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Homebuying Strategies for a Low Inventory Market

Updated: Jun 20

Homeownership can feel out of reach when houses seem to vanish in the blink of an eye. According to new Zillow data, the U.S housing shortage grew to 4.5 million homes in 2022 from 4.3 million in 2021. If you're looking to buy in a city that's experiencing a shortage, don't give up. While process is more competitive, it's not impossible. 

Here's a proven game plan for navigating a low-inventory market:

First things first. Get Preapproved.

  • Be a Cash Contender: Getting preapproved for a mortgage shows sellers you're a serious buyer with the financial backing. This can make your offer stand out, especially when competing against cash buyers. You can apply in seconds here and get your application processed in as little as 24 hours.

  • Know Your Budget (and a Little More):  Understanding your true affordability allows you to make strong offers without overextending yourself. Consider potential closing costs and unexpected repairs.

Team Up with a Realtor.

  • Local Knowledge is Power:  A realtor who knows the ins and outs of your target area can be your secret weapon. They can unearth off-market listings and hidden gems before they hit the mainstream. A skilled realtor can craft compelling offers that highlight your strengths as a buyer and advocate for your needs.

Think Outside the Fixer-Upper.

  • Location, Location, Maybe:  While your dream location might be ideal, expanding your search radius can open doors to more options. Consider up-and-coming neighborhoods or hidden pockets with potential.

  • Move-In Ready vs. Sweat Equity:  Be open to homes that might need some cosmetic TLC. Renovation loans can help you finance both the purchase and necessary upgrades.

Stay Agile.

  • Fast on Your Feet:  In a competitive market, speed is key.  Be prepared to move quickly when the right home pops up. Have your realtor on standby for viewings and act decisively when making offers.

  • Embrace Patience (But Not Passivity):  Finding the perfect home might take time. Don't get discouraged, and use the time to refine your search criteria and strengthen your financial position.

Remember: The homebuying journey in a tight market requires focus, flexibility, and a reliable team like us. Check out our reviews here.

By getting pre-approved, partnering with a great realtor, and being strategic in your approach, you can conquer the concrete jungle and find your dream home!

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