After trolling around listing sites for weeks, maybe months and reaching the point of realization that there are not many houses to choose from, you may think to yourself that you will never find a house. The number of homes available to first-time homebuyers has dropped 12.1% since 2012. So, when you find a starter home while scouting neighborhoods that have a low housing inventory, always remember that it’s an available option. Here are some tactics to navigate the low housing inventory landscape:
1. Offer a Higher Price (within reason)
Supply and demand tells us that prices rise when inventory is low and demand is high. When you offer a higher price, make sure you can afford it and receive a bigger mortgage. A buyer that offers $5,000 down looks more serious than a buyer that offers $1,000. Having money saved up to make up the difference if the appraisal happens to be below your offer is also important.
2. Be Patient, but Act Quickly
You should always be prepared to make an offer on a new listing. Although this must be the case, you must understand that not every deal may be the best for you, or your offer may be turned down. Your patience and persistence will pay off in the end.
3. Be Flexible on Closing Dates
When closing you want to speed up the process by shortening the timeframe of the inspections. A week is plenty of time for a termite inspection as well as a home inspection. You will be able to close even faster if you are pre-approved. This way, your mortgage lender will have everything in hand to start underwriting your mortgage.
4. Rent the Home Back to Sellers
Give yourself a competitive edge by offering to rent back to the sellers while they wait for their move-in date, of course this means you’d have to postpone your move in date. This way the sellers get some leeway, they don’t become homeless, and you get to make some money.
5. Write a Great Offer Letter
When crafting an offer letter, you should make sure you put some emotion into it. This has been a family’s home for years and they don’t want to see something they love so much, go to people who are emotionless robots.
6. Approach Landlords
Not all landlords want to be in the rental business. Some landlords who are unable to find a tenant(s) would be happy to take you up on your offer. Sure, sometimes you might get shut down, but you never know, you might get lucky.
So if you need help finding your dream home or are ready to start the path to homeownership, give us a call today at (800)-444-RATE or online at https://www.gomortgage.com/apply