My New Blog

This week's blog addresses a specific question about historic home pricing. 

Someone recently asked "Are homes in the College-Temple Historic District in downtown Newnan retaining their value?  It's difficult to compare values of renovated historic houses to new houses."  Here's my answer:

The true challenge in determining the value of a specific historic Newnan home lies not so much in comparing it to new homes as it is in comparing it to other historic homes. As is the case in all real estate markets--In downtown Newnan, it's all about location, location, location. Whether your house faces Washington, College, or one of the "less restored" streets as you move farther away from The Square makes all the difference.

Another factor is condition. With historic homes, it's not enough that the house be in great condition. Any renovations must have been done so that the charm and character of the property were not lost. Examples would be: were the hardwood floors stripped and refinished or was laminate installed? Was the wood siding repaired and painted or was vinyl siding installed? To achieve optimal historic property value, laminate flooring would not be acceptable, at least not in the main parts of the home, and vinyl siding should be used very minimally (fiber-cement siding would be a better choice).

The diversity of the prices of the homes is unbelievable. I've done market analysis that included two historic homes within a two block radius of West Washington--one comparison property sold at over $200 / per square foot and the other at only about $50 / per square foot.

If you are thinking of buying a historic home, look to your realtor to guide you on concerns about value over the long term. Ride by the property at different times of the day and WALK from the property to the areas of downtown that you most enjoy. You should also DEFINITELY do a home inspection--not just to identify any defects or safety concerns, but to make sure that you'll know about the quality of any restoration work that might have been done to the house.

If you are thinking of selling a historic home, make sure that any value assessment of the home includes homes that are as similar to yours as possible. Don't consider comparables that are "on the other side of The Square" from your home, or in states-of-renovation that are very different from your home, to be included in the analysis if you can help it. It's very much a case of individual case basis, and you must do your homework.

One more note: I may be a little biased, but Newnan has one of the most charming downtown communities around! With the ecclectic shops, the great restaurants (who can deny that Fabiano's pizza is some of the best in the South and let's not forget that Andre's on the Square is an honest-to-goodness 5 star restaurant), the architecture of the old courthouse and the many churches, it's easy to understand why it's so beloved. This Old House Magazine even named Newnan's downtown in the top 100 in terms of appeal of our historic homes. Still, this area of the Coweta County market has not been exempt in feeling the downturn in the real estate market.

Good luck out there!

The question was recently asked:  "Which cities appreciate best as far as home markets among Peachtree City, Senoia, Sharpsburg, and Newnan?  People say that ranking for East Coweta High School is getting better and better and will be the best in the future.  Is it true?  Is Peachtree City also going to be among the best in the future?" 

Here was my answer:

East Coweta High School has made great improvements and should continue to do so based on the strong supporting tax base that is found in Summergrove and other ECHS subdivisions, including up-and-coming developments in Senoia. To say that they will be "the best" may be a little longer term prediction, but not out of the realm of possibility.

Peachtree CIty schools are already there. As a result, Peachtree City values have been less affected by the downturn in the market, so it's more challenging to acquire a property "for less" there. That doesn't mean that the properties won't appreciate in PTC, just that they are more likely to appreciate at a more moderate level since you probably won't be able to pick them up at huge discounts.

I attended a realtor focus group where every realtor was asked to rank "affluence perception" of all of these areas. Peachtree City, was of course, at the highest end of the scale, and Senoia was at (at the time, and that's been just over a year and a half ago) the lowest. Sharpsburg was second and Newnan was third. However, I think it's extremely important to consider what is happening in Senoia (Riverwood Studios, downtown revitalization, lots of clever marketing that positions it as a "folksy-hometown-cultural-"bright-spot") when you are factoring in possible appreciation there.

Even so, Senoia continues to be a speculative play, since it still has the "rural and remote" perception that does not necessarily attract a commuting clientele. After all, it's that remote and rural image that caused the realtor community to report that their clients think of Senoia as less affluent. Still, with the attention that the movie industry is bringing, along with the glossy feature in a well-read, well-respected magazine, Senoia could be an excellent opportunity for growth and appreciation.   Just think of all the phenomenal improvements that have already been made in this up-and-coming community!

Ultimately, any property you choose to buy should include an EXTENSIVE consideration of what fair market value is for that specific property. Watching area trends is an important first step, but it's only part of the equation.