RETURN TO HOMEA Conversation with Cleve Gaddis of Gaddis Partners at RE/MAX Center in Johns Creek, GA
Home to over 70,000 residents (35% of which are under 19 years old), Johns Creek is the 10th largest city in the State of Georgia. According to a recent Bizjournals study, Johns Creek is also Georgia’s wealthiest city and the 95th wealthiest in the nation. Additionally, Johns Creek residents are well educated, with 44% of the population 25 and older having earned bachelor’s degrees and 22% holding master’s, professional or doctorate degrees. Johns Creek residents are very generous, consistently making sizeable contributions to area charities and non-profit organizations.
People
People want to live in the Metro Atlanta suburb of Johns Creek for two simple reasons – quality of life and excellent schools. More than 100,000 people relocate to Atlanta each year for the warm weather, relaxed lifestyle, employment opportunities, lower cost of living and the Southern hospitality. Families are further drawn to the city of Johns Creek, which was incorporated in 2006 and is one of Georgia’s newest cities, because the residents of this bedroom community share common values and have created a community with less-dense development (more green space) and consistent aesthetics. Simply put, it’s a clean, green and good-looking city that provides a relaxing and friendly atmosphere. Local residents have long been deeply engaged in the planning, zoning and development process and have set very high standards in these areas. It doesn’t take long after arrival for newcomers to realize they are someplace quite special.
There are many recreational opportunities within the city as well. With five private and public golf courses and golf communities located within the city borders, you’re never far away from your next tee shot. Johns Creek is home to the Southeastern Lacrosse Conference Championship and the Atlanta Athletic Club, which is home to golf’s legendary Bobby Jones. The Club will host the 93rd PGA Championship in August, 2011. The city features a nature preserve, three public parks and three National Parks Service Chattahoochee Recreation Areas along the 17 miles of the Chattahoochee River that border the city. The multi-use pathway system is continuing to grow each year, offering more and more opportunities for people to walk to nearby community amenities or just for exercise. Johns Creek is also located just 30 minutes from Lake Lanier, which features over 700 miles of shoreline, a handful of marinas, parks and golf courses, four-star hotels and plenty of open water for sailing, skiing, boating or any other water sport you might enjoy.
Our Town
Located just 20 miles northeast of downtown Atlanta, Johns Creek was not always the populated suburban area it is today. It was once a meeting ground between the rival Cherokee and Creek Indian tribes that inhabited North Georgia. It was considered a safe, neutral area during peace talks. During the early 19th century, trading posts began to spring up along the Chattahoochee River, which runs along Johns Creek’s southeastern border, and the small farm towns of Newtown, Ocee, Shakerag and Warsaw also sprouted up in the area. The pioneer families that lived near the trading posts and in the farm towns are still commemorated today in many street names throughout the city. Even though Johns Creek is a young city, it celebrates a rich history.
Johns Creek has relatively new housing stock. Nearly 70% of the 23,000 homes in the city were built since 1990, so there’s always a large selection of newer homes to choose from. The lion’s share of Johns Creek residences are detached single family. Less than 15% of homes are townhomes and multi-family (apartments). Also, there’s not much rental housing in the city. Less than 12% of housing units are occupied by renters, which makes Johns Creek is a great place to invest in rental property.
The crown jewel of Johns Creek’s commercial developments is Johns Creek Technology Park, which was created in 1981 by several Georgia Tech graduates who wanted to develop a high-tech research and business center to encourage Tech graduates to remain in Atlanta after graduation. This technology hub now covers over 2,000 acres and is home to over 200 companies, including many Fortune 500 firms, that employ over 10,000 people daily.
The city is home to numerous professional athletes, R&B artist Usher, pro-football players Charlie and David Whitehurst, television and movie mogul Tyler Perry and the city’s funniest resident, Jeff Foxworthy. Just about any type of shopping you desire is within a few miles, and there are many and varied dining options just around the corner.
Named as “One of America’s Top Places to Live and Go to School” by Relocate America, Johns Creek continues to attract families relocating to metro Atlanta. Johns Creek is conveniently located between the major transportation corridors of I-85 and GA 400, so Johns Creek residents can easily commute to major employment areas as well as to the Perimeter Center area located just north of downtown.
Schools and Taxes 
The public school system in Johns Creek is managed by the Fulton County Board of Education. It is the backbone of the community and one of the primary reasons people choose to live here. The school system’s mission is to instill excellence in academics, the arts and athletics and to provide every student the opportunity for success throughout school and beyond. The level of parental involvement in the schools and the high performance expectations set at home, combined with great teachers and eager students, result in excellent educational experiences.
In addition to the stellar public school system, there are outstanding private school options in the area as well, including Woodward Academy, Mt. Pisgah and Perimeter Christian School.
Many of the Johns Creek schools have been recognized for excellence often over the years. Highlights include receiving the U.S Department of Education’s “Blue Ribbon National School of Excellence” and the State AAAAA Governor’s Cup. In addition to being consistently voted as having the “Best High Schools” by Atlanta Magazine, several schools have been named Georgia Schools of Excellence. Others have been recognized as “America’s Best High Schools” by Newsweek and as “Outstanding American High Schools” by U.S. News and World Report. Eighty-eight percent of the students who graduate from Johns Creek schools go on to four-year colleges including Harvard, Yale, Princeton, West Point, MIT, and other top-level schools.
Johns Creek property taxes, which include county and school board taxes as well, average about 1.1% of a home’s value annually for owner-occupied properties, making Johns Creek an affordable option compared to other metro areas of the U.S.
Economy and Prices
The Johns Creek real estate market has fared quite well during the recent economic downturn. It has experienced higher vacancies in its office and retail properties just like the rest of the nation, but home values have remained more stable.
Johns Creek sales numbers over the last few years are as follows.
In 2007, there were 1,591 single family detached sales (including 96 foreclosures and short sales or “distressed sales”) at an average price of $415,079.
In 2008, there were 1,109 sales (including 113 distressed sales) at an average price of $421,022.
In 2009, there were 1,042 sales (including 159 distressed sales) at an average sales price of $367,913.
Through October 2010, 862 homes have closed (including 111 distressed sales) at an average sales price of $379,404.
The percentage of distressed sales in Johns Creek peaked at 13.9% in 2009 so there haven’t been as many opportunities for value-seekers in John Creek as in other areas of metro Atlanta. This low percentage of foreclosures and short sales has led to better equity protection for area homeowners. Prices hit the low water mark in 2009 (at 12% off 2008 levels) and have improved by over 3% in 2010.
The Future
Since the City is only four years old, the mayor and city council, on behalf of city residents, have been able to chart a new course and set a new direction for the community. There is an even greater commitment today than ever before to provide city residents with unequaled quality of life and educational opportunities. From making minor road modifications to speed traffic flow to building state-of-the-art public safety programs, the city is committed to meeting and exceeding the needs and desires of residents. The city is consistently working on expanding recreational opportunities and adding multi-use trails and sidewalks. There’s also plenty of focus on culture.
The city boasts its own Arts Center, Symphony Orchestra and Shakespeare Theater. The city is also focused on the preservation and beautification of medians and right-of-ways along the roadways. Over the years, much time and money has been invested landscaping these areas to provide something good to look at while commuting within the city. The city also has a very active Chamber of Commerce and healthcare association and nearly any type of service-oriented non-profit organization you can think of. City residents are very active in city affairs and are helping to shape the city’s future.
Preparing to Buy
Even though foreclosures and short sales make up a small percentage of the real estate closings in Johns Creek, they can represent 30 to 50% or more of the closings in other areas. Buyers who want to purchase foreclosure and/or short sale properties need to fully understand the process of each prior to embarking on a purchase. Buyers should ask their Realtor to fully explain how these types of sales differ from market sales regarding the accuracy of the listing data, level of competition, contracts and other paperwork, inspection rights, timeframes, utilities, time limits, and title issues. Believe me, they are not a normal market sale and buyers should be prepared. However, they are generally worth all of the additional aggravation and headaches because of the great opportunities they provide to have instant equity at closing.
With all of the recent advances in real estate technology providing buyers with online access to tons and tons of real estate data, buyers can be lulled into assuming that everything they find online is accurate and factual and provides a complete picture of the home and neighborhood being considered. This can be far from the truth. While I encourage buyers to do as much independent research as possible online, there is no replacement for the knowledge of a local real estate expert. The details you can’t find online are quite often the most important in making a wise buying decision. I think that in addition to helping buyers find a home that perfectly fits their needs, Realtors should make sure that buyers know everything they need to know about a home prior to closing and that they go into the deal with their eyes wide open.
Personal Experience
One of the buyer segments that has been most affected by the recent economic downturn has been move-up buyers. While first-time buyers and investors have very little holding them back from purchases, move-up buyers have been anchored by their ability to sell their current homes. Many buyers I speak with who are in this situation spend more time feeling sorry for themselves and their situation than they do working toward selling their current home in order to take advantage of the fantastic buying opportunities this market has to offer.
Recently, I’ve worked with several move-up buyers who beat the odds and experienced great success. They followed instructions on preparing their homes for sale and on pricing their homes correctly. They invested the time and money necessary to make their homes really shine versus the competition. They were willing to keep working on the little things even after their homes were listed, and they paid close attention to feedback from each showing and took action toward eliminating the source of any negative comment. In nearly all cases, when move-up buyers have this type of attitude, they are able to sell their homes at a price that’s on the upper end of the market and then move on to snap up quite a bargain on their next homes.
Something Funny
Agents in our office often send flowers to buyers after they close on their new homes. I received a call from an agent one day who had done just this, but there was a little problem. Apparently, the florist had mixed up the order for her buyer with one headed for a funeral home nearby. Her buyer clients received flowers with a note saying “Rest in Peace,” while the poor family at the funeral home received flowers that read “Enjoy your New Home.”
About Cleve Gaddis: Gaddis Partners is a family business with roots in the North Atlanta market dating back to 1987 when Cleve’s mother, Jean Gaddis, began selling real estate in the area. The team is dedicated to educating clients to make wise decisions and to putting client’s interests first – regardless of the situation.
Licensed since 2000, Cleve Gaddis has been one of the top 25 RE/MAX Agents in the State of Georgia for the last eight years, closing an average of $24 million in sales volume each year. Cleve graduated Summa Cum Laude from Northwood University in Chicago, IL, with a Management major and an International Marketing minor. He spent 11 years with Electrolux Corporation mastering all levels of Sales and Sales Management prior to going into real estate.
Systems have always been the key for Cleve. Regardless of what is he is trying to accomplish, there is always a system behind the plan, and this is how he delivers consistent results regardless of the circumstances. In addition to being the managing partner on the residential side of the business, Cleve also handles commercial transactions and is knowledgeable in the areas of multi-family, office, retail, land and developed lots.
Cleve can be reached by email at Cleve@GoGaddis.com, on the web at www.GoGaddis.com or by phone at 770-497-0000. If you’d like a copy of Cleve’s Free Report, Buying Foreclosures and Short Sales 101, please email Cleve.
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