This is a competitive market; successful home buyers have mortgage preapproval in hand, know the general characteristics of the home they want and have an idea of the area they want to be in. It’s possible the search may last a week, a month or a year – regardless; preparation is the key to success. There are many buyers looking, when a nice home pops up being ready to go will be a big plus.
Main points to remember as a home buyer in North Atlanta:
- In much of north metro Atlanta, it’s a seller’s market. Fluctuations exist but the summers of ’13 and ’14 were strongly in favor of sellers. As ’15 breaks the cycle of the last two years is expected to repeat with the summer peak.
- Quality homes will attract attention and will sell quickly. Many will be gone in under 60 days, in some areas under 30 days and in some areas in a week. Delays on the part of the agent or buyer mean lost opportunity.
- Don’t expect to score big deals. Sale to list ratios are consistently in the upper 90% range in East Cobb, Alpharetta, Roswell and other highly desirable markets.
- There are no short sale bargains. Lenders are fine foreclosing; they usually get mortgage insurance, still get money from the bailout, can elect to file a deficiency judgment and they get the property back in a rising market. Then there’s the assumption that the sellers comply with everything in a timely manner…and since they’re not paying the mortgage what’s the motivation? It’s easy to keep delaying and living for free which is why these are an exercise in futility.
- There are no foreclosure bargains and haven’t been for a few years. Lenders know buyers will look because of “foreclosure” and that in stable to rising markets someone will pay retail or close to it. These can be money pits with no disclosures, hidden issues, limited title and other traps. In the mind of a lender, cheap paint and carpet cures all ills.
- If a home has been languishing, there is a reason. Unreasonable sellers, inspection and or appraisal issues, functional or external issues, lousy agents…a number of possible reasons exist. Homes develop stigmas for a reason. Or, it might be a great home with a trapped owner. Many owners remain under water or are even with no profit for a move. If a seller owes 525K on a 500K home and can’t come up with the 25K at closing, there is nothing to be done.
- Some sellers may not listen. They might be able to move but refuse to acknowledge the data or issues present. Some refuse to acknowledge data, refuse to negotiate or refuse to consider issues found during inspection. This is not usual in highly desirable areas at certain times of the year. The East Cobb and North Fulton areas during the late spring and summer are perfect examples as buyers position themselves for the upcoming school year.
- What is bought will be sold. Although it sounds crazy, think about selling the home; will it be appealing when it’s placed back on the market? Stigmatized homes with functional or locational issues that were used to “get a deal” could haunt the resale.
This chart is for all of the Atlanta FMLS and it shows the median values over the last 5 years for single family, townhomes and condos. Broad, yes - but most of the micro markets were similar. You can see where things bottomed...
Every home buyer is unique but the recipe for success tends to be consistent. Learn how we educate buyers and instill the confidence required to act decisively. Drop us a note or call 678-428-8276; we’re happy to chat.
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