A new study shows Atlanta homeowners are willing to pay a premium for their dream home
More and more individuals and Atlanta residents are looking to purchase a home during the Spring season. Spring seems to be the ideal time to buy a home and settle into a new routine. However, as homebuyers are gearing up for a busy Spring home buying season, approximately 70 percent of Atlanta residents are expecting the home purchasing process to be challenging. This difficulty according to the Georgia Multiple Listing Service is because of Atlanta’s shortage of homes for sale which was the most severe in the country as of May 2016. This report is good news for sellers.
The shortage of housing inventory is so drastic it has been labeled as historic. This has caused bidding wars to become commonplace in purchasing a home once again, especially now that the next hot buying season is upon us.
A new study completed by the online brokerage: Owners.com including individuals in Atlanta recently studied over 1,200 people who were considering purchasing a home this year. One of the conclusions was that 70 percent of potential Atlanta homebuyers were becoming anxious, as they are expecting the home buying process to be stressful and drawn out.
This study also showed that nearly half of potential homebuyers in Atlanta are expecting bidding wars to cause their dream home price to skyrocket. In addition, more than half of those surveyed fear becoming “house poor” or being stuck in a mortgage that would lead them to struggle with their finances.
Although potential homebuyers are anxious about the process of purchasing a home because of the lack of homes on the market, 63 percent of them are willing to stretch beyond their budget and pay a premium for their dream home. They are willing to stretch beyond their set budget in hopes of winning their dream home in any bidding war that may take place. This budget-stretching is because homeowners are aware that during the bidding process the prices of the home can go up by a few thousand dollars at a time. Therefore, when presented with the home of their dreams, they want to be able to afford it during any increases in the bidding.
In spite of this, the real question may be how much are potential home buyers willing to go over their budget to secure the home of their dreams? According to the study done by Owners.com “Atlanta consumers are willing to go $37,213 over budget to get into their dream home.” Although this number may seem high, Atlanta residents know it may be necessary to invest more than their budget to get the home they desire.
This figure may seem extreme to many homebuyers outside of Atlanta. However, Atlanta residents will disagree as the lack of homes for sale has caused many of them to delay vacations and/or tighten up their finances in hopes of having the right amount of money set aside to secure the home of their dreams during the bidding process.
|About The Author
While I am not a native Georgian, I have lived in Atlanta since 1991. I was born and raised in Brisbane, Queensland, Australia, then relocated halfway across the world when my family decided to open a business here in the United States. I have lived in the Atlanta metro area since coming to the States and know the area like the back of my hand. I have been licensed and selling Real Estate for over 15 years, and absolutely love my job! I truly enjoy working with people in the quest to sell their current home or purchase the perfect new home they´ve been dreaming of. When I first started my Real Estate career, I worked with one of the highest-producing teams at the largest real estate office in the state of Georgia. While I worked there, I was mentored by an incredible team of successful agents on the "P´s and Q´s" of real estate. It was a wonderful learning experience for me, and ultimately helped me become the dedicated, understanding, and knowledgeable agent that I am today.