Investor · Atlanta, GA · Member since 2017 · 58 posts · 18 votes
I'm trying to purchase a home in the Atlanta, GA market. It seems very competitive and I have been told most people are paying over asking price AND paying the difference if the home does not appraise for the contract value. Is this the norm in this market? Anyone with some insight? Thank you!
Yes, this is the norm. Any well-priced home in a decent neighborhood is getting 30+ offers still and the winner is typically either cash with little to no due diligence/other contingencies or conventional financing with either no contingencies or a chunky appraisal gap. Had one a few weeks ago that we went $40k over asking on, cash. Still lost - there were 179 offers...
Don't let this discourage you though. You just have to find a way to get aggressive. And, if you're not able to or just don't want to take on the added risk, don't let the market and other people's panic get to you. Primary residences are almost never smart investments anyways so why make it even less smart, right?
That's assuming you're looking for a primary residence. If you're an investor and really want to snag a deal, we can discuss some creative strategies for this!
Hope that helps a bit - please, feel free to reach out anytime if you have other questions or just want to chat!
Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
5y
Hey Christy - talk to a few agents in you specific city/county before taking this as gospel. Generally, yes most good properties are going above asking with multiple offers. That said, I have landed many deals and haven't had a single client waive appraisal or pay over appraisal yet so there are still many opportunities to not pay above appraisal. I operate in Blue Ridge and Forsyth/Fulton area which are two of the hottest markets in GA. Ask your agent to provide stats on sales price/list price ratios
Property Manager · Atlanta, GA · Member since 2020 · 74 posts · 38 votes
5y
@Christy Holt
Hey christy!
I’m an active agent/property manager in Atlanta.
Each investor buyer I’ve had in this market I’ve been able to find a deal for. We have heard many no’s, but all we need is that one yes.
Most of the offers we have been submitting have been 10-30k over, waived appraisal/financial contingency, or gap coverage.
There are a few places to look that don’t have as much competition, and still make for great investments.
My last deal was in one of Atlanta’s faster growing suburbs, actually got it 5k below contract, the one before that was 10k over asking and the property appraised 10k above that!
Make sure you have an agent who’s going to work for you day in and day out, I’ve had to drive a good five hours/ 150 miles a day to get to the locations that are making deals happen, but that’s honestly what it takes.
Property Manager · Atlanta, GA · Member since 2020 · 74 posts · 38 votes
5y
@Berenger Greer the deals are out there, just make sure you’re leaving no stone unturned.
Consistency and patience, all it takes.
This market, to me, is all about who can bang their head against the wall the most without giving up.
So yes, it’s true, most properties are going insane amounts over asking, but you do need to as yourself, how much over asking can you go before the deal isn’t a deal?