In response to the growing challenges presented by COVID-19, interest rates are getting lower and lower. As a result, existing homeowners and prospective buyers have shown an increased interest in real estate. With more people buying and selling their homes, inventory is scarce. While this is great news for the real estate industry, it means slim pickings for those browsing the market. If this rings true for you, here are some tips on how you can navigate a market with limited inventory with ease.
Secure Your Finances
Buying a house is a tremendous financial endeavor, so you want to be sure that your finances are in order. Without financial security, you’re liable to be indebted to your lender indefinitely. With that said, review your expenses, and come up with a sensible spending plan. Not only will this make you more favorable to mortgage lenders, but it’ll also ensure that you don’t deplete your savings. If you don’t consider yourself financially savvy, seek counsel from a trusted adviser.
While it may be tempting to go with the house of your dreams, logic should never take a back seat. In other words, be realistic about what you can afford. Otherwise, you’re bound to take on a financial burden that’s not feasible. Once you’ve set a budget, don’t modify it. By living within your means, you’ll have deep enough pockets to buy your dream home down the line.
Make Your Offer Count
Low inventory markets are highly competitive, so you’ll need to play hardball. While negotiating is typical during these affairs, markets in this state are handled differently. If you’re serious about buying a home, don’t dawdle. It’s also wise to avoid traditional selling and persuasion tactics. Simply put, make an offer that the sellers can’t refuse, and you’ll be signing the closing documents in no time.
With low inventory markets, real estate is in high demand. Therefore, houses tend to sell over their asking price. When making your budget, don’t overlook this detail. When the time comes to make a winning offer, you’ll find great comfort in knowing that you budgeted accordingly.
Be Prepared To Move Fast
When buying a home in a low inventory market, everything is fast-paced. Real estate agents, sellers, and lenders like to expedite this process so that they can satisfy growing demands. Once the process is underway, start preparing for your upcoming move. In addition to being practical, this will also provide you with great peace of mind when the closing date rapidly approaches. To get a feel for the timeline, ask your lender how quickly they can close the deal.