I have great news for sellers, but to all my buyers out
there, it is time to strategize! Let’s talk about your position in today’s
Atlanta real estate market.
It is no secret that inventory has shrunk over the past 8 plus
years, but it has hit a new low, especially in the Northern suburbs of Atlanta. Add that to an increased buyer pool thanks to
Millennials (our personal favorite buyer pool) and an influx of buyers wanting
to take advantage of low mortgage rates before they go up, Atlanta has been FLOODED
with potential buyers. This is proving
to be a huge challenge for first-time homebuyers because the inventory shortage
is concentrated on homes listed at $350,000 or less.
Buyers, what do you do?
-Make sure you are being represented by a KNOWLEDGEABLE agent.We cannot stress it enough how all agents are not created equal.You will need someone who:
Has dealt with your specific area’s competition.
Has experience in high stake deals such as seamlessly transitioning into another house, selling at the appropriate time for tax benefits, someone who knows the rental markets in the area as well who can help guide you on potential income, etc.
Is familiar with unconventional funding sources that you may qualify for.
Is someone who is AVAILABLE to you.
-You need to be prepared to move quickly.Although we encourage our clients to tour as many homes as they want, we also cannot stress the importance of making a decision in a timely fashion.Determining you want to put in an offer on a home is the first of many steps in actually creating a contract to send for negotiations.The negotiation process is where you will spend most of your time and effort.
-Make sure you are flexible.Low inventory means that you will have a harder time finding all of your “wants”. Go into your search with hopeful, but realistic expectations.Properties may need to be tailored to your wants after your purchase.Your agent is a great resource to help you see the potential in homes that are sometimes hard to envision yourself.
-Be prepared to get into a bidding war.Multiple offer situations are becoming the new normal.To help deter this from happening, be prepared to submit a strong first offer as soon as the home hits the market.
-Think outside the box.Typical purchasing patterns show people moving out of the city into suburban areas to get more bang for their buck.Millennials like to stay close to the city for a lessened commute but there is a new trend happening all around metro-Atlanta.Urban communities hubbed in suburban areas.Several mixed-use communities have been developed in Roswell, Alpharetta and Suwannee with others to come throughout Gwinnett and Cobb counties.
Sellers are sitting pretty happy in today’s market. According to Zillow, national appreciation was
around 5% over the past year but metro-Atlanta home values have appreciated at
10%+ specifically in Buford, Roswell, Chamblee and Doraville.
Our advice to sellers?
-Now is a fantastic time to list!If you were under water from the mortgage crisis 10 years ago, you should be in the black now.
-Make sure you are being represented by a KNOWLEDGEABLE agent.We cannot stress it enough how all agents are not created equal.You will need someone who:
Will give you a thorough explanation of their expectations of you as the seller.Whether you like it or not, you will need to actively participate, especially in the beginning to get your home list ready.Your agent will be able to walkthrough the whole process with you.
Will let you know exactly what to expect from them.They should have a timeline of events that is market appropriate (list date, market reach opportunities, open house, virtual tours, etc), someone that has a strong internet presence and someone who knows how to negotiate.
You need someone that is always available to you as well as to other agents.A lot of time is spent between agent-to-agent communications.If your agent is not available to other agents, you could take a financial hit.
-Negotiations… just because you have several offers on the table, the highest bid is not always the one that makes the most sense for your goals.Your agent needs to be able to explain how different financing contingencies, timelines and other roadblocks that could make one offer stand out more than the others.
-Be prepared to move quickly.Average number of market days is shrinking which means if your home falls in the $350,000 or less category, expect a quick turnover.
Taking all of these items into consideration, the real
estate market in Atlanta is still in better shape for buyers and sellers than
other parts of the US. Although
inventory is low, there still IS inventory and we are still considered one of
the most affordable cities to live. First-time homebuyers, now is your chance to get in while you can. Sellers, it is time for an upgrade!
-Published by guest writer, Jana Lambros
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