It’s the time of year when your quest for buying the right house may feel like searching for a needle in a haystack. Don’t despair; we are here to help with six tips for buying in a low inventory market.
Your first step should be to make sure you select a qualified agent who is well connected with your market. They will know where to search, the best offers to make, homes not yet on the market, and even more valuable information.
Don’t wait too long: “the house you looked at today and are thinking about tonight, is the house someone thought about yesterday and is buying today”. When there is low inventory, buyers move super quickly to secure a house!
Offer a reasonably higher price for the house than other buyers. Come into the mix with your best and final offer to lay your cards out, to avoid wasting any time, and to beat out the competition who may be waiting for counteroffers. Another possibility is to make a higher down payment, or more earnest money, to show your level of seriousness.
Craft an effective offer letter. Many sellers are still somewhat attached to their home, and can be affected positively by a sweet letter letting them know why their home would be perfect for your family, etc.
Be willing to compromise on closing dates. There could be a myriad of factors that creates a tighter, or looser, date to close for the seller. If they have a contingency that says they need to buy a house before they can close on selling theirs, then you may need to be prepared to push the date out for a bit; or you could close on the house sooner, and rent it back out to them temporarily. Next, the inspection dates can usually be early after going after contract, but sometimes the seller may need more time to prepare or to move out of the house first.
If all else fails, ask landlords renting their houses out if they’d be interested in selling at the moment; sometimes they’re only renting their homes out because they couldn’t sell them before.