It certainly has to be the word of the year, and everywhere you go people are talking about foreclosures. The comments range from “I want to buy a foreclosure, something worth $300k that I can pick up for about $100k!” to “I can’t sell my home because these damn foreclosures keep showing up in my neighborhood, that’s all anyone wants to buy!”.
I want to try and comb through the hype, misinformation and pandemonium and give you some foreclosure data specific to the North Atlanta real estate market. This is what I would call the Good News / Bad News report of our foreclosure woes (or opportunities) depending on which side of the fence you sit, although most of you are sitting squarely on the fence.
Good News:
There seems to be a record number of buyers out there looking for that fantastic deal. And the data shows that many of them are taking advantage of it. Recently Keller Williams commissioned a report on the Metro Atlanta market and it shows conservativly that 35% of all sales are foreclosures. We think this is conservative as not all foreclosure sales show up in the MLS so actual numbers may be in the 40% - 45% range.
Bad News:
That high percentage of foreclosure sales are hurting those resale homeowners that want to sell in this market. Those foreclosure sales also serve as lower comps for appraisers when those homeowners do get offers.
Good News:
While there is currently 10 months of inventory across all price ranges in Alpharetta / Milton / Roswell, there is only approx. 4.4 months worth of foreclosure inventory across all price ranges.
Bad News:
You need to take advantage of these opportunites now, don’t look for an insane listing price on a home, grab your Realtor and make that deal happen. Banks list foreclosures at aggressivly low prices and will negotiate off those prices. If you think your going to find something listed for fifty cents on the dollar you’re mistaken - unless you go to Detroit.
Straight News:
If you are a buyer in this market there as never been a better opportunity for you but you have to make the offers to the bank and create that fantastic deal. If you are a seller, while this market is challanging, there are some buyers that do not want a foreclosure. They can’t spend the time banks take to negotiate and they don’t want the repairs. Some buyers are relocating into the area with their family and only want to move in and live. So, make sure your home is in great shape, shows well and is priced aggressively.
Tags: Foreclosures, North Atlanta
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