Navigating a Real Estate Market with Low Inventory

Navigating a Real Estate market with limited inventory can be an extra challenge along with a pandemic we have been facing for almost a year now.  With many homeowners that have decided to refinance and stay in their homes and/or either change a guest room into an office or finish an unfinished space, homeowners still may not be so keen on selling and moving now. All of these factors have contributed to the low inventory.  If you are a buyer in this market, please read the few tips to help you in these challenging times.

1:         Pre Approval letter: 

I always tell my clients to have a mortgage pre approval letter in place and to make sure  all the necessary paperwork is sent to their lender.  Most importantly I try to stress to not enter the housing market until you are fully financially prepared.  It is important to make sure you have a solid down payment and an established relationship with your lender.  This is very important because in this market you are unable to look at any homes without a recent pre approval letter.  If you are a buyer with an expired letter you may be able to get into a vacant home but in many cases sellers are asking their listing agent to do their due diligence in making sure buyers who are entering into their home are non symptomatic and that they are serious buyers by proving this with their pre approvals or proof of funds.  

2:        Know what you can afford and avoid homes at the top of your budget:

As a buyer it is important to know what you can afford.  It is also important to be realistic.  You as a homebuyer will find that finding that perfect house is hard to come by.  When you walk into home it is important to keep an open mind and focus on how that home meets your criteria.   A buyer needs to be open to making changes as to make it that home they dream of.  There are different loans options that are available. I also think it is important to stress that though with lower interest rates a buyer’s price point may go up but in reality in this market with low inventory houses are selling over asking price due to the competition with other buyers.  I believe it is wise to stay away from homes that are at the absolute top of your range.  As a buyer it is important to have some flexibility with so many homes going into the highest and best.  If you are only looking at homes at a higher price point you will find yourself always getting outbid. 

3:  Put your best foot forward:

With such low inventory it is crucial that you as a buyer put your best foot forward.  There are many different strategies and every buyer’s situation is different.  There are things such as Escalation Clause to help win highest and best if the seller is willing to accept it.  Sometimes it is more than just money like terms such as a flexible timeframe or a quick closing.  Another suggestion is accepting a home “as is” as to not pick apart an inspection and use it to renegotiate the offer that was accepted.  

4: Be ready:

It is important as a buyer to be ready to move because most buyers and sellers have contingencies on other contracts that restrict the amount of time they have before they can close.  You as a buyer must be ready to move quickly.  Have your inspection done immediately after an offer has been accepted.  Don’t wait a few days only to be updated that another offer higher has come in and bumped you. It is important to work with an agent that moves quickly to help you into a home.  

Buying a home is possible but you must be prepared.  If a home hits the market that you want to see I recommend that you look at it ASAP.  Remember if it’s a good home it moves quickly so making an offer quickly is another strategy.  If you ask any of my clients they will tell you that I am persistent and will work hard whether it’s buying or selling your home.  

Lastly,  feel free to call me, text me, email me as I will work with you in making your next step in buying a home possible.

Stay safe and well!