I had reached agreement with a builder for a townhouse in a very good location: the price dropped almost $27k , and it has 4 bedroom, 3.5 bath, all upgrades, granite, hardwood, 2 car garage.

The only thing is the back of the house is facing a busy street.

Should I consider to buy it? A lot of friends tell me it will be hard to resale it.

Any good advices?

Thanks,

The old saying about the 3 most important things in real estate purchases being "location, location, and location" remain true today.

A well cared for house in a good location and priced properly will almost always sell.

Well meaning friends often give unsophisticated advice, especially about financial issues, trying to help but sometimes end up hurting you.

If you like it and think you will be happy there that's the most important consideration.

Thanks, Jim.

THis is the best location in Atlanta, plus they are going to build a new memory hospital 2 miles away.

So a townhouse backed with a busy street is considered ok?

The busy street would not bother me unless it made it too noisy inside the unit.

I am buying it for investment property to rent out. This subdivion can rent out the second day after you post it on craigslist if priced right.

So I worry if tenant will like the fact the house's back is on a street.

Any good ideas?

If it's not too noisy inside any prospective tenants probably will not mind.

it is still underconstruction. Not sure if it will be too noisy or not.

It will be a middle unit, the back is full brick.

Learn what your local market is. What do similar properties with the same characteristics including high traffic streets sell for and rent for.

You should know that in most markets, it is very difficult to purchase a new property and be able to rent it out for a sufficient amount to cover debt service, taxes, Insurance, maintenance/ repairs and proration of Closing Cost PLUS your desired Return On Investment. Have you calculated how much cash flow you would have? Have you looked at what your reasonable expenses are? Chances are low that you will cash flow and that is not an investment. If your depending only on appreciation then your speculating, and if you don't have a good understanding of what I have just covered... your just a gambler and not an investor.

Wendi is the property actually in atlanta or one of the surrounding counties?

Generally this is how it goes as far as values in Ga.

Condos appreciate the slowest,followed by townhomes,followed by single family detatched homes.If it's in Atlanta they expect busy streets and noise.A question you should ask is if the builder put in reduced noise or soundproff windows.They cost more but in high traffic areas make a huge difference in noise coming into the property.

You sound like you need a good agent,dropping 27k isn't alot of money if it was priced in the highest 10 percent of the development to begin with.If you are a real estate agent you should know the values before getting into investing.
If the builder is fixing to be foreclosed on you can get a steal.

Not many people know about these but builders have blanket mortgages from banks where they build multiple properties at a time.At set times the builder is supposed to have the property sold and release that property from the mortgage.If the builder has not sold the property the bank can start foreclosure proceedings,the builders then get very motivated to sell these properties.If they get foreclosed on it will be really hard to get fundign to build more homes int he future.We call these silent foreclosures.good luck

What's the busy street.

Commercial traffic going to shops and restaurants.... or a free way.

Commercial traffic noise is part of the price one pays to live in the city (if you're in Little 5 Points, Buckhead or Virginia Highlands you're used to it), if its a freeway... take a pass.

It is right on 141 and abbotts Bridge.

So $27k drop is not that much nowadays?

I think in Johns Creak area, you can not buy a townhouse or anything new in that price any more.
$230k

What's there?

Wendy, I know that area, and right now you can't go wrong buying there. Like Jim said, make sure the noise is tolerable before advancing. Good Luck!