Inventories usually have a seasonal trend of rising in the spring and declining in the fall. But today’s market is unpredictable, and inventories in the past few years have fallen and stayed low in the spring and summer.
There are many variables affecting these low inventories, including high mortgage costs, millions of foreclosures and undesirable home prices for owners to want to sell. Your clients may be discouraged to invest in a house, but there are some hidden homes out there to consider.
Homes to keep an eye out for include:
1. FSBOs, or “for sale by owner”
2. Expired listings, because the seller may still want to sell the property
3. Pre-foreclosures, or short sales, that banks push to sell as fast as possible
4. Rentals that investors are willing to sell for a good enough offer
5. Higher-tier homes, which are abundant in today's market
Before trying to invest in one of these homes, make sure to have an experienced buyer’s agent familiar with investments in these hidden homes. Read the full post for more information.
What is your strategy for finding homes during this inventory drought?
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.