How To Buy A Home When Inventory Is Low In Long Beach
The housing market fluctuates, but the recent trend of fewer homes on the market seems to be lasting longer than normal. The current low inventory of homes is caused by two major factors. Right now, mortgage interest rates are low, which floods the market with buyers who want to take advantage of the opportunity to secure a lower-cost loan. The coronavirus pandemic also affects the inventory because fewer sellers feel comfortable planning a major move to a new residence. Trying to buy a home when inventory is low presents a few challenges that are all easier to overcome when you know how to adapt to the changing times.
Get Your Finances in Order
Time is of the essence when homes are selling fast. One mistake that many buyers make is failing to see the importance of getting pre-mortgage loan approval. Having this important documentation available along with a decent-sized down payment helps you stand out to sellers when you make an offer.
Keep an Open Mind
If most homeowners were honest, they’d tell you that they didn’t get everything they wanted when they bought their house. With fewer homes available, you might need to lower your expectations slightly and consider a home that is less expensive than your budget allows. Homes for sale in Long Beach might also need a few renovations to make them fit your vision. Being flexible enough to consider the potential of a home helps you open up more options.
Avoid Trying to Max Out Your Budget
Bidding wars can cause home prices to rise higher than you anticipated. In a crowded market, it is possible that you could come across some serious competition. Looking for homes in the low to mid-range of your budget helps you to be able to make a slightly higher bid without pricing yourself out of the running for buying the house.
Make a Solid Offer
Trying to lowball an offer in anticipation of a negotiation rarely works well during low inventory markets. Instead, a seller might ignore your offer and move on to the better one. This is why you’ll want to work with your realtor to make sure that you put a firm and respectable offer on the table. They can also help you find other strategies to help get your offer accepted rather than trying to play a gambling game with your bid.
Be Ready to Move Forward Fast
In most cases, buyers and sellers are also working under the time constraints of other contracts regarding when they close on a sale. If possible, ask if your lender can run your loan pre-approval through an underwriter so that everything is ready to go when the time comes to close on the house. Being ready and willing to close fast on a house could be what it takes to make it yours when time is an important factor to the seller.
Inventory might be low right now, but that doesn’t mean that you can’t find a home. Making sure that you stand out as a qualified buyer and keep a realistic mindset helps you find a house no matter how many homes are on the market.