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7 Ways Metro Atlanta Homebuyers Overpay
Metro Atlanta homebuyers often undermine their own best interests and end up overpaying for a home.
First-time homebuyers, as well as those looking in a hot market, are susceptible to overpaying because they have a hard time exercising discipline when it comes to price.
Any buyer can make a mistake, and if they don't keep a level head, that mistake can end up costing them a lot of money. And when buying a home, you may not get a do-over.
This month, we're devoting our entire newsletter to helping Metro Atlanta homebuyers not overpay for their home.
1 – Open House Fever
Sellers oftentimes use open houses to drum up interest in their property. But looked at from a buyer's point of view, open houses should be a big caution flag.
Oftentimes, with a lot of people milling around in an open house, it brings out the competitive nature in all of us, and it's all too easy to end up overpaying because of the hype.
Thankfully, open houses aren't mandatory. If you're interested in a property, we suggest that you ask for a private showing where there are no distractions like food, music or overly enthusiastic looky-loos.
Even in a private showing, buyers need to be conscious of staging techniques that are often designed to wow them into complacency.
Remember, that staging look is not how it will be when you live there. Those are topical treatments to make a house look good. Keep a level head on your shoulders and examine the basics like plumbing, roof, electric and the foundation. Once you see the underside of a home, you'll be less inclined to overpay.
2 – Not Being on the Same Page
If you're buying real estate with your significant other, you'd better get on the same page or you'll end up stretching your wish list — and that will cost you.
If you're staying in a home for a while, why overpay for a one-year advantage, like being close to a school when the child is going to be moving on to another school anyway, or graduating soon. Discuss your timelines and long-term goals, then go looking for a home.
Make separate lists of your wants versus needs, then rank them from most to least important, and compare.
After visiting homes, check back with your lists. You'll be amazed at how adaptive they can be, so keep an open mind. For some Metro Atlanta homebuyers there are things that are worth overpaying for, but you need to know what that is for your spouse, and you need to set boundaries so you don't overpay on everything.
3 – Being in a Hurry
Typically, Metro Atlanta homebuyers spend months or more searching for a home. But not all buyers have that kind of time, especially if the purchase is driven by a life change, such as a new job or a divorce.
Any time a lengthy process is condensed into one or two weekends, the potential for mistakes is greatly increased. If not handled properly, a rushed purchase during a potentially stressful life change can often lead to buyer's remorse on multiple levels, including overpaying or choosing a home in the wrong location.
A Metro Atlanta homebuyer in a time crunch can mitigate the problem by working with an experienced agent who is active in the area, like we are.
We may have specific knowledge about a property that can be advantageous to the you as the homebuyer, especially if you're on a tight timeline. It could be that we know of a house that's a better fit, or we might have a local's understanding of maintenance issues, for example.
4 – Making Lowball Offers
Unless the home you're looking at has been sitting on the market for months or more without so much as a nibble, we will most likely advise you against making a lowball offer, which is substantially below the asking price. Lowball offers really aren't offers at all because sellers either don't take them seriously or see them as an insult.
Besides the high likelihood of losing out to a higher bidder, the big risk is starting off on the wrong foot with the seller. If the seller gets insulted, or feels that yours is not a serious offer, they are less likely to respond with a reasonable counteroffer, and you've basically shot yourself in the foot for any further communications from that seller.
While that doesn't mean the deal is dead, it can mean that the seller will be reluctant to negotiate when you make a serious offer. By starting off with a respectful offer, even if it's below the asking price, Metro Atlanta homebuyers create an opening to adjust the price downward as the deal moves toward closing.
5 – Not Knowing the Neighborhood
When you don't know an area, you won't know a good location from a bad one, and that ignorance can cost you.
It is always best to be a well-informed buyer, but obviously this doesn't always happen.
There's a simple solution — work with an experienced agent like us who knows the Metro Atlanta area.
If an agent can't provide additional details about a particular neighborhood or doesn't seem to know the community, it's best just to move along and find an agent who does. Hyperlocal knowledge can help buyers find the best listings and secure the right price. We know the Metro Atlanta neighborhoods you may be looking at well… so we can provide you with expert knowledge of the area you may not get elsewhere.
6 – Bid Fatigue
In a competitive market, it's not uncommon for buyers to spend months making offers on multiple homes. The process can be exhausting, demoralizing, and expensive.
Metro Atlanta homebuyers can most definitely get fatigued in this market. Bidding on homes and not getting anywhere can be very frustrating, and sometimes that frustration does cause buyers to up their budget.
Increasing your budget isn't necessarily a bad thing, especially in a competitive market. The key is staying within an affordable range.
We strongly advise buyers against overpaying just because they're worn down. It makes more sense to either rethink your wants and needs in a home, or even consider sitting it out a bit, if you're able to do so.
7 – Falling for the Goalpost Shift
A deal is supposed to be a deal. But in extremely competitive markets, sometimes sellers renege after accepting an offer, only to jack up the price. The phenomenon is common enough to have a name: the "shift-the-goalpost sale." Unfortunately, some buyers do fall for it.
Sometimes, Metro Atlanta homebuyers put up with sellers reneging on offers because they fear losing out on the property or just don't want to go through another round of searching. But, buyers can end up paying tens of thousands of dollars more when they continue negotiating with sellers who reneged on accepted offers.
What's a buyer to do? Taking legal action likely just means more money spent on lawyers. Instead, buyers need to either take a firm stand and say no, or risk losing the property.
Keep these 7 tips for Metro Atlanta homebuyers in mind before you even start your home search. And depend on us to help you avoid making any of these costly mistakes.