What Does Low Inventory Mean for HomeBuyers?

Housing Inventory is Historically Low Across the Country

These are challenging times for homebuyers! When housing inventory is low and demand is high, you face competition for houses.

Last week, homebuyers I've been working with for several months now made a very strong offer on a house in a popular location in suburban Maryland. The sellers choose another offer after reviewing 14 other offers! Unfortunately, this is an all-too-common occurrence. 

How Does A Homebuyer Prepare for this Market?

• Talk to a lender and learn what options are available for you and your specific financial needs. Can you pay all cash for a property? Do you have limited funds for the downpayment? Are you in a position to buy an as-is property? Answers to these questions start with a full understanding of your finances. Once this is clear, you can learn how to structure your offer.
• Find a house or condominium you really like? See it as soon as possible. Some sellers will accept the first strong offer they receive. Has the seller set s deadline for offers? Find out what the seller needs and try to accommodate as much as possible. For example, if they need a post-occupancy agreement for two months and you have flexibility with your current housing situation, include this option in your offer. 
• Become familiar with locations and neighborhoods of interest. If you are local, drive through communities, stop and chat with people in the area and ask them about the HOA, condominium association , or neighborhood amenities. If you are moving to an area from out of town, use GoogleMaps and pull the little yellow guy down to the street view. It's pretty amazing what you can learn from Master plans, maps, and city permitting offices. 
• Don't panic and buy a house because you think you have no other options. Be patient and persevere! Stick with your plan of action and a good buyer's agent on your side, you will have success.