Buying a house in Atlanta goes beyond getting the necessary financing; it also involves understanding your target real estate market’s current state. And that can get pretty dicey if you happen to be buying a home in a seller’s market—when the inventory is low, and there is a higher demand for the few available homes on the market.
This article will highlight seven (7) surefire ways to win your competitors and get your desired home even in a sellers’ market.
Seller’s Market Versus. Buyer’s Market
When buying a house in a seller’s market, you should know the market condition. In a seller’s market, more buyers looking to purchase a home than homes available for purchase. There is stronger competition for the limited amount of homes and sellers have more leeway with the pricing.
However, there are more homes available for sale in a buyer’s market than there are buyers. Buyers have more leverage in a buyer’s market, and sellers are more likely to offer some concessions (lowering the price) to get more offers.
Currently, the Atlanta real estate market is seller-focused market. It is common to find yourself in a multiple offer situation when buying a house here in Atlanta.
7 Ways to Win in A Seller’s Market
Buying a home in a seller’s market doesn’t necessarily mean you will end up with a bad or overpriced property deal. While there is bound to be intense competition from other homebuyers, below are seven ways you can stay ahead of your competitors.
1. Get Pre-Approved for a Home Loan
One of the smartest things you must do to help you stand out from your competitors is getting pre-approved for a mortgage before submitting an offer to a seller. Before sending in an offer, you should get a pre-approval letter from your lender. Not only does this put your offer ahead of others, it tells the seller that you can afford the home.
2. Get a Great Local Real Estate Agent
The home buying process can be stressful, confusing, and overwhelming, especially for first-time homebuyers. This is even worse when you are looking to buy a home in a seller market. Having a local real estate agent by your side throughout this process can help make the entire process easy and swift. A local real estate agent can help you with insights into the different neighborhoods and happenings in the local real estate market, helping you make the right offer.
3. Draft An Offer Letter Tailored to Each Home Seller
These days, writing letters to home sellers is now the in-thing among homebuyers in a seller’s market. The question is, how do you craft an offer letter that attracts your potential home sellers? The first step is making sure that your offer letter shows the seller why you genuinely want it. Most home sellers want to handover (sell) their home to someone that truly appreciates it.
4. Put More Earnest Money Down
Earnest money is the amount of money you put down to prove to the seller that you are serious about purchasing their house. It is typically referred to as good faith money. In general, earnest money protects the seller if the transaction blows up.
It is common for homebuyers to renege on the contract after the seller has accepted their offer. Putting down sizeable earnest money is a great strategy to use when looking to buy a house in a competitive market.
5. Make An Offer in Cash
While you don’t need to employ this strategy, an all-cash offer can be incredibly tempting to most home sellers. If you can afford the home without the need for a lender, then there is no need for any form of financial contingency. This assures the seller that you will not pull out of the deal due to financial troubles. More importantly, an all-cash offer reduces the hiccups, thereby leading to a faster closing.
6. Waive Inspection or Appraisal Contingency
If you are buying a house in a seller’s market, you may want to sweeten the deal by waiving certain contingencies. Waving contingencies like inspection or appraisal gives the potential home seller an advantage and increases your chances of winning the bid.
By waving inspection contingency, you may not be able to walk away from the contract due to inspection-related issues. However, before accepting to wave any of these contingencies, you should discuss it with your buyer agent for proper help.
7. Don’t Restrict the Seller to a Timeline
Selling a home is a stressful activity and time for any home seller. Limiting the home seller to a specific timeline may affect your chances of winning in a multiple offer situation. Sometimes a home seller may require weeks or even months before moving out after selling their home. Giving the seller the gift of time may be all you need to make your offer stand out from your competitors.
When buying a home in Atlanta, you should endeavor to hire a local real estate company to help you with the buying process. Working with a local real estate agent will help you save money, time and get you the best property deal.