To say that the Atlanta Real Estate market has been a bit tough over the last several years may be a bit of an understatement. While virtually every segment of the market has suffered to some degree, I don’t think any segment has suffered any more than New Home Builders. While costs continued to escalate the market has driven pricing down and that is a recipe for disaster. According to The Home Builder Implode-O-Meter, since late 2006, 83 major national home builders have imploded. Numerous local builders throughout the nation have experienced similar fates.

Having talked to builders about the Atlanta Market an interesting common denominator was expressed. Several stated that it very well could be more cost effective to not build and wait out this market opposed to fighting the rising costs and lower selling prices. The effects of this position on local economies can be devastating. Think of all the people that this puts out of work, even if it is only for a short period of time…Grading Contractors…Foundation Contractors…Framers…Plumbers…Electricians…Sheetrock Contractors…Trim and Detail Craftsmen…Painters…Landscapers…and the list goes on. What effect does it have on local businesses if these people don’t have an income? I’m going to guess that it is not very positive.

In this economic climate it is important to recognize those who elect to continue to do what they do best, build homes. Even if the return on investment is not what it was several years ago, The Providence Group made what I think was a wise business decision earlier this year. They didn’t stop building quality homes they just slowed the pace a bit and then held their “Absolute Sale at Bank Pricing” promotion. The promotion was a huge success that allowed them to sell existing homes and even better it allows them to move forward with new construction. They have obtained 55 new building permits this month and currently have active construction in several communities. Statistics for the third quarter show that The Providence Group out performed several of the larger national and regional builders based on the number of closings in the quarter. Congratulations Providence Group, Ya’ll Done Good!

Last Night I received an email from Bryan Cohen, current President of Touchstone Homes announcing that he was leaving Touchstone to pursue other interests.

After 24 years of affiliation with Touchstone Homes and United General Industries, I have decided to pursue a new, exciting career opportunity.  Effective January 2, 2009, I will become President/CEO of Quantum National Bank in Suwanee, where I have served as a Director for 6 years.  My decision was extremely difficult, for so many personal and professional reasons.  However, this is a unique and compelling career opportunity that I could not pass up; which without my invaluable experience at Touchstone would not have come my way.

I will work with the very talented executive management team of Rick Stein, Jeff Abraham, and Mike Zambri to assure that we have a seamless and effective transition. Touchstone Homes has excellent people, systems and procedures that have helped it earn numerous honors over the years, including: Many Obie Awards by the Atlanta HomeBuilders Association; The 2006 and 2008 Best of Gwinnett Award; most importantly the coveted America’s Best Builder Award for 2007 and the Lee Evans Management Award for 2008.  I have complete confidence that, in spite of the challenging business environment we are all experiencing, Touchstone Homes will continue to flourish.

I would like to thank everyone for their support during my years at Touchstone. I wish for the Touchstone Family all the success in the future and will always relish the experiences we’ve shared together.

Bryan Cohen
President
 
For anyone who has had any association with Bryan during his tenure at Touchstone Homes I know you will want to join with me in wishing him well.

John Wieland Homes has recently been awarded the J D Power New Home Builder Customer Satisfaction Award for Atlanta. This is the second year in a row for John Wieland to receive this prestigious award. J D Power uses nine factors to evaluate home builders: Builder’s Sales Staff, Builder’s warranty/customer service staff, workmanship and materials, price to value ratio, home readiness, construction manager, recreational facilities provided by the builder, Builder’s design center and location. The composite of these nine factor generate the “Overall Customer Satisfaction Rating”. For more information on how builders in the Atlanta Market rated in this study Click Here.   

Congratulations John Wieland Homes, Ya’ll Done Good!

As of July first of this year all builders and remodelers in the state of Georgia are to be licensed by the State Licensing Board for Residential and General Contractors. There are three types of contractors that must obtain a license by July 1, 2008.

*  Residential-Basic Contractor (Contractor work relative to detached one-family and two-family residences and one-family townhouses not over three stories in height).
* Residential-Light Commercial Contractor (Contractor work or activity related to multifamily and multiuse light commercial buildings and structures).
* General Contractor (Contractor work or activity that is unlimited in scope regarding any residential or commercial projects).

A fourth classification of contractor is the specialty contractor who is not required to be licensensed. This classification would include painters and roofers for example and they are not allowed to hire subcontractors.

I would think that the purpose of this law would be to help protect innocent homeowners and home buyers from unscrupulous contractors. We have all heard horror stories about homes and projects that have not worked out as originally planned. One big advantage of this law is the requirement for contractors to meet minimum standards for education, financial stability and workers compensation.

So what will the down side of this law be? Since Atlanta is so close to Florida, some of what happens there makes its way to our news programs. When a major event such as a hurricane hits Florida, it can sometimes take additional time to even get bids on getting work done much less getting the work itself performed.

At the recent RE/MAX Around Atlanta awards breakfast I had the privilege of meeting Bryan Cohen, president of Touchstone Homes. While acknowledging that the housing industry in Atlanta is in a slow down, especially from a new home builder’s perspective, Mr. Cohen spoke about what he and his company did during this time. While the natural tendency may have been to pull back and wait for better economic times, Mr Cohen and Touchstone Homes elected to take a proactive approach. Looking forward, Touchstone Homes elected to utilize this slower time to totally update their state-of-the-art Design Studio that is located in Suwanee. Touchstone Homes realize that purchasers want to personalize their home with the various products and finishes that will make it unique.

America’s Best Builder – 2007

Taking a proactive approach to their business, although not officially one of the categories, could be one of the reasons that Touchstone Homes was named America’s Best Builder for 2007. For more than a decade Builder Magazine and the National Association of Home Builders have recognized the best builders in the nation. Builders are judged by a panel of ten industry experts on finance and operations, customer service, design and construction, quality and marketing. Congratulations Touchstone and keep up the good work.

So you have decided to build your new dream home. How do you find the right builder? Are you just going to leave it to chance? I hope not. You are preparing to make what is possibly the largest purchase you will ever make. As a buyer you owe it to yourself to practice your due diligence and find a builder who is qualified to build your dream home as well as being someone that you can communicate with about your wishes and desires in your home.

In the Atlanta Real Estate market, the most common ways for a buyer to find prospective builders are via the internet, their REALTOR, word of mouth from their family and friends or from the local Home Builders Association. Once the candidates have been identified the buyer and their buyer’s agent should begin the due diligence period by asking questions to determine the best fit. Here is a list of possible questions to ask:

• How long have you been building homes? (You are looking for 3+ years)
• Is your primary source of income derived by homebuilding?
• What insurance coverage’s do you carry? (You are looking for general liability, workman’s comp, and builder’s risk.)
• What is your primary source of information regarding changes in building codes? (You are looking for trade associations such as the home builder’s association or various continuing education classes)
• What is your written warranty on the homes you build and can I have a copy of it to review?
• What is your policy on home inspections? (You must be allowed to use a code certified inspector)
• Will you provide me with references from your homeowners?
• Due to today’s economic time and the state of the real estate market, would you be willing to share your financial information with us?
• Why should we select you to build our home?

While these may not include every question that you may need to ask, it should provide a good start. Even if the home you are looking to purchase is already started and at some stage of completion you should still ask questions of the builder. After all you are interviewing as an employer. You are hiring someone to build your home.

The Providence Group is growing again. Mark your calendar for the 25th of March for the Grand Opening and ribbon cutting ceremony at the covered bridge which is located in the Historic Concord Covered Bridge Area of Smyrna. Special guests Mayor Max Bacon, City Council Representative Pete Wood and Harold Smith of the Smyrna Historical Society will be joining Pete and Warren Jolly of Jolly Development in commemorating the opening of the covered bridge.

Woodbridge Crossing is a gated community of upscale single family courtyard and garden homes priced from the high $300’s to the mid $500’s. The community offers swim facilities, an outdoor seating area with fireplace and a clubhouse with a full kitchen. The HOA provides landscape maintenance for all homeowners leaving more time to enjoy the rich history and entertainment available in the area.

Individual homes feature carriage-style garage doors along with brick, siding and stone on the exteriors. However the interiors design features are what sets these homes apart. Gourmet kitchens with granite counter tops, tile back splashes, custom cabinets and stainless appliances are just the start. The main level of each home includes 8 foot doors, hardwood flooring and detailed trim packages. The large Master Suites feature luxurious bathes with separate garden tubs and walk-in showers.

To view available homes in Woodbridge Crossing click here

Alderwood on Abernathy

Priced from the mid $400’s to the mid $600’s Alderwood on Abernathy is a bargain for a townhome community in the trendy Sandy Springs area of Atlanta. An air of sophisticated spaciousness greets all homeowners and guests as they enter the community. Standard features at Alderwood on Abernathy include site finished hardwood floors, hardwood stairs with iron balusters, upgraded trim packages and gourmet kitchens with granite counter tops and stainless steel Kitchen Aid appliances. The oversized master suites provide the owners with an ideal area to unwind in the jetted garden tub and also include his and her vanities, frameless shower doors and granite counter tops. Some of the properties include an optional elevator.

Even though the grounds are landscaped to the max, homeowners enjoy the lawn and exterior maintenance being included with their monthly association dues. Also included are streetlights and sidewalks. Additionally homeowners will soon be enjoying an outdoor gathering area with a covered fireplace, water feature and seating area.

Great Location

Alderwood on Abernathy is conveniently located on Abernathy Road just off GA 400 and only minutes from award winning shopping, dining, and entertainment. Children in the community will attend Spalding Elementary, Ridgeview Middle and Riverwood High schools.

To see current available homes at Alderwood on Abernathy click here.

Convenient Location

Conveniently located just minutes from GA 400 and the North Point shopping area of Alpharetta is the Enclave at Milton Park, a maintenance free luxury townhome community by The Providence Group. Community amenities include a lake, gazebo, sidewalks, streetlights and access to the Alpharetta Big Creek Greenway, which features over six miles of walking and biking trails, for homeowner enjoyment.

Luxury Appointments

Each of these 2 and 3 bedroom townhomes features a detailed trim package, 9-foot ceilings, hardwood flooring, Victorian style windows and marble trim around the fireplace. Entertaining is made easier with gourmet kitchens which are appointed with granite counter tops, stainless steel appliances, and separate gas cook tops. The master retreat of each home features a trey ceiling, his and her vanities, large garden tubs and separate tile surround showers.

They Are Going Fast

In just over one year the Enclave at Milton Park has sold more than 50% of the 74 home sites that will be built in this community. One of the first homeowners, Vickie Scaffe, selected the community for it’s abundance of green space and the convenience of being close to everything. She stated that she can ride her bike to the park, church or even to North Point Mall.

To view available homes at The Enclave at Milton Park just Click Here.

The name Terrasol is derived from the Latin terms for "Earth" and "Sun". How fitting for this earth friendly new community in the highly acclaimed Brookwood High School district of Gwinnett County. The community when complete will be comprised of 128 upscale single family homes, a community center, a free-form pool, play area, four ALTA approved tennis courts and an outdoor fire pit. As if that wasn’t enough, in keeping with the earth friendly theme of the community, more than 40% of the land will remain in its natural state and there will be a natural walking trail over a mile and a half long. The wooded home sites in Terrasol will be generous in size and many will border either the Yellow River or the over 30 acres of preserved woodlands.

Great Gwinnett County Schools

Children living in Terrasol are fortunate to be included in some of Gwinnett Counties finest schools. They will attend Gwin Oaks Elementary, Five Forks Middle and Brookwood High schools.

Developed By Vesmont

Terrasol is being developed by Vesmont, LC. In keeping with their commitment to environmentally friendly building practices, Vesmont will construct the amenity area and the community center utilizing EarthCraft building methods and design principles, much as they accomplished with their Oak Grove Preserve community inside the perimeter near Lakeside High School. Vesmont, LC is a real estate investment and development company that specializes in developing residential and mixed use communities for quality builders as well as today’s home buyer who is looking for a community-based lifestyle in an upscale home.

For more information about Terrasol and lot or home availability contact Mack.