Home Buyer ResourcesMarket Updates April 18, 2018

Being Ready for the One: Acting Fast in a Low Inventory Market

3 ways you can be ready to put in an offer when you’ve found the perfect home

If a house is priced correctly, and there is high demand for an area – it’s essential that you act quick in putting in an offer or you might just miss “the one.” This is particularly true in a low inventory market. A low-inventory market exists when there is greater demand than there is a supply of homes (Learn how to evaluate the market in our blog – Determining if it’s a buyer’s or seller’s market). So how can you be ready to put in an offer when you find that perfect home?

1. Find a Realtor

The first thing you want to ensure is that you have a Realtor representing you. Realtors will help you identify potential relevant properties, answer questions, put in offer paperwork, and assist with the negotiation process. Without a Realtor, you will be stuck learning the process, and laws while others are putting in offers to the house you want.

 

2. Plan for Current Living Situation:

Coming up with a Plan for Current Living SituationIt may seem like common sense, but before starting the search for your next home put a plan in place for your current living situation. If you own your home, this means selling your current home. Your Realtor can help you by providing comparable properties in the area, as well as help you identify potential renovations and repairs to maximize your home’s value. Realtors can also help save headaches by helping you source and coordinate with contractors. Lastly, and most importantly your Realtor will assess and price your home. A common reason homes do not sell or take longer to sell is that they’re not priced correctly, thus it’s important to be accurate. Furthermore, many sellers are wary about offers with a contingency based on the sale of their current home, and so it’s best to have your house sold first to avoid issues with putting in an offer.

 

3. Get Pre-Approval:

Some homebuyers desire to start viewing homes prior to getting pre-approval, however, what they likely do not realize is that this delays your ability to put in an offer on a home when you find one you like. With high-competition in a low inventory market, you could end up losing the home you want. Additionally, it’s important when you begin the process of selecting a lender to choose a reputable lender. There are many lending institutions in the marketplace now that do not ask for supporting documentation and don’t do additional verification like credit checks, income, and asset verifications to determine your pre-approval amount. This could potentially be an issue if your pre-approval amount drastically differs from the verified pre-approval amount.

Looking to get started with your search for “the one”? Find a Realtor that’s right for you here.