Everybody wants a foreclosure

Contrary to all the media hype there are not that many loft foreclosures in Atlanta. I don’t know how it is any other city but in Atlanta there is not that many. Looking at what is listed in the FMLS, there are only 10 lofts out of thousands that are foreclosures. In my opinion there is just 1 unit out of that 10 that I would say is a extremely good deal. Time after time I see buyers putting in  offers in on a foreclosure and let me tell you the banks aren’t negotiating, especially the ones that have already slashed the prices. Buyers are missing out on golden opportunities because they thought they could get these foreclosures for more than 20-30% off the asking price.  When the bank doesn’t budge these buyers get really upset and just walk away but in reality even at full price most of these foreclosures are great deals and way under value. When the banks list these properties on the FMLS system they have already slashed the price when they listed them, so it is highly unlikely that you will get more than 5% off the asking price. Plus, you have to keep in mind that you are competing with plenty of other buyers and investors that are looking for the same thing, so if you find a good deal you will need to jump on it because they go fast or you get stuck in that lousy situation where there is another offer that came in right behind yours which creates a bidding war.

Looking at normal resales on the market right now, I see plenty of other lofts that are good deals just because the owners have been transferred or are ready to move on to something else. For example, there are 2 units at The Factory Lofts that are both priced at $364k both owners paid around $400k for them, my listing over at Lofts at The Belvedere that is priced at $205k, that owner paid $219k for it a couple of years ago. These owners didn’t buy overpriced units, that was the going rate a couple of years ago for them. I am also seeing developers starting to negotiate as well. The Marble Lofts are willing to take off $15k off their prices, Studioplex has been negotiating, Lofts at Sutherland Place are willing to take off 30k off their units and so on.

So, don’t just think that you have to find a foreclosure in order to get a good deal because there are plenty of other things out there right now that are just as good.