First-Time Homebuyer
By focusing on Dunwoody, Adam and Jessica Graham recognized the choices included older homes requiring updates. Still, they discovered a frenzy of buyers when they first toured the home they bought.
Adam, 31, an auditor, and Jessica, 29, an insurance underwriter, chatted about how they found the home and changes they’ve made.
Q: What did you find on the market?
Jessica: We were very diligent about going out and we really got a feel for the price of the market and what was realistic. In that price range, there wasn’t a whole lot on the market, believe it or not. Rocky [Seaman with Coldwell Banker Residential Brokerage, their agent] called Adam at 3 p.m. and said, you need to come out and look at the house today because it is priced competitively and it is going to go. We were at the house by 5 p.m. There were people in cars waiting for us to get out. We knew immediately within 10, 15 minutes of walking in the home that we wanted to move forward. It was listed at $275,000. At 6:30 p.m., we put in an offer for above the asking price. We had a contract the next day.
Q: Why were you willing to offer more?
Jessica: Even though it’s untraditional, certainly in this market to go over the asking price, we knew the value had far greater potential than what it is listed for. That was recognized by the other potential buyers as well. They were kind of swarming. We figured why not go in above asking price to ensure we were the ones they would want to negotiate with.
Adam: Our top end, if we didn’t have to do anything to the house, was going to be $350,000. But in that area we knew that we were probably going to have to do some work. The price we got it left room for us to make improvements.
Q: What were some major changes?
Adam: The roof needed to be replaced. It had asbestos in the ceilings. It was positive for radon. It’s a 24-year-old air-conditioning unit. There were all sorts of things that were going to be huge expenses.
Jessica: We wanted to completely renovate the kitchen and the bathrooms. The wallpaper had been on the walls for 40 years. We’re really taking on a lot, probably more than a typical first homebuyer would.
Q: How did you factor in those costs?
Jessica: The key to that was it wasn’t an arbitrary number. We had the opportunity to speak with contractors and consult with people that we know and love and trust. We had an Excel spreadsheet of what things were going to cost long before we ever got out of the due diligence period. Adam and I both decided that we were comfortable walking away from the home if they were unwilling to negotiate what the costs were going to be for us to take on projects identified in the inspection.
Adam: We asked for them to pay closing costs and reduce the purchase price to cover some of the repairs.
Q: What’s one of the biggest first changes?
Adam: We removed the wall between the den and the living room. Then we widened the doorway between the kitchen and the dining room. It makes that main floor just a lot more open.
At a Glance
Adam and Jessica Graham’s home, built in 1969 in Dunwoody, has four-bedrooms, two-and-a-half baths and about 2,450 square feet. They purchased in March. Homes in the Hidden Branches neighborhood range from the $320,00s-$420,000s.
