Mortgage Blog On Georgia Financing

What’s shocking about today’s market is that not only have prices retreated, but they have gone so far that in many cases you can now buy a home for less money than the cost of building a new home, even if the dirt were FREE.  For example, you can buy a million dollar plus Buckhead home for $850,000, sometimes lower. And, in the very popular Brookhaven area, million plus homes are being sold as low as $300,000. That doesn’t mean your new abode doesn’t have work to be done, but you can buy a home now in very desirable areas for a fraction of what you might expect to pay.

What’s even more amazing is how accommodating sellers are in regards to what is happening with the market. There are times that after I’ve submitted my offers on behalf of my buyers and the seller’s accept it without change, that I’m sitting there scratching my head going “How did I just do that?”

Still, the most SHOCKING aspect of it all is that many Atlanta Home buyers still do not recognize this.  Wall Street corporate raiders made fortunes buy buying companies below their replacement cost.  It was only a few short years ago that buyers lined up early in the morning and got into bidding wars to buy property!! Now when shown a home that can be bought for 10%, 20% and as much as 30% below the cost of building it new (with the home site thrown in for free) they are unsure if they are getting a good deal or worse would like to “wait” to see what happens with the market.

NO ONE RINGS A BELL AT THE BOTTOM!! The Atlanta real estate market is experiencing this in record numbers.  Because of the large number of institutional sellers (banks), whether it be an Atlanta foreclosure or Atlanta short sale have chosen to reduce the selling price so substantially to get these properties off their books that anyone looking to build a new home in the sub $400,000 price range should find it next to impossible not to take advantage of one of these amazing values. And, don’t worry YES, there is still money available for qualified buyers.

As you move up the price scale this becomes less common with Atlanta homes for two reasons. First, there are less bank-controlled properties in the $1 million price range and secondly the land values are holding steady.

BRC (Below Replacement Cost) Properties won’t last forever.  When they are gone, they are gone and then everyone will wish that had one. Isn’t that always the case?  We all want what we can’t have.  A couple of years ago everyone wanted one.  Today you can have it, you can have MANY of them if you choose to take advantage of it.  When this market cycles back around you will be very glad you took massive action. While the others will be sitting at the “shoulda, woulda, coulda” table.