How to Buy a Home When Inventory is Low
Jun 10, 2022
In today’s sellers market, inventory is lower than ever as demand for homes only continues to increase. In fact, so few single-family homes are for sale in America that just two months of inventory is available across the top 100 metro areas in the country. This is a historic low.
While sellers have minimal concerns in this type of market conditions, buyers are a whole other story. Buying a home when inventory is low is a challenging process. Most buyers spend several months putting in offers on multiple listings only to find themselves losing out to other homebuyers in competitive bidding wars.
So how does one successfully buy a home when inventory is low? Let’s find out! Here are a couple buying tips to make the process easier and more affordable so that you can settle into your dream home sooner rather than later.
Expand Your Location Preferences
Expanding your geographical location may be tricky if you are set on living in a specific area. If location isn’t everything, explore the available homes beyond your desired neighborhood. Expanding your search will offer a mcuh wider variety of home opportunities that could potentially be a better fit to your family’s wants, needs, and budget.
You may be able to find a deal in an up-and-coming area that would be a good opportunity to invest. You may find a home that is a bit further out of the way but offers everything else you are looking for. At the end of the day, you never know what you may find if you broaden your home search location. If anything, looking other locations can help you solidify your needs and wants for your future home.
Offer a Higher Price (Within Reason)
With low inventory comes high demand and high prices. As a buyer, you’ll be competing with other buyers that are putting offers on the same homes as you. With multiple competing offers likely on the table, it’s in your interest to put your best foot forward and make a winning offer. This is especially true if you happen to come across a home that checks off all the boxes. Reasonably making a higher offer on a listing may secure you the home of your dreams.
Of course, you don’t want to put an offer on a home beyond your set budget. That is why it is important to be financially stable and have a clear understanding of your budget before you start house hunting. Try to avoid homes priced at the top of your budget. Having some wiggle room there gives you the ability to put in a higher offer if needed and set you apart from other buyers.
Be Patient With the Process
With fewer homes on the market, you may be tempted to lower your standards and settle on any house you can find that will accept an offer. Some of you may even be tempted to give up on the idea of buying a home altogether. Don’t let the crazy frustrations of today’s market hold you back from finding your forever home. Resist the temptation to throw in the towel by being patient with the process.
Buying in today’s seller’s market isn’t easy, but it is worth it if it leads you to your dream home. While being patient, it is important to make sure that you are also being proactive. Stay active with your home search and be ready to look at a house as soon as possible after it is listed. This may require you making yourself available after work or on weekends, but it will help you to get ahead of other competing buyers.
Work With and Experienced Agent
We can’t stress the importance of working with an experience agent, especially when dealing with low inventory. Real estate agents have a wealth of knowledge and market experience to navigate this kind of inventory situation. Being in the real estate world, they are on top of the changing market conditions and can help guide their clients through them with ease.
Our agents at SimpleShowing can not only help clients search for homes and write up offers, but they can also help them save money in the process. With our Buyer Refund, homebuyers can buy any home and get their agent's commission back at closing. That’s an average of $5,000 to use towards closing costs, renovations, moving costs, or save for a rainy day.
Buying a home when inventory is low might require some flexibility, patience, and persistence. But if you can stick it through, you are sure to find the home you are looking for. Ready to take on today’s seller market? Contact us today to connect with an agent to get a head start on your home search!