12/25/2023 0 Comments Low home inventoryReal estate markets with low inventory turn over quickly. Sometimes it’s about more than just money - trust and terms also are taken into account. Ask me for more details, I would love to tell you more about how these strategies often win during multiple offers. I will provide the information to you, research about the home, feel out the other agent, and explain several different strategies to you. I have SEVERAL effective strategies to help clients win the homes they want. Most likely, you will be competing against other offers, therefore, there typically isn’t a lot of negotiating that goes on. In low inventory markets, it is critical that you put your best offer forward. In the example spreadsheet above, highlighted in green, you can see that the monthly payment amount for every $10K in purchase price is $30-50/month, depending on the loan program. Also, you won’t fall in love with a house that ultimately, you won’t be able to buy. If you are approved for $350,000 it is wise to look at home $340,000 or less which will allow you to bid a little higher on a house. Therefore, it is wise to stay away from homes that are at the absolute top of your price range. In low inventory markets, houses tend to sell over asking price due to competition amongst buyers. This chart is an example from Tina Mitchell of Highlands Residential Mortgage showing how some of the different loan options can vary.ģ- Avoid Looking at Houses at the Very Top of Your Budget. Get your pre-approval and talk with your lender about your different loan options. Be open to making changes to a home to create the exact home you are looking for. Keep an open mind while looking at houses and understand that the goal is to find a home that meets all of your needs and most of your wants. The truth is the average home buyer does not have an unlimited budget and therefore must make compromises on their home purchase. Most homebuyers do not buy the perfect house. This will help you stand out to sellers when you make an offer on a house.Ģ- Be Realistic About What You Can Afford Do not enter the housing market until you are fully financially prepared with a solid down payment and a reputable loan. Get a mortgage pre-approval and have all the necessary documentation ready to send into your lender. Take the appropriate steps to have your financing secured before you go to look at houses. With regards to home buying during the coronavirus pandemic, read my blog specifically about that using this link. Navigating a market with limited inventory can be an extra challenge, but can be done successfully following the tips below. However, many homeowners already have low-interest rates on their homes and may not be keen on selling and moving. ![]() Buyers want to take advantage of these rates before they rise and are eager to enter the housing market. The largest driving factor lately has been low-interest rates and currently (March 2020) the coronavirus. Several factors contribute to low inventory in markets. Many real estate markets across the United States are currently experiencing low inventory.
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