Tips for Buying a Home When Inventory is Low

Inventory in the real estate market has tightened up, making it increasingly challenging for buyers to find properties and get their offers accepted, despite the high interest rate environment.

When buying a home in a real estate market with low inventory, there are certain steps you can take to ensure you get the best deal and find a property that suits your needs. Here are the top tips for buying a home when inventory is low.

Get Pre-Approved

Before beginning your hunt for a house, you need to start by connecting with a mortgage broker and getting pre-approved for a mortgage. A mortgage pre-approval gives buyers a definite budget that they can work within. Furthermore, it means that they are ready to make an offer on a property as soon as you find one that fits your needs.

Create a "Must-Have" List and a Wish List

Buyers can often get overwhelmed by options and the market and forget about what matters most to them in a property. So before you start browsing properties, create a clear list of features that are a must-have in a property. These features could include three bedrooms, a home office, or a garage. Next, expand on your list of must-haves by creating a wish list of like-to-have features, including extra bedrooms, a pool, or a large backyard.

Allow these lists to be dynamic, but also use them as a guide to prevent you from being drawn in by a beautiful property that doesn't fit your needs. Having these two lists ready can help buyers focus their search and prioritize what matters most.

Explore Nearby Neighborhoods

If you are having trouble finding homes that fit your criteria in the neighborhood of your choice, consider expanding your search to nearby neighborhoods. You may find more options and more competitive prices or more options in these areas. Sometimes, changing neighborhoods by just a few blocks will open up a variety of options.

Look at Fixer-Uppers

If you can't find the perfect home in your ideal location, consider looking into fixer-upper properties. Often there is less competition for fixer-upper properties, and they can stay on the market longer than updated properties. Buying a fixer-upper can be a great investment and allow you to make the property your own through renovations. However, this option comes with extra costs and potential construction, so it's important to ensure you have a comfortable budget to make the changes you want.

Don't Shop at the Top of Your Budget

It can be easy to get caught up in a competitive market and try to stretch your budget too far. If you find yourself shopping at the top of your budget, consider taking a step back and re-evaluating what is most important to you. This can help keep buyers from overspending and help them find a home that is within their budget.

Be Ready to Move Quickly

When you finally find the perfect property, it's important to be ready to act quickly. Many offers in competitive markets and markets with tight inventory are accepted right away. Hence, buyers need to be prepared with pre-approval and everything else they need to make an offer immediately. Work with a licensed real estate agent who can help you decide on the best strategy for making your offer and compelling it in a competitive market.

Work with a Licensed Real Estate Agent

Buying a home in a market with low inventory can be difficult without the help of an experienced real estate agent. A professional agent can provide valuable insight into the current real estate trends and will know what to look for when shopping for a property. They can also guide buyers through offer negotiations, helping them get the best deal possible. Connect with The Yates Team to find out how we can help find your dream property while inventory is tight and the market is competitive.