How Home Buyers Can Navigate Inventory Challenges
Whether you’re in the process of buying or selling a home, or just keep up with real estate news, you’ve probably heard about the lack of inventory in housing markets throughout the country.
While fewer properties on the market means increased competition for buyers, there are still ways for home shoppers to navigate inventory challenges and have an edge in the marketplace. Here are a few tips :
Tap into Pre-Market Opportunities
Pre-market (or private market) listings are homes that are for sale (i.e., there is a signed listing agreement), but are not yet publicly listed on the MLS. As a result, buyers won’t find these listings on major search portals like Zillow, Trulia, or Realtor.com, or national brokerage sites such as Redfin.
This could be for a variety of reasons. For example, a seller may want to do some prep work to get their home ready for sale or may be waiting for spring market. In some cases, it’s the desire for more privacy.
Pre-market listings make up a growing segment of the market, and they are typically on networks only available to real estate agents. And when inventory is low and there is strong competition among buyers, it’s so important to work with an agent that can tap into these networks and keep you informed on new opportunities.
At @properties, all of our agents and their clients have access to Zenlist, a home search app that includes both active listings from the MLS and pre-market listings, all in one collaborative platform. Meanwhile, @properties’ internal @agent app is another resource that helps our agents match buyers with homes for sale. Reach out to an @properties agent to learn more about these networks.
An up-to-date mortgage pre-approval (or proof of funds if you’re a cash buyer) is essential if you’re looking to purchase a home nowadays. As a buyer, this not only lets you know what you can afford, but also lets the seller know that you’re a qualified buyer, which is especially important in today’s environment if in-person showings are involved.
Talk to your mortgage broker to make sure your pre-approval is current, and if you don’t have a mortgage broker, your agent can share recommendations.
Request a Digital CMA
Whether you’re just starting your home search or preparing to make an offer on a property, a Comparative Market Analysis (CMA) will give you insights into pricing and market activity in your specific area.
@properties’ proprietary Digital CMA takes the traditional CMA (think paper printouts and PDFs) to the next level by providing real-time MLS data in an interactive, digital platform that you can access on the fly. You can also add properties to the report and leave comments for your agent to review.
Ultimately the Digital CMA ensures you always have the most accurate data to make the most informed offer on a property.
Make Your Offer Stand Out
When inventory is low, multiple offer scenarios are more common. If you’re ready to make an offer on a home you love, work with your agent to do everything you can to make your offer stand out, especially if the seller has other offers.
Beyond being pre-approved, there are other ways to make your offer more appealing, such as increasing your earnest money deposit, waiving certain contingencies, or being flexible on terms that may be important to the seller, such as the closing date.
Find more tips on how to navigate multiple offers as a buyer here, and discuss the best strategy with your agent.