KG Real Estate--Local Agents Shed Light

I occasionally hear that because of my blog, local realtors are avoiding Kahler Glen, and that the blog has played a role in reducing property values or preventing sales.  Not knowing whether or not these concerns are true, I decided to call local realtors in the hope of learning more about the local real estate market.

I spoke with 7 realtors from the following agencies:

• John's Real Estate
• Prudential Mike West
• Icicle Creek Homes
• Leavenworth Properties
• Leavenworth Real Estate
• Windermere
• Lake Wenatchee Properties

A Quick Summary

• Four of them had not heard of the KG blog  
• Four were aware of KG's growing pains, and all said that it's common for communities to have conflicts.  
• At least four of them are currently listing agents for at least one KG property, and all said that the blog had no influence in setting price. 
  
• All of them enthusiastically show KG properties to prospective clients. 

• Two offered, without prompting, that more detailed information about a community is good for sales, especially since realtors would likely be aware of rumors anyway--i.e. a vague future is more difficult for a buyer to calibrate than specific issues with potential outcomes that are easier to understand.
  
  
• Two agents mentioned that a worst case scenario for them would be to sell a KG property, only to have the buyer call three months later and suggest that the realtor should have known about the issues, and should have provided more information about the circumstances.
  
  
• The realtors who are actively listing KG property are local to this area.  They have clients and/or friends who are KG owners, and hear about KG's issues from these and other sources.  Additionally, because our CA Board minutes are available to the public, both realtors and potential buyers can easily learn about our biggest problems from the community web site.  Hence, our core issues are no secret.

I've heard one rumor that goes something like this:  just before closing, a cash deal on a property was killed because the buyer had read the blog.  The listing agent for the property told me that in the 2 years it was on the market, no acceptable offer had been made, so there was no basis to the rumor.

Universal Market Analysis

All of the realtors offered the same analysis of the market:

1. The single, greatest challenge to selling property is an inventory glut--one realtor said that inventory in the area has grown more than 30% in the past 18 months.  A surplus of inventory means that:
   
   
• Psychologically, buyers don't feel like there's any hurry, so they delay making a decision.
  
• Pricing declines because of competition and price wars
  
  
2. The economic downturn has had a major impact on the purchase of second homes.
   
   
3. Condos all around the area have been hit hard.  The market is seriously challenged, and a price war is driving prices down.

Realtor Comments About Dues

Realtors have mixed views on the effect of association dues on condos.  Two of three who were asked about dues said it was a significant issue.  At least one agent believes that a measurable increase in dues could be a significant blow to condo sales.  One agent went on to say that a recent client who toured a KG condo, also visited "no exaggeration, at least 30 other properties."  Another agent said that the overall lack of lookers suggests the problems are more economy/market driven...suggesting that competition is fierce and buyers are flighty.


Questions Answered by Those Familiar with the Blog

I had a few questions for realtors who were familiar with the blog:

1. If the blog disappeared today, would it improve the sell-ability of property?
2. Have you had any clients who were interested in a KG property, but then pulled away or lost interest after they read the blog?
3. Is it any more difficult to sell KG properties than competing properties in the area?

None of them have had a client mention the blog, and all offered no reason to believe it's departure would help sell property.  What they said is that the market is brutal everywhere.  In comparison to other neighborhoods, the fate of the golf course and potential dues increases add an additional level of challenge to selling KG, and information about these issues is readily available without the blog.

The Blog Effect

One realtor told me that he sold properties in other neighborhoods at times when they were embroiled in lawsuits.  He said the buyers had access to enough information to calculate their risks, and to make informed decisions.

None of them could cite an experience where a potential buyer asked about the blog.

All of them say that while community blogs are a focal point for members, in the context of a weak economy and difficult market forces, there's no evidence to suggest that they influence sales activity or pricing. 

As an aside, it's worth noting that the County Assessor significantly devalued our property last year, and the reduced value was based solely on market conditions.