In our area in North Metro Atlanta there are many, many, unfinished subdivisions with empty lots. Inevitably someone down the road is going to finish out these communities. Recently we showed a home that was 2 years old. This home was purchased at the peak of pricing. The community is unfinished and the builder went bankrupt. The home is priced $75,000 less than purchase price a year ago and the owners are obviously struggling. No problem right? Wrong! The deed restrictions for the neighborhood are vague at best.
Minimum square footage is about a thousand sq.ft. less than the homes that are already built. All homes should have a front porch, well, the current homes have HUGE front porches and a covered porch is almost the same price per sq. ft. as a finished area.
Now the next builder comes along, they build at the deed restriction minimums. Now they are selling homes for a hundred thousand dollars LESS than the existing community. These situations are going to be attractive down the road for some builders, but, the folks that have bought from the original builder are not going to be happy at all. A scenario that will not happen? It already has!
Comments(5)