Increasing property values in Coweta County Georgia over the last few years have led to a new kind of property flipper and consumers need to be wary.
These marginal foreclosures are getting a fresh coat of paint, some new flooring, and a few new shrubs planted here and there and are being offered as renovated properties.
The sellers are the former lien holders of the property. Fannie Mae, in particular, now sees its portfolio of repossessed property as cash cows instead of white elephants.
Owners have a right to dispose of their property for any price they wish. There is no law against that.
However, there IS a law in Georgia that requires the disclosure of all known adverse material defects.
There properties receive multiple inspections and examinations prior to being offered for sale. One cannot “renovate” a property without first analyzing the condition of the property and its marketability.
To offer a supposedly reconditioned property as “as-is without disclosure” flaunts the law.
Buyers should beware. These freshly painted inviting houses often have systems that are on their last legs. Remember, these were foreclosures so one can assume there was a lot of deferred maintenance.
Yet they are offered at the same price as non-distressed properties in the same neighborhood!
Just because a property was a foreclosure does NOT mean it is a good deal.