Tips for Buying a Home When the Inventory is Low

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Filed under: Market Comentary

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Last week we shared some statistics about the real estate market and how the inventory is affecting people who are buying or selling a home. To follow-up on this topic, today we are going to look at some of the strategies that can be used if you are trying to buy a home in a seller’s market.

We talked to Brandon Hoke to get his perspective on how you should handle the situation when there is so much competition for a property. For example, what should a real estate agent do if a person wants to buy a property that is $15,000 over the value in the area? There are likely offers on the home, making it hard for buyers to find the right property without spending too much money.

Look at the Comparable Properties in the Area

The best thing that you can do is look at the comparable properties in the area. For example, the real estate agent might compare the selling prices for similar homes in a 1/2 mile radius of the home that you are interested in buying.

If you want to buy a home that is listed higher than the comparable homes, then try to understand why the price is that high. You might be able to find a legitimate reason that justifies the higher price, such as a full renovation or top-notch landscaping in the backyard with waterfalls and a pool. If these features are important to you, then you might consider spending a little more to get the home.

Work with an Experienced Appraiser

Hiring an appraiser is an essential step to evaluate the real value of the home. A good appraiser will understand the market and know how the current trends are impacting properties at all price points. Even if the overall median price point is increasing, it doesn’t mean that your target budget is increasing as well. Sometimes, higher priced homes might hold steady while the lower cost properties are going up.

What it all boils down to is that you need to have a team of experts in the industry to help with your home purchase. Don’t make the mistake of trying to navigate the market without relying on the advice of a real estate agent, mortgage expert, appraiser, and more. The right team can help you pick a property that will be best for your family, while still maintaining your target budget.

Are you interested in learning more about financing options that are available for your home purchase? Talk to us for details about the mortgages that will work best for your family!

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