A shortage of homes for-sale is creating a roadblock for some would-be home buyers. In some markets, home buyers are left scrambling for a scant number of homes for-sale and that is sending home prices escalating.
“If you’re seeking to purchase a home in an area with tight inventory conditions, it’s important to assume that there is going to be competition from other buyers and be ready to quickly make a solid offer,” says Sharon Voss, president of the Orlando Regional REALTOR® Association.
For buyers to have the best chance, Voss recommends the following when battling low inventories:
- Have finances in order. Buyers should know how much house they can really afford and repair any credit issues. They should have their down payment ready to help avoid any delays.
- Get pre-approved. A pre-approval for a mortgage is a step beyond getting pre-qualified and can put buyers into a better position.
- Identify contingencies. Buyers should know their contingencies are and which ones they will refuse to negotiate from.
- Make your list. Home buyers would be wise to determine which home features are a “must have” and which features are a “nice-to-have” upfront so they can move more quickly in finding a home.
- Make your best offer. In hot housing markets, buyers may not get a chance to make a second offer. They may be wise to submit their very best offer at the start.
- Be ready. Buyers in tight housing markets need to be easily accessible and prepared to make decisions quickly. They may need to respond fast to any questions about their offer if they don’t want to risk losing out.
Source: “Here Are 7 Tips to Secure a Home When Inventory Is Low,” HousingWire (Dec. 4, 2015)