Many home buyers are complaining that homes still are over priced, and in very opoor condition in this current market. Dispite what the press is saying that there is more homes than aever before...it isn't true. There may be fewer homes available to show buyers that one assumes in this Atlanta real estate market. Even though First Multiple Listing Service FMLS shows there are 73060 Active properties found, and over 43783 of them are single family detached homes (substantially less than last year)...this number can be totally deceiving. First of all many new homes do not seem to be entered into the system to avoid FMLS fees, and then there are foreclosures and short sales which are showing to be "Active listings" while accepted offers are already signed off on. In reality they are not Active listings, that is just a fall back position in case the deal goes south! With the high number of foreclosures in our market place, this is a very common scenario. However this is now why I wrote this post. I personally believe the bulk of homes in the market are not in a position to be sold at all.
Many of the listed homes were purchased while the market was at its peak, and they were purchased with a 100% financing. No money down, extras, upgrades, and closing costs were rolled into the price. These are "Price Plus Properties!" The sales price is not even attainable any longer. Let's suppose a home was purchased in August of 2007 in the Atlanta are for $250,000. The possible realistic value of that home today may be $225K. However, an inexperienced agent may have the home listed for 300K. This is "Make believe real estate." This way the agent can pretend they are a productive member of society, and blame the economy not themselves for listing a home that can never sell. They don't have to confront the seller, and everyone can still be friends. When a bad offer (realistically priced offer) comes in the inexperienced listing agents will point the evil finger of blame at the other real estate agents! Inexperienced agents acting in this fashion in many cases ensure the home will go into foreclosure. Their actions have enabled the seller with false information and wasted to most valuable commodity the seller had..."Time!" It has been my experience, that professional and seasoned agents will not waste their client's time showing properties that will not appraise. Instead, they will do their own market research and educate their clients to move on to the next deal. Their goal is not to bond with their client, but rather to fulfill the needs of their client.
The last item in the illusion of a plethora of Atlanta real estate inventory is "Potential short sales." I call them, "Foreclosures in waiting." Many agents are listing homes for sale at ridiculously low prices and have not sought approval of the lender that holds the mortgage first. These properties go on an off the market for months, and most will fall apart at the last minute. Again this is wishful thinking and is analogous to children playing doctor!
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