It’s no secret that in desirable areas of metro Atlanta, land has value. If you’re an owner of a potentially distressed or tear down house that’s needing to sell, there are several advantages that come with selling directly to a builder versus listing with an agent and sharing the property on the market.
What is considered a distressed or tear down house in the Atlanta real estate market?
Typically, it’s an older, smaller, 1000-1800 sq. ft. house in an established neighborhood with good schools, low crime rates, and proximity to major transportation arteries and local commercial districts.
- Builders understand that the value is in the land vs. the condition of the home
Homebuyers in high demand markets are less willing to settle when it comes to the condition of the home. In the Atlanta market, the majority of buyers are in search of new construction or newer construction homes and would prefer not to go through the hassle of a massive renovation project. Builders are evaluating the value of your property, and not the value of your home. A potential homeowner however, may bypass your home because of the size, condition, finishes, etc. Builders have a vision and can see past overgrown bushes, rotting facades and high costs of repair that might discourage homebuyers.
- Less hassle during due diligence/clean contract
A homebuilder knows what criteria they are evaluating with your property and the land. Homebuilders understand the ins and outs of what it will take to develop that property for new construction, so it only takes a few days. Due diligence becomes a more straightforward process with less back and forth vs. a homeowner looking to purchase the property.
- Sell the property as-is
Because a builder will be most likely be demolishing the home, there is no back-and-forth negotiation on costs associated to home inspection issues, or personal homebuyer concessions asked for after inspection.
- Builders are active in a market year round and not impacted by market seasonality
Builders aren’t only looking for properties in the active spring season and when school is out. They are in it for the long haul, and are thinking not only of their construction schedules and opportunities of this calendar year, but of the next calendar year as well. Home buyers however, tend to have a smaller window of opportunity to act. If you are moving or relocating during off seasons, your home may sell quicker to a builder.
- Low to no commission on the sale
Selling your property to a builder allows you to skip listing your property on the Multiple Listing Service (MLS), which requires the seller to pay commission to the listing agent and the buyer’s agent. This commission averages from 4-7%. On a $300,000 home, at 6% commission of the sales price, that’s $18,000 in itself. Selling your property to a builder puts that money directly in your pocket.
- Quicker close
Selling to a builder typically is a faster, cleaner process. There are no sale contingencies or financing hurdles to jump through because most builders already have financing and established credit lines. Once the due diligence period has passed, a homebuilder is usually ready to close within 30-45 days.
Selling Your Property on the Market
Here’s a breakdown of the costs you might expect to incur when listing your property with an agent on the MLS in Atlanta.
Selling Your Property to Harrison Homes
Harrison Homes is always looking for distressed properties and buildable lots in the following areas of Metro Atlanta:
Brookhaven, Brookhaven Heights, Buckhead, North Buckhead, North Atlanta, Sandy Springs, Chamblee, Chastain Park, Morningside, Vinings, Decatur, Roswell, Alpharetta, Milton, Virginia Highlands, Inman Park, Dunwoody, and more.
We are Committed to the Communities We Serve
Harrison Homes invests in the communities we do business in—we live and work in the places we build. We respect the integrity and character of the neighborhoods and people. Harrison Homes treats every home we build like it’s one we’re building for our family.
Free Home Estimate
We understand that making the decision to sell your home property is a personal one, and we respect that. If you’re entertaining the idea of selling, we encourage you to reach out to Harrison Homes for a Fair Market Value Estimate for your property.