January 2009 Issue

    INSIGHT

    THE REST OF THE STORY

    Radio legend Paul Harvey (he's still broadcasting by the way) is known for his captivating tagline: "...and now you know the
    REST of the story." That's our role at the ST SIMONS letter ... to peel back the layers of the real estate onion and show people
    what's going on behind the scenes. To point out the obvious and especially the not so obvious.

    For example, if the only reports you read in the ST SIMONS letter are "Transactions" and "Market Conditions," you might
    leave with a bad taste in your mouth (if you're a seller). But if you peel back another layer and read "Warranty Deeds," you get
    to taste some of the sweet part of the onion.

    The difference is, "Transactions" and "Market Conditions" are based on MLS reported sales. In order to make it on those
    reports, a sale must have been listed by a licensed Realtor(R) and advertised on the local MLS. But MANY sales occur outside
    the MLS. For example, Sea Island Company transactions rarely show up on these reports because the company marketing
    strategy does not include traditional MLS listing as a component. Likewise, a FSBO (For Sale By Owner) offering is not
    captured by the MLS.

    The place to find these transactions is by looking at our "Warranty Deeds" report. Whenever a real estate sale is made (with
    few exceptions), a deed is filed at the county courthouse and a transaction fee of $1 per thousand is paid. These filings are
    compiled and published in "Warranty Deeds." By studying this report, you see not only the MLS transactions, but also the
    sales that occur "under the radar" so to speak. You also see the names of the buyer and seller, the price, and the property
    description. It's fascinating reading if you want to know what's really going on in local real estate!

    In December there were 174 warranty deeds filed in Glynn County. 23 of them were sales for over $1 million ... the sum of
    which totalled more than $46 million. Surpisingly, none of them were MLS sales. So if you study MLS based reports as sole
    indicators of real estate activity, you would be missing some very important information not to mention some of the best water
    cooler gossip in all of Glynn County.

    The MLS based reports are invaluable in studying traditional real estate activity. The historical information available has
    substantial weight. And the ability to compare time periods helps form logical conclusions about the general state of the
    market.

    But don't forget to study the reports based on court filings: "Warranty Deeds" and "Foreclosure Deeds." Only then will you
    know the REST of the story.
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