A booming real estate market can present plenty of challenges to homebuyers, one of which is low inventory. When you find yourself in a highly competitive market that faces a shortage of listings, it’s important to work with an agent who has an in-depth understanding of how to navigate the situation. Following are several tips to help ensure you can achieve your goals, even when facing low inventory.
Ask About Pocket Listings
In the luxury sector, in particular, it’s quite common for sellers to quietly list their property rather than blasting it all over the internet. A savvy real estate agent who’s plugged into the local market can help get you access to these pocket listings that are discreetly marketed by word-of-mouth. Furthermore, your agent should also be able to keep aware of any pre-market listings that are ready to be listed but not yet marketed online, to help you get a jump start ahead of the pack.
Get Ready to Act Fast
In a hyper-competitive market, speed can make all the difference. That’s why it’s always a good idea to get pre-approved for a mortgage even before you find the ideal home so that you know exactly how much you can offer and are positioned to act quickly when the time comes. The last thing you want is to miss out on an opportunity while waiting to get approved.
Make a Strong Offer
When sellers receive multiple offers, it’s not always the highest one that’s the most appealing. In fact, there are other ways to set your offer apart, such as making a cash offer or waiving contingencies. In the event that another buyer offers the same amount, this can give you a competitive advantage.
Be Prepared for a Bidding War
No buyer wants to find themselves in a bidding war for a property, but it’s all too common in a market with low inventory. If this happens, it’s important to know your limit beforehand and take the time to consider what the home is worth to you versus its current market value. After all, it can be difficult to put a price on the perfect home, especially once you’ve started getting attached to the idea of it.