There is a subdivision in Grayson, GA with gorgeous custom brick homes, larger lots, mature trees, a wonderful swim and tennis with a beautiful clubhouse.   Situated right in the thick of it as we like to say in the south.   Location could not be better.  Northforke Plantation.   THE place to be for years if you wanted to live in a higher end community in Grayson.

The market crash has obliterated home values in Northforke.   It's worse than just about any other subdivision that I can think of.   Sellers are dumping their homes on short sale at any price, just to get them sold before the foreclosure.   Georgia is a non-judicial foreclosure state.   The mortgage lender has a predetermined process, and often they will even allow you more time, but once the decision is made to proceed, boom, you are foreclosed.  

Many homeowners trying to do the right thing simply wait too long.   They try so long, hoping and praying that something will happen to allow them to sell or keep their home.   

When the homeowner realizes that short sale is their only remaining option to avoid foreclosure or instead of deed in lieu, they often hire an agent at the last minute and in a short sale ladies and gentlemen, when it comes to price, short is short.   Doesn't affect your credit worse if you give the house away - short is short.  Whatever makes it sell faster and that's what the agent is hired to do and seller is going to do.   It's quite literally a race against the foreclosure sale on the courthouse steps.

The sellers in Northforke have no one to blame except their neighbors and the banks.   The buyers in the market are actually willing to step up and pay the price to live in Northforke but most won't be allowed to do so because the banks and appraisers won't allow it to happen.

I had an appraiser tell me today that my $450,000 sale of a four sides brick custom built home with over 8,458 FINISHED square feet, gorgeous in-ground pool, screened porch with a coffered ceiling no less, high end black aluminum fenced yard, professionally landscaped, 3 car garage, custom everything.   Don't even get me started on the kitchen.   It is not going to appraise at even $400,000.   Seriously.   Frankly, it is sickening.   It is a sad sign of our times.  

I begged him to consider the house next door.   I have it on good authority that they just sold for $420,000 and their appraisal came in at $420,000.   He said quite frankly that he didn't care what my house appraised at.   That he could only consider the closed sales.   I said, well, why do you include active listings if you can't even consider a pending sale that has already appraised?   I asked him to check Redlink database for the appraisal and he said it wouldn't show up for two months.  

Here's the big question and he had no answer - surprise!   How did the house next door get an appraisal at $420,000 and we cannot?   He didn't have an answer after he told me repeatedly that appraised value is determined by recent comp sales.   I asked, well then how did they get over $400,000?   He doesn't know and he doesn't care.  

I asked him a simple question.   How are prices EVER going to go up?   If market value is going to be determined by people who dump their homes or walk away what is the meaning, the true definition today, of fair market value?   The appraiser had no answer.   I am absolutely incensed. 

Here's a novel idea:   why don't the banks qualify buyers based on their ability to pay and then hire appraisers to find a way to SUPPORT the sales price?   Fair market value is determined by what ready, willing and able buyers in the market are willing to pay - well, in some states I guess, but not in Georgia.    We need new laws, period.

Two buyers in as many months have come into Northforke Plantation qualified, ready, willing and able to pay $450,000 for homes.   The banks will not allow it.   The appraiser says he cannot go outside the neighborhood unless he has a reason and with 14 sales he doesn't have a reason.   Doesn't matter that most of those sales were short sales dumped to avoid the eminent foreclosure.