Buyers typically struggle with finding the ideal home in a market where the number of homes on sale continues to decline. With home prices on the rise in a low inventory market, competition for real estate property among willing buyers is intense. Here are some tips you should consider when buying a home in a low inventory market.
Allocating the budget
You need to be clear in your mind about the amount you are willing to spend on the purchase of your home. Once you finalize a figure, set this aside for the down payment rather than utilizing it for other significant purchases. The budget you set aside at this point in time proves especially helpful during the underwriting process. It is important to note that the more debt you maintain, the higher the debt to income ratio which can seriously jeopardize the terms of contract.
Hiring professional assistance
When you are buying a home in a low inventory market, it is important to get as much help as you possibly can. Seasoned realtors can make this process less complicated as they can not only offer tips on how to deal with the rather inclement conditions of the housing market, but also help locate properties that suit individual needs. In addition, they are able to assist buyers with the preparation of all the important documents which may be necessary when making offers as well as counter offers.
Targeting the neglected
When competition for real estate forces buyers into bidding wars, it is especially tough to find a house that fails to sell. However, there may still be some exceptions. For instance, a seller may be in two minds about wanting to sell their property. Consider this an invitation to reach out to this seller and express your interest in the property. There is every chance that the seller could be swayed by the offer you make, so let nothing stop you when the stakes are so high.
Getting pre-approved
The process of pre-approval can prove crucial when buying a home in a low inventory market. The pre-approval process entails the verification of a buyer’s personal assets and income by a lender who runs the buyer’s credit. When you have a pre-approval letter by the lender, it creates a good impression upon the seller of you being a serious buyer. This improves your standing compared to someone who is merely pre-qualified.
If you intend to sell your house in Massachusetts cities like Boston or Newton or on the South Shore, I would love to help. Feel free to call me or send me an email or get in touch on Facebook. For more great tips and local information about Boston and the South Shore, sign up for my monthly newsletter. I promise I won't spam you.