
Lake Magazine: Has the lake level affected your individual/company’s business this year in comparison to previous years? Has it done so in a positive/negative way?
John Coley: While I personally have been fortunate to have a better year in 2007 than 2006, I can’t say that for the real estate market as a whole. Through August, the number of waterfront closings per year was down 35%, from 346 to 226. I can’t help but think that a portion of that is due to the low lake level. I don’t think that it’s a majority of the culprit, though. I think the major blame for a slower market still lies at the feet of sellers who have overpriced their offerings. From 2000 to 2006 sellers became accustomed to 30% gains in value per year, and priced in 07 accordingly. The facts have shown that there was little or no value gain in 07 from 06, and some sellers have not figured that out yet. Case in point is the auction in July 07 at Harbor Pointe. They sold 25 condos in one day even though the water was extremely low, so you can’t blame it on the level. They sold them because the prices were low enough for buyers to accept.
LM: Do you think the drought will be a positive thing for the lake market - in terms of rebalancing a surplus of property and real estate agents?
JC: This is kind of a philosophical question. I think it is part of the natural free market cycle of business, so I don’t think it’s “positive” or “negative.” It’s just natural, so deal with it. Is a forest fire a “positive” experience for wild turkeys? Well, if you’re the turkey that gets burned up, no. But if you survive it and the forest in general grows more healthy because of the fire, then maybe it’s “positive” for you.
On the practical side, I do think that the lake will follow the national trend of less people joining the real estate profession over the next two years or so. The same thing happened in the tech stock boom of the late 1990s. Lots of people quit their jobs to be “day traders” or they did it on the side. The stock market crashed, and they went back to their old jobs.
There will always be room in the market for good, honest, hardworking real estate agents. In a slower market, there is less incentive for those who are half hearted or not dedicated to join up. The same rule applies in any profession. In the minds of the average American, real estate agents have a pretty low image, so I doubt we’ll see any “Farm Aid” style benefit concerts for starving Realtors.
LM: What benefits are there for buyers in the coming months? Sellers?
JC: Buyers - I think it’s a buyers’ market in every category (condos, lots, homes), so they have the benefit of buying at good prices. The only way they can benefit, though, is to actually buy. If they sit around and try to perfectly time the “bottom” - then they may miss out. Study after study shows that most “experts,” much less the average joe cannot accurately predict the perfect bottom of any market. In fact, once the public realizes that a market is on an upswing, sellers have started to gain momentum again.
Sellers - I have talked to several people that are now considering upgrading their homes to take advantage of the buyers’ market. I think another benefit is that if they price their property correctly, and either the water comes up next spring or interest rates tick down a half point, they could have some pressure relieved. The last buyers’ market in 1999 and 2000 lasted for a couple of years, if that, then it took off and ran for 7. Sellers can be confident that, if they price it right, stage it properly, and market it hard, their home will still sell. It might take longer, but a good agent can get it done.
LM: Is there a silver lining to the drought for the area’s real estate market?
JC: If Alabama Power is successful in their efforts to raise the winter level water pool to 483 or 485 as opposed to 480, that would be great. If this drought gives them the evidence they need to make the case, it will be worth it.
And if there are fewer real estate agents around, maybe there will be fewer agents’ mugshots grinning at you from signs, magazines, and mail outs. Ha!!
LM: What are your predictions/plans for 2008?
JC: If this severe drought continues, I think it will become a major, rather than minor negative effect on waterfront sales. The question in the minds of the buyer that’s new to the market, is “will it ever come back?” Veteran buyers realize we’re in an 80 year anomaly and it hasn’t bothered them that much. But 2 or 3 years straight of less than full pool conditions will start to take a heavy toll. Personally I think that is highly unlikely if you look at the rain patterns over the last 50 years. But it’s a remote possibility.
I think that most sellers will not be very negotiable in Jan 08 - Mar 08, gambling that the water will come up. They will figure, “hey, I’ve waited this long, why not wait a little longer.” I think more buyers will start to wake up and realize that the time to buy is now. For so long I heard from buyers that said “call me when that market is not so crazy.” I’m calling them now.
LM: Anything else you think needs to be included.
JC: Feel free to quote from these related posts:
Nobel Winners in Economics Say Buy Now on Lake Martin
This Man’s to Blame For the Slow Lake Martin Market
6 Crucial Changes Coming to Lake Martin Real Estate
To Predict Lake Martin Real Estate, Look West
Thanks again for the mention, Lake Mag!! (all photos in this post were taken by Kenneth Boone / Lake Magazine – Lake Martin Issue, November, 2007)
Click here for the entire Lake Magazine Article.
Nobel Winners In Economics Say Buy Now On Lake Martin
The winners of the 2007 Nobel Prize in Economics, are advising buyers to act now on Lake Martin.
OK, OK, maybe Leonid Hurwicz, Eric Maskin, and Roger Myerson haven’t come right out and literally said that, but a quick review of their work should tell you that they would advise it. Their work laid the foundation for mechanism design theory, which attempts to explain how sellers and buyers allocate resources in the real world.
Our old friend Adam Smith describes the theoretical world of free market capitalism, where buyers and sellers have perfect information. If a seller has 100 widgets, he sells exactly 100 for his lowest price and has no one asking for more. Exactly 100 buyers show up and buy them at their highest price, and no one walks away empty handed.
In the real world, however, information is not perfect. Sellers don’t know buyers’ top number. Buyers
don’t know how bad a seller needs the money. Let’s say a butcher has 20 people show up for his 15 steaks, and 5 people go home mad because of the shortage. The butcher should have raised his price to the point that he had 15 and only 15 buyers. Classic shortage strategy. Or, what if it’s the opposite? Say the butcher has so many unsold steaks that he may be forced to throw out meat. That’s called a surplus. So the butcher should lower his price and sell the steaks rather than trashing them. If steak loving buyers realized that he was dropping prices, they should get off their duffs and get down to the grocery. Simple, right? Easily applied to Lake Martin real estate, right?
FACT:
There is a surplus of Lake Martin waterfront property right now. At current buying rates, it will take 25 months to sell it all. That, my friends, is a surplus.
SURPLUS STRATEGY:
If you’re trying to sell your Lake Martin real estate, you should get realistic about prices. I am beginning to see this happen. There are very few sellers still out there that think that it’s still a booming sellers’ market. But have they learned the lesson enough to look in the mirror and lower prices on their own waterfront homes or lots? They all say “I know the market has cooled off, but…”
BuyersLake Martin buyers need to come to the table. All through 2006, the only thing I heard from reticent buyers was “call me when this crazy market slows down, I’ll buy then.” Well, I’m calling. It’s slow. Sellers are hurting. Are you going to wait until it takes off again to buy? Don’t say I didn’t warn you.
Did you enjoy this Lake Martin Voice post, and would like future ones emailed to you, spam free? Enter your email address in the yellow box at the top right and click “Subscribe.” RSS feeds available for free, too!
To Predict Lake Martin Real Estate Market Cycle - Look West
Most Lake Martin real estate observers now recognize that the sellers’ market is over, because all real estate is local. In fact, we are in a buyers’ market. For those who are in doubt - a buyers’ market means that the buyers have the advantage - IT’S A GOOD TIME TO BUY.
Market forces in real estate shift back and forth like any other market in free nations. We can learn about what might happen in Lake Martin by looking at other markets - like one of the most high end markets in the nation - Silicon Valley.
Recently I came across an excellent post by Patrick Kapowich on his blog - Silicon Valley Broker. He covers some excellent points about different parts of the real estate market cycle. We at Lake Martin would do well to read and learn.
I love his first sentence describing the changes in ’Cycle One of a Buyer’s Market’ - he says (talking to
buyers) - “Listing Agents return your calls.” Hilarious, but true! Great work, Pat.
2 or 3 Thousand Expected at The Ridge Showcase of Homes - Lake Martin
Russell Lands is hosting the “Annual Showcase of Homes” at its newest Lake Martin development – The Ridge.
The showcase is happening over two weekends – September 15 and 16 as well as September 22 and 23, 2007. Many of the builder spec homes that are for sale will be open to the public to tour. Russell Lands is also having the Grand Opening of The Ridge Club on September 15.
I am not sure which or how many of the The Ridge spec homes that are currently for sale will be in the Showcase. By my last count on the Lake Martin Area MLS, there are about 35 homes and 8 town homes (The Ledges at the Ridge) for sale right now in the Ridge. In the Spring Home and Boat Tour, (the last “parade” they did) I think they had like 14 or so homes available.
According to their press release by Schroder Public Relations, Russell Lands expects between 2,000 and 3,000 people to come through these two weekends.
Would you like a friendly, unbiased, neighborhood realtor to help guide you through the festivities? Drop me a line and I would be glad to help.
6 Crucial Changes Coming To Lake Martin Real Estate
As the Lake Martin real estate market shifts to a buyers’ market, away from sellers, what does this mean? If you are about to sell or buy waterfront property, how can you use this to your advantage? What changes can we expect? We can guess a few possibilities from studying other markets around the nation that have been experiencing this phenomenon for a longer period of time. I’m not saying that all of these will happen, but they are strong possibilities:
1. More pizazz from sellers - there are 5 times as many waterfront properties for sale now as there were in 2005. More competition means Lake Martin sellers need to do more to get noticed and get paid. Some examples:
a. more pictures - too easy not to do it
b. home staging- a must
c. talking homes - look for a sign on the home that says “tune in to FM XX.X for more info” where a commercial is played over and over
d. text message info for homes - like the talking homes above, they have a “for more info text #12345″ rider on the sign
2. Builder incentives to buyers - Builders who have extra spec homes sitting unsold are always among 
the first to slash prices. Some Lake Martin builders have already started doing some of the below:
a. free TVs
b. free boat storage
c. pay for first 3 months’ mortgage payments - haven’t seen this one yet, but just wait
d. extra commissions (above the 6%) to the realtor that brings the buyer. As a buyer, you need to ask your realtor if such an incentive exists. Not that that would affect your agent’s impartiality, of course……..
3. Less downward pressure on realtor commissions - A buyers’ market exposes the pretenders from the listing agents that really know how to market. If the sellers feel that they can pay the popular 6% in commission and have their waterfront home sell, instead of languish unsold for a year, they are less likely to go for the cheapest “low bidder.” In the Lake Martin sellers’ market up to 2005, sellers had so much influence they could almost name their commission. Not so now.
4. Proliferation of buyers’ agents? Since buyers hold the cards on Lake Martin now, many agents may shift their marketing focus to buyers. Some agents may even pitch themselves as exclusive buyers’ agents, refusing to list homes for sellers. In extreme buyers’ markets in other locations, they even go so far as to advertising that they will give part of their commission as a rebate back to the buyer. Could this happen at Lake Martin? It’s possible, but doubtful, I think.
5. Reduction in effective FSBOs - FSBO or For Sale By Owner - (pronounced FIZZ-bo) - again, in a sellers’ market, it was a lot easier for Lake Martin waterfront sellers to go it alone. Stick a sign in the yard, and get twelve offers tomorrow, right? Now that there is more supply out there for sale, it’s a lot harder to get it done, even for agents. See #1 and #3 above.
6. No change in BUDDY-BOs - I define “buddy bo” as sales by owners directly to that buddy or relative 
that told them “hey - if you ever sell that house on Lake Martin, let me know.” OK, so it’s not a change. But maybe the lack of change is crucial. These type sales are not as dependent on market conditions so I really don’t see a huge change here.
Did you like this post or others on Lake Martin Voice? Don’t take a chance on missing one. Enter your email address in the yellow box at the top right corner of this page and click “Subscribe.” You will be emailed a note every time I have a new post. Don’t worry, I hate spam as much as you do.
2007 Is Russell Lands’ 2nd Best Year On Lake Martin
This year has been good to Lake Martin developer Russell Lands.
Broker Steve Arnberg was interviewed by the Opelika – Auburn News recently about the sales trends on Lake Martin. Arnberg said that, while low water levels on Lake Martin had affected sales, this year was still strong enough to qualify as their second best.
Arnberg is quoted as saying “It’s not as good as last year and we can’t necessarily say why, but (sales) are as good as the year before.”
I assume that means that Russell Lands has sold about the same amount of Lake Martin waterfront property this year as they did in 2005, but not as much as they did in 2006.
My questions on this:
1. What do you mean by Lake Martin “sales?” Does he mean the dollar value of total sales? Or the number of waterfront lots or homes sold?
2. Why can’t he “say why?” I have already written in earlier posts about the number of Lake Martin waterfront sales declining in 2007, and that I think it is mostly related to over pricing by sellers. Does he disagree, or has he not figured that out?
3. Why doesn’t Russell Lands publish its sales figures for Lake Martin? The entire Lake Martin 
market is down 35% from last year, yet Russell Lands is having its second best year. How? I realize that they sell plenty of waterfront lots that they don’t publish in the MLS. For instance, when they opened Phase III in The Ridge, they sold lots to buyers themselves, so the data doesn’t come through our MLS. I affirm their right to do that. It’s very possible that they sold so many of their new Ridge lots that they are having their second best year ever. So why not publish, or at least mention in this interview, what they mean by “second best year?”
Russell Lands is far and away the biggest developer on Lake Martin. Naturally, as they own one half of the 700+ miles of shoreline. I’m not so nosy to think that they should tell us every penny that they spend and make. They are a private company. But, I do think it would be helpful if they gave general sales totals in number of properties sold and dollar value thereof. For instance, they could say that they have sold 40 of 100 lots in the new phase of The Ridge at an average price of $600,000. It would shed more light on the reality of the Lake Martin real estate market, and therefore benefit them, as they are this market’s biggest landowner.
Lake Martin Real Estate Spotlight: The Ridge Update
The Ridge – Russell Lands’ newest Lake Martin development – is near to completing its Ridge Clubhouse and Pool Area, while Phase III construction is ramping up.
I popped by The Ridge last week to look at some lots in Phase III. Phase III – which stretches south towards the Dixie Sailing Club, which is Lake Martin’s largest sailing organization. Phase III already has a few spec homes on the MLS, and builders are already started a few custom builds.
Originally, Russell Lands had planned to move Dixie Sailing Club out of The Ridge to their new digs by Labor Day 2007. But this letter from Russell Lands General Counsel Steve Forehand has forestalled that trail of tears until Labor Day 2008. Maybe they made this decision because sales in 2007 have not been as brisk as 2006. Who knows. The fact is, the old salts at DSC have one more year.
While I was checking out the view of Lake Martin from some new lots at The Ridge, I stopped by the Ridge Club to see how construction was going. As I stated in this earlier post, I really must say that The Ridge Club will be very nice when they are done. The pool area is comparable to many area country clubs, with a resort style, multi leveled, no sharp angle feel.
Inside The Ridge Clubhouse will be nice, too. I am a sucker for big stone and big wood, and the architecture in here looks like something out of Rohan. I’m loving it.
Check the numbers here; now is a great time to be a buyer in The Ridge. Need help?
Related Posts:
Free Boats at The Ridge Boat Show & Spring Home Tour
Lake Martin Real Estate Spotlight: The Ridge
This Man’s To Blame For Slow Lake Martin Market
The Lake Martin real estate market has slowed way down - it’s no longer a sellers’ market. Who is responsible?
One man - Adam Smith.
In 1776 Smith established himself as one of the most influential economic philosophers when he penned Wealth Of Nations. He described the natural economic forces that have existed since the caveman wanted to trade his neighbor one rock for two bones. OK, so maybe he’s not responsible for the slowdown, but he was the man who so eloquently described what is - Supply and Demand.
That’s right - the Lake Martin real estate market has slowed down because of simple supply and demand. Not because of the drought. Not because of the Army Corps of Engineers, not Alabama Power, not Russell Lands. Mr. Smith’s omnipresent Invisible Hand has suppressed the number of waterfront closings. In the 12 months before August 1, 2005, there were 386 waterfront closings. In the 12 months before August 1, 2006, there were 346. In the last 12 months, that number is down to 226. Looking back, the summer of ‘05 was the peak. Face it. There are fewer waterfront closings this summer. But why? In a free market, the more accurate question to ask is always ..
What has affected supply and demand?
SUPPLY:
Easy explanation here. Waterfront property has been on an unprecedented run since 1999. Prices have skyrocketed. Whether we’re talking waterfront property or widgets, more people are willing to sell at higher prices. While supply will always be fixed (Lake Martin ain’t gettin no bigger), the quantity supplied this summer is higher than in 2005. At the peak of the sellers’ market in 2005, there were only 126 waterfront properties for sale. Right now we have 603. Per se, that might not contribute to a slowdown, but when taken in conjunction with…..
DEMAND:
As inseparable as yin and yang, you must consider both supply and demand in any free market evaluation. 
So where are all the Lake Martin buyers? Anyone could tell you that they must be scared away by the increase in prices since 1999, but is it a true downward demand shift? Are fewer buyers interested in Lake martin waterfront property now? Or is it simply a decrease in quantity demanded?
Has the drought, low lake levels, and high prices removed buyers from the market? Is that why there is a surplus? I think not. Anecdotally, I am talking to more buyers now than I was in 2005. Buyers that I talk to are not phased by the low lake level. They understand that it is a 50 year anomaly. Sure, I think that the drought has affected it some, by removing potential buyers out of the pipeline before they ever talk to realtors. But I don’t think it has affected demand that much. So I don’t think we’re experiencing a demand shift.
I think the Lake Martin buyers are still out there. There are still plenty of folks who want waterfront real estate, but they want it at lower prices. Case in point: the condo auction at Harbor Pointe. 20 waterfront condos were sold in three hours, when in the previous 12 months, only 34 had sold on all of Lake Martin. Why? Price. The exact same condos that were listed on the mls at $420,000 sold at the auction for about $250,000. This jives with my anecdotal evidence - from talking with buyers. Plenty of people want to own Lake Martin real estate, but not at a crazy price. This extends across all market segments - lots, condos, deeded lot homes, and leased lot homes.
SO WHAT?
So what does this mean? It means that buyers can exert their influence more strongly, by seeking out better values with research. Don’t expect prices to return to the 1990s. But buyers can find decent buys if they know how to research and if they let a good realtor help them. Click here if you need help.
Lake Martin waterfront sellers need to get realistic. Don’t price things based on what you wish you could get - check the numbers on sold comparables. Hire a good realtor (read: me) that will aggressively market your property - and it will still sell, trust me.
Related Posts:
Proof Of End Of Selllers’ Market On Lake Martin