Looking to Buy or Rent? Be Ready For a Surprise!!!

The metro Atlanta real estate market is now on the rise. The market hit bottom in 2011 and began it's climb in 2012.  A low supply of homes has now started a wave of new construction that has not been seen since 2006.  Banks are now favoring short sales over foreclosing on homeowners. Some previously upside down homeowners are now able to sell their homes and with rates below 3%, they are able to upgrade the house without upping the mortgage. Investors who purchased within the last 3 years with plans of buying and holding are now unloading properties.  So what does all of this mean for someone looking to buy or renting for the next few years before purchasing?

If you are looking to purchase the market is not a friendly one. There are not as many deals as you may have seen over the last 18 months.  The overall number of homes on the market it down and prices across the board are up.  With an influx of larger investors and second-time home buyers, competition is at an all time high.  This will require diligent efforts of your real estate agent to locate properties within your criteria and you making a QUICK and informed decision on how to bid the most aggressively to beat out the competition.  HUD, Fannie Mae, and Freddie Mac properties are the most favorable route since they offer periods that they will only look at offers from owner occupants. This gives everyone a fair shot at getting their offer submitted, reviewed, and hopefully accepted.  Unapproved short sales still are not favorable route for a buyer looking to move in 90 days or less. Buyers using loans will need to work on saving up more money to cover their down payment along with closing costs in order to make a more favorable offer to a seller. There are a lot of cash buyers so if you're using a loan the competition is fierce.

If you are looking to rent, you will notice that there is an abundance of rental properties now available.  You will see a lot of property management companies with numerous properties and stricter application processes. What you will also notice is that rent rates have become very negotiable since there is a glut of rental properties on the market as a result of the 2008-2011 foreclosure purchases.  As a renter, you will see  properties in better condition and with incentives all in an attempt to steer you into renting.  Always evaluate the fair market rent in an area before looking at properties so you are able to negotiate on the spot when you are viewing potential rentals. If you are a strong applicant (good credit, good rental history, solid employment) or are looking for a long-term lease you definitely have the upper hand in negotiating rental rates. Be sure to include provisions in the lease regarding if the landlord sells the property and that the landlord provide monthly proof that the mortgage(s) on the property are current.