Builder Close Out - Unofficial short sale - great deal for my Buyers!

Last week my 1st Time Home-Buyer Clients closed on their "Dream Home". They wanted "shiny & new" with all of the modern conveniences at a rock bottom price.

After months of discussions, data analysis, explanations, etc. about how big of a risk it is to buy new construction in Atlanta in 2009 from Builders with unfinished developments & massive standing inventory, they finally found the ideal situation in which I'd give my professional blessing for them to move forward & know that they were in the best financial situation within the development. We were looking for true Builder Closeouts.

Builder Closeout pricing tends to be slightly/moderately lower just to entice quick sales and finish out the development. We're not talking about finishing out phase 1 of 20 (which unfortunately is happening for some Atlanta Builders who are struggling to avoid foreclosure/bankruptcy and are negotiating with their lenders to conduct short sales.)

My clients we able to get a great deal with on a property more than $70,000 off from prices just 9 months ago in a development that had been selling around 400K previously. On top of that, we got them more than $11,000 in Seller paid Closing Costs & Pre-paid Expenses (Hazard Insurance & Taxes), not to mention a COMPLETELY FINISHED BASEMENT WITH FULL BATH, as well as a stainless steel refrigerator and top of the line washer & dryer.

The development has only 42 townhomes, they builder was already in closeout mode when his note was sold in the secondary market to a hedgefund - creating a quite short sale situation. This is considered a distress sale by many and one step away from foreclosure. This builder will remain nameless & would be recognized by many as a very reputable builder with many impressive developments in the Metro Atlanta area.

A true builder close out is the only way I'd give my clients the blessing because we're seeing liquidation auctions & foreclosures of new construction all over the place - but these are in developments that may be less than 30% built, so who's to say what will happen with the unfinished land or the other standing inventory that is yet to be sold?

In a Seller's market you want to be the 1st one to avoid the escalating sales price, but in a Buyer's market - which we are clearly in right now - you want to be the LAST one in so you get the absolute rock bottom price and no one can undercut your equity position. This is exactly the position my clients were able to acieve and when it's time for them to sell this beautiful townhome with an incredible "man cave", chef's kitchen overlooking a golf course, they'll be in a great position to capitalize on the most equity possible as a resale in their great development.

If you or someone else you know want to gain a great equity position, whether you're a first time home-buyer trying to take advantage of the $8,000 tax credit or this is your 2nd or 3rd home --- please feel free to contact me and I'll help ensure you take advantage of short sales and foreclosures in the Metro Atlanta market.

Michael Neville & Associates

Keller Williams Realty Atlanta Midtown

www.LiveInAtlantaGA.com

Mike@LiveInAtlantaGA.com

404-310-8364

404-604-3100