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Lesson 8 of 10

Making Offers in Georgia

Pricing strategies and MAO adjustments for Atlanta metro markets.

MAO Percentages by Market Type

Premium Flipper Markets (65-68%)

East Cobb, Buckhead, North Fulton, Alpharetta, Johns Creek

Higher prices = more risk = tighter margins needed

Standard Flip Markets (68-70%)

Marietta, Kennesaw, Duluth, Buford, McDonough

Your bread and butter - balanced risk and returns

Landlord Markets (70-73%)

Douglasville, Stockbridge, Snellville, South DeKalb

Landlords value cash flow over equity - can stretch

Real Georgia Offer Examples

Example 1: Marietta Flip (30062)

ARV$425,000
× 68% (standard flip)$289,000
- Repairs ($45K rehab)-$45,000
- Assignment Fee-$15,000
Max Offer$229,000

Example 2: Douglasville Rental (30135)

ARV$275,000
× 72% (landlord market)$198,000
- Repairs ($20K light rehab)-$20,000
- Assignment Fee-$10,000
Max Offer$168,000

Georgia-Specific Negotiation Tips

  • 1. Reference county tax assessment - GA homeowners often know their tax value. Use it as anchor point.
  • 2. Mention crawlspace/termite concerns - "We'll need to budget for inspection and possible encapsulation..."
  • 3. HOA disclosure - Ask about HOA fees early. High fees reduce what you can pay.
  • 4. Close fast - GA is competitive - Sellers have options. 2-week close is attractive.

Key Takeaway

Know your market type before making the call. Premium areas need 65-68% to work. Standard flips use 68-70%. Landlord markets can stretch to 72-73%. Always factor in higher repair costs for crawlspace and termite issues.