Do you know what a "Poly Farm" ofr "PVC Farm" is? You better learn quick! "Poly Farms" refers to the unfinished subdivision lots where green PVC sewer pipes sticking up out of the ground in unfinished subdivisions and abandoned developments. They are called "farms" because they appear to be growing out of the ground. The only other growths are the weeds that are growing up along side of them. We certainly are not speaking of construction growth. These unfinished subdivisions developments with green pipes sticking up from the ground are a visible eyesore all across the Atlanta landscape. For those that understand Atlanta real estate they send a warning, that purchasing a home in some of these subdivisions may not be a smart idea. What at first sounds like a great deal, may be your financial Waterloo.
Suppose you purchased a home when the subdivision was just starting at $400K hoping to sell when the subdivision starts to mature by undercutting the builders new pricing, and selling a loaded home well beneath the new construction phase, and still making a great profit. Today the risk is that if you purchase a home even at a discounted price, the builder may not be able to finish the subdivision, or he may under cut your 400K purchase by introducing a new product, perhaps a ranch home that is priced substantially below your acquisition cost. Suppose the builder undercuts your 400K and introduces a 275K home? That is a major hit to your equity, and salability. If the development you purchased in goes bankrupt there are other issues, what about the amenities? What about vandalism and crime? What about the builder warranties? What about if the bank sells off the remainder of the subdivision to another builder that decides to build homes less than half you price? In simpler terms, your screwed! You may have purchased a home that you cannot sell until the market comes back. In the late 1980's the real estate market in Atlanta collapsed, and the town was loaded with unfinished homes. In the 1990's it took almost 1 full decade for homes in many of these types of neighborhoods to regain their equity. Most new agents do not understand the risk, and cannot advise you correctly. The Atlanta market had several collapses one in the 1970's, and another in the late 1980's. The scope of this correction is much worse than either of those 2 corrections.
An experienced agent that is working with a buyer will educate their clients that not every deal in real estate is a bargain. If it sounds too good to be true, it probably is a loser. Foolish buyers may be left with a subdivision with uncompleted amenities, and have to maintain a disproportionate share of maintenance to keep the neighborhood from looking like a vandalized foreclosureville. The time to ask for advice is before you buy a home, not after. If you look around there are other warning signs all over the place. It is smart to pay attention to the signs, if you don't...it will cost you!