Drive up and down Hwy 41 or Dallas Hwy and you will quickly recognize the continued growth that our West Cobb community is experiencing. New home construction in the West Cobb/Paulding area is at an all time high and not slowing down anytime soon. The "American dream" is to build bigger with more amenities and that is certainly the case with communities like Bentwater, Seven Hills and several medium sized developments under construction.

Does all this new residential construction growth affect my ability to sell my home? The answer quite simply is YES! The number of resale homes on the market is at an all time high in the metro Atlanta area. Different sources indicate different reasons, however, we believe it comes down to a few fundamental issues:

• Current economy and interest rates: As prime hit its peak of 9.5% in January of 2001 to a record low of July 2003 of 4.0%, we watched how the Federal Reserve and Alan Greenspan positively impacted the lending markets. This along with newly designed alternative creative financing such as ARMs and interest only products resulted in a huge demand in borrowing and refinancing. It was not until the Fed began to raise rates in July of 2004 that this affected the flow of money being borrowed in the consumer markets. As rates have continued to rise, demand for refinancing and upgrading from small to medium size homes has decreased. This resulted not only in an increase in the number of days a home is on the market but also a real rise in volume of existing real estate inventory.
  

• Population growth and current land use: Cobb County continues to grow, as indicated by the Census figures of the last ten years. Consumers such as you and I have become much more knowledgeable and our expectations and requirements in the features and amenities we want in a house and neighborhood have increased. The builders new theory "if we build it, they will come", has resulted in homebuilders and developers offering features and amenities that only the rich and famous could afford years ago. The ability to market the benefits of your home and accentuate the features and feel of a new home can make the difference.

• Offering incentives: As sellers want to get the best selling price, purchasers want to get the best buying price. A great way to be more competitive as a seller is to offer incentives and compensate the purchaser for closing costs, home warranties, decorating or landscaping allowances. These are all great ways to entice a potential purchaser to select your home over new home options they may be considering.

Existing home wear, décor and curb appeal are the top 3 items that affect most purchasers' perception. Homes in the 2 - 5 year old range have less wear and tear, are current with the trends and typically are recently landscaped or groomed and have the greatest chance of competing. Existing homes in the 6 - 11 age group typically require some sort of evaluation to determine what are those things that are going to require consideration in order to compete. Homes greater than 11 year old typically require a full evaluation to determine the neighborhood standard and how we can get that home to stand out. Simply stated the answer is YES, you can compete.

The current condition, cleanliness and decor of your home all have a very large impact on how your home will compete with a new home, and this of course also affects how you set your price. In my next article, we will discuss "How to complete that home evaluation- I want to compete!"