How To Buy A Home In Royal Oak When Inventory Is Low

Houses today are selling faster than ever before, and it is easy to get frustrated when it seems like they sell within minutes of being listed. The current low inventory in the housing market is partially due to the lower than normal interest rates for home loans. Buyers want to take advantage of the chance to save money while they can. The other reason for low inventory is that buyers are more hesitant to sell right now due to the pandemic. Since neither of these situations are going away any time soon, it helps to strategize each aspect of the home buying process.

Establish Financial Security

Having a loan pre-approval in hand lets sellers know that you can buy the house right away. You’ll also want to make sure that you have the funds ready for a down payment. Doing these two simple things makes you stand out from the other buyers. Keep in mind that a loan pre-approval will require you to show proof of your income and other types of documentation of your financial status. Make sure to gather this information before you apply for the loan to move the process along faster.

Figure Out a Realistic Budget

Finding your dream house is rare, and it is even harder to do in a low inventory market. Most homes require some type of fixing up and being open to changing the house later to fit your wants will help you to find one that fits your budget. Having a defined budget also makes it easier to narrow down your options for homes for sale in Royal Oak. Only touring the houses that you can afford saves you time, and you’ll be able to leave time in your schedule to visit houses that just hit the market.

Anticipate a Bidding War

Your first instinct might be to look for houses at the top of your price range, but this doesn’t tend to work well in low inventory markets. When homes are in short supply, you can anticipate being one of several people who make an offer. A bidding war could quickly drive the price past your budget. Start out looking at homes in the lower to mid-range of your budget, and you’ll be ready to go a little higher on your offer if that’s what it takes to secure your purchase.

Make Your Best Offer From the Beginning

Your real estate agent can go over several different negotiating tactics with you, but they’ll likely recommend being straightforward right now. When a seller knows that they have several people interested in their house, they may just pass up your lowball offer and move towards the next person in line. While you may want to leave a little wiggle room to increase your bid, it is generally best to make a realistic offer that is near or above the asking price.

Don’t be deterred by a tight housing market. With a little planning and financial know-how, you can still find the perfect home and get your offer accepted. Starting out with your finances in order and an open mind gives you a competitive edge when it comes to buying a home.