A vibrant city that embodies what it means to be Southern, Alpharetta, Georgia, is a city of just over 67,000 people located just 26 miles from Atlanta. If you’re ready to get out of the big city and enjoy a more relaxed quality of life, or if you want to upgrade to a larger home or downsize to a smaller one, you may face a few challenges. The Alpharetta real estate market is currently very competitive, which means there are more prospective buyers than inventory. Homes tend to sell for around 2% above listing price, and hot homes can easily sell within six days of being listed. However, this doesn’t mean you can’t still find and buy one of the Alpharetta homes for sale that meets your family’s needs. Here are some tips that will help you navigate the competitive market when trying to buy a home.
Get Pre-Approved
Pre-approval, which is recommended no matter what the market is like, is absolutely necessary in a strong seller’s market. Sellers are unlikely to consider an offer from a buyer who is not pre-approved for a loan as they are unwilling to run the risk that financing will fall through. Fortunately, it’s relatively easy to get pre-approved. You simply need to visit the mortgage lender of your choice and present them with documentation of your debt-to-income ratio, employment history and proof of income, and proof of assets. Your lender will also pull your credit score and credit history. To qualify for a conventional mortgage, a score of 620 or above is generally required. Finally, you will need to provide your Social Security number and driver’s license and fill out any forms the lender requires. Once approved, you will get a letter of pre-approval that you can take with you when you start looking at Alpharetta homes for sale.
Know Your Needs and Wants
In a competitive market, inventory is limited. It’s important to realize that you may not be able to find Alpharetta homes for sale that check off every box on your wishlist. Before you begin your home search, sit down with your Alpharetta real estate agent and go over your needs, such as the school district and number of bedrooms. Then create a list of wants. This list could include items like a swimming pool, eat-in kitchen, or dedicated home office. Keep in mind that you can always add your dream amenities later if you decide to renovate the home you buy. Creating a wants and needs list will help you manage your expectations and assist your agent as they look for homes on the market you will be interested in.
Understand and Communicate Your Budget
In a competitive market, homes can quickly sell for above listing price, multiple offers on a home are common, and bidding wars are possible. All of these factors can lead to you spending more than you are comfortable with if you don’t limit what you can spend on Alpharetta homes for sale. Keep in mind that the amount you are pre-approved for is not the same as the amount you can actually afford. It’s important to sit down and figure out your monthly budget and how a mortgage will play into that. If this is your first home, don’t forget to factor in additional costs of owning a home like insurance, maintenance, taxes, and HOA fees.
Once you’ve set the upper limit of your budget, talk with your Alpharetta real estate agent, so they are aware of what this limit is. This will help them be your advocate in the case of multiple offers or a bidding war.
Make a Fair, Clean Offer
A seller’s market is not the time to try to score a deal on Alpharetta homes for sale. With most homes selling above the listing price, your initial offer should be at least what the seller is asking for it. In some cases, you may even want to consult with your Alpharetta real estate agent and offer more than the listing price to prevent getting beaten out by an offer from another buyer.
In addition to offering enough money, you need to also consider leaving out contingencies. Common contingencies based on obtaining financing or on home inspections can weaken the deal in the seller’s eyes and cause them to accept an offer without these caveats. Though you may open yourself up to some risk when you buy Alpharetta homes for sale without contingencies, it’s sometimes necessary in a competitive market.
Work With an Experienced Alpharetta Real Estate Agent
Though it’s always recommended that buyers work with an agent when purchasing Alpharetta homes for sale, it’s vital when you’re trying to buy in a competitive market. Your agent can ensure that you know about houses that have just been listed, will soon be listed, or won’t be marketed or listed to the public at all in something called “pocket listings.” This will help you get a jump on your competition when it comes to making offers on homes you are interested in. Your agent can also help you craft an offer that will be appealing to the seller, guide you through a multiple-offer or bidding war scenario, and ensure you have everything you need when closing on your new home. Finally, your agent can help you sell your current home if you’re attempting to buy and sell houses simultaneously.
It may be more challenging to buy Alpharetta homes for sale in a competitive market, but you can still find the house of your dreams when you follow the above tips. If you’re ready to take the next step and begin looking at homes in the area, reach out to an experienced Alpharetta real estate agent like Trish Hauser for first-class guidance.
