In a seller’s market, it’s almost impossible to put in an offer and not have to worry about competition. Even if you’re willing to pay the asking price, a bidding war might stop you in your tracks.
What Is a Seller’s Market?
When more potential buyers are searching for homes than there are available for sale, that’s known as a seller’s market. Currently, this is what the housing market is experiencing in Atlanta.
During this time, sellers may see offers to pay their listing prices. However, many enthusiastic buyers will make offers above the asking price. That means your offer needs to be attractive so it stands out above the rest.
According to John Adams, an Atlanta real estate expert, this is the first time he’s seen sellers get multiple offers on their homes so fast in the 45 years he’s been in the business. These days, supply just doesn’t meet demand in the metro Atlanta area. And professionals don’t see that changing anytime soon.
5 Tips for Getting Your Offer Accepted in a Seller’s Market
Here are five effective tips for making your offer stand out and shine so brightly that the seller accepts it:
1. Offer the Seller Above Asking Price
Your local Atlanta real estate agent will help you understand home values and comparables in your area. If you don’t have an agent, you need to research the numbers before making an offer.
Metropolitan Atlanta home prices rose by 24% in 2021. That’s an average of 2% each month. In other words, if a seller has a home listed for $350,000, and you offer $370,000, you’ve made up the $20,000 in just three months.
2. Make an Offer Without an Inspection Contingency
Sellers want to get their homes off the market as quickly as possible for the highest price possible. One of the greatest fears most sellers worry about is a buyer refusing to purchase the home because the inspection shows a bunch of things that need repairing.
Promising to buy the home without an inspection makes your offer stand out from the rest. You are promising to buy the property “as is,” which is always attractive to sellers. However, if you do choose to go this route, be sure to do a thorough inspection of the home when viewing it to ensure you’re not buying a money pit in this seller’s market.
3. Increase the Earnest Money Deposit
Your earnest money deposit is a way of giving the seller confidence that you do not intend to back out of the deal. A $10,000 cash deposit is one thing. But imagine how much your offer will stand out if you put down $60,000 in earnest money.
Now, that’s an effective way to get your offer accepted. However, it can be tough getting these deposits back… if at all. So, be absolutely sure this is the house you really want to buy.
4. Write a Heartfelt Letter to the Seller
Try tugging at the seller’s heartstrings by writing a personal letter pleading for any type of personal consideration. Tell your story and explain why you and your family are the perfect occupants for the home.
Although most professional real estate agents insist this rarely works. This is especially true for sellers who don’t wear their hearts on their sleeves. But it can’t hurt to try, especially in a seller’s market where your story just might make your offer stand out.
5. Make an All-Cash Offer with No Loan Contingencies
All Cash Offers are very popular these days in Atlanta’s seller’s market. Making an offer to pay cash for the home puts your offer above those that may find it hard getting approved for loans. So, how do you pay cash for a home when you don’t have hundreds of thousands of dollars in the bank?
- Home Equity – Refinance property you already own. Transform that equity into cash to buy the house you want to pay all cash for.
- Rent to Own – Some companies will pay cash to buy the home you want, rent it out to you, then sell it to you when you’re ready.
Rent to Own for All Cash Offer in a Seller’s Market
There are multiple programs on the market that allow buyers to get the homes they want now while securing financing later. These programs are known as a lease with the option to purchase or rent to own or seller financing.
Today, we’re discussing three of these programs. With both of these programs, you choose the home and lease the property until you’re ready to buy it. A portion of your monthly rent is placed in a savings account that goes towards the purchase later.
This company markets itself as a full-service project management company. The main function of Revive is to help homeowners fix up their property, so the real estate is worth more on the market.
However, they also provide sellers with all-cash offers to help buyers get into the homes of their dreams. They pay cash to the seller and your rent the home from Revive for up to 12 months. Then, you have the option to purchase the home for the same amount Revive paid for it.
Much like Revive, Divvy pays cash for the house, rents it out to you, then allows you to buy it when you’re ready. Oftentimes, people use this option because they need more time to save up the down payment and closing costs, or fix a few things on their credit.
The biggest difference between these two is the time frame. Divvy gives its soon-to-be-homeowners up to three years to make an all-cash offer or qualify for a mortgage to buy the home. You can walk away from the deal at any time and take your savings with you, minus a small fee.
Hire a Buyer’s Agent in a Seller’s Market
Although dual agency is legal in some states, it does not protect both parties during a real estate transaction. If you are hoping to buy a home in the Atlanta market, you need an agent on your side. The seller’s agent can’t fight for your best interests because… let’s face it… that agent works for the seller.
Be sure to hire a local Atlanta realtor you can trust to fight for you every step of the way. Keller Williams agents are trained to keep their clients informed and educated about the entire buying process while putting the buyer’s needs first.
Ready to make the move toward becoming an Atlanta homeowner? With more than a decade of experience in the industry, Kereen Henry Realty is your go-to source for ATL real estate.
Click the button below to download her free guide to buying a home. Or go ahead and give Kereen Henry a call at (404) 210-1674 to get started on the buying process today.