Atlanta New Homes Foreclosures Offer Home Buying Advantages

In the market for a deal on a new house? Consider a foreclosure – but one that no one has ever lived in before. Many home buyers first think of “foreclosure” as a house that a former owner has vacated, either voluntarily or forcibly. They may also mistake the market as the sole venue of investors. But another segment of that market is made up of Atlanta new homes and properties that have never been occupied, and can present terrific savings for ordinary buyers.

The selection of  homes crosses all price ranges and corners of the metro area where lenders have taken over unfinished developments. Shirley Gary, a former veteran sales executive for builders, uses her expertise to connect buyers with those new-home deals, but of course, just what constitutes a ‘deal’ varies by location.

“In the areas where most people want to live, the values are higher, even for foreclosures,” said Gary. “So location still plays a big part: Values in Paulding County may be down by as much as 50 percent, while in east Cobb, they’re only down maybe 3 percent. Each area is completely different.”

Buyers willing to rethink their preferences can make some fabulous finds, she said. “It depends on what you’re willing to sacrifice. If you’re willing to give up a certain school district or area and are willing to take a risk on a neighborhood that may have some rough areas around it, you can find that house priced below $50,000.”

Buyers in this market also need to be flexible, and not in a hurry to close the deal. Chances are good they won’t get a quick reply to their sales bid, since this segment of the foreclosure market moves very slowly, said Gary.

“If you buy a house from a new-home builder, or even buy a resale, there is a listing agent who responds in a specific time frame,” she said. “With these properties, you’re sending a contract to a bank, so you can throw time frames out the window. When they get to it, they get to it. They’re in the driver seat, and you just have to be patient until they’re ready to deal with you.”

At any time, Gary may have as many as 150 bank listings, with another 50 from an investor group. About Sales Inc is a team of 35 sales people working with builders, developers and investors to find buyers. But it is easier to work with some banks over others.

“Listing property for banks is much easier when the bank is willing to finish incomplete homes to sell versus selling in an unfinished state,” Gary explained. “The banks that won’t do that substantially reduce the number of available buyers for their listings.”

For buyers, moving into an unfinished house can present a range of problems, including acquiring a certificate of occupancy and a loan. While those properties offer tremendous opportunities for cash buyers, Gary’s clients typically prefer foreclosed properties that are completely ready for move-ins. “These are houses that are totally finished, including flooring, in neutral colors that help them sell a lot faster,” said Gary. “That’s a big advantage for finished houses; floors with spray paint on them don’t give the purchaser a sense of “home”.

Buyers who want to see new-home foreclosures need only contact a reputable agent. “You don’t need an agent who specializes in foreclosures,” said Gary. “We all have the same capabilities to search for properties that will fill your needs for a new home.”