It use to be that if you heard about an Atlanta home going into foreclosure, that you wanted to jump all over the opportunity of getting the best deal in town. Well that may not always be the case these days. Foreclosure statistics are astounding for the Atlanta real estate market today. In April alone there were 7,271 foreclosures reported by national foreclosure research firm Realty Trac LLC. And believe it or not, that number was down from the previous month, which boasted 11,047 (nearly a 45% increase from February)!
Yes, foreclosures are coming fast and fierce in the Atlanta Real Estate market – but what does that mean for you? Does that mean you should rule out non-foreclosure Homes For Sale in Atlanta and solely wait on a foreclosure to come up in the neighborhood you are wanting? Or does it mean you shouldn’t narrow your search to a specific Atlanta neighborhood or community at all, instead searching for any and all foreclosures around metro Atlanta?
Well, I’m here to say that I’ve seen all sides of the transactions in this past year and the reality is not as great as the perception. Foreclosed homes have provided deals for Atlanta home buyers seeking affordable housing in the past, but today’s real estate market isn’t quite the same. What is driving this to be the case in today’s Atlanta market?
Sometimes a low price on an Atlanta home isn’t indicative of a great deal. If the house has been abandoned for the last 8 months to a year, it may have been vandalized. Buyers are often coming into their new home with a whole list of problems. Former home owners may have removed appliances, hardware, light fixtures, in addition to wrecking the walls and carpet. These problems are obvious to the bare eye, but problems like stripping homes of copper wiring and plumbing fixtures are not quite as obvious and can be very costly in the long run.
It is hard to discover these issues prior to purchasing the home because most foreclosures are sold “as is” and the bank is not willing to repair anything. Not to mention, that typically all utilities have been turned off during the foreclosure process making it difficult for a home inspector to spot these potential issues. Damages can lead to thousands of dollars in repairs leaving you with little to no equity left in your home.
What is the solution then, you may ask? Is it actually best to steer clear of all foreclosures? Like everything in today’s Atlanta real estate market; I think it is best to have a happy balance. Atlanta Foreclosures can be profitable if you have all the facts and the bank is willing to cooperate with you.
Short sales (a situation in which the lender agrees to accept a discounted payoff from a buyer releasing the lien for less than the original mortgage) can sometimes be a better solution. In most cases the original home owner is still occupying the home and maintaining it properly. Or you may just want to keep your eye open for someone who is needing to sell and understands they have to price their home aggressively, stage it meticulously, and cooperate endlessly to sell their home in today’s Atlanta real estate market.
If you would like more information on Atlanta foreclosures and/or short sales, feel free to contact us as noted below. We look forward to helping you!
Chrissy Neumann
REALTOR®
Castles By Chrissy, Inc.
Keller Williams Realty - First Atlanta
200 Glenridge Point Pkwy, Suite 100
Atlanta, GA 30342 | CastlesByChrissy.com
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