{"id":15439,"date":"2021-05-07T16:46:49","date_gmt":"2021-05-07T22:46:49","guid":{"rendered":"https:\/\/www.richmondamerican.com\/blog\/?p=15439"},"modified":"2025-06-19T10:25:19","modified_gmt":"2025-06-19T16:25:19","slug":"buying-in-a-low-inventory-housing-market","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/buying-in-a-low-inventory-housing-market\/","title":{"rendered":"Contract on Your Dream Home in a Low-inventory Housing Market\u2014Here\u2019s How!"},"content":{"rendered":"\n
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Home shopping can be stressful in the best times, and a low-inventory housing market can make it even harder to land the listing of your dreams. That shouldn\u2019t stop you from making your move! We put together some tips for contracting in a tight market\u2014plus insight into why new construction could be your best choice. <\/p>\n\n\n\n

Work with a\ntop-notch real estate agent.<\/em><\/strong><\/h2>\n\n\n\n

If you want regular\nupdates on available listings and the ability to quickly and efficiently submit\nyour offer, you need a real estate agent who\u2019s experienced in and actively\nsearching your preferred market. Agents are also valuable when it comes to\nmaking an offer shine and appealing to a specific seller, whether with a quick\nclosing timeline or a perceptive proposal.<\/p>\n\n\n\n

Come financially prepared. <\/em><\/strong><\/h2>\n\n\n\n

Listings, prices and interest rates are anything but predictable, but being financially prepared to buy a home can create buying opportunities you might have missed otherwise. Pre-qualifying for a mortgage is a great example; not only does it indicate to sellers that you\u2019re a serious prospect, it may also get you through the door of sought-after listings where sellers only allow showings from pre-qualified buyers to minimize traffic..<\/p>\n\n\n\n

What\u2019s the difference between pre-qualifying for a loan and getting pre-approved? Pre-qualification may require less documentation and (in some cases) no credit check, potentially resulting in in a less-accurate projection regarding your ability to qualify or the loan amount you may qualify for. Pre-approval usually requires at least some documentation and a credit check to estimate the amount you may be able to borrow. It\u2019s a significant step but often a simple process; many lenders allow you to submit your information online, including items such as bank statements, pay stubs and your social security number.<\/p>\n\n\n\n

Find out more about mortgages, loan types and pre-approval in our free guide!<\/a><\/p>\n\n\n\n

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\"Mortgage<\/a>\n <\/div>\n
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Ready to finance the home of your dreams?<\/h4>\n

Our free guide will give you an overview of the loan process, plus tools to keep you organized through closing day.<\/p>\n

Get it now<\/a><\/p>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n\n\n\n\n

NOTE<\/em><\/strong>: Final loan\napproval is based on factors beyond your personal creditworthiness, such as the\ntype and condition of the property you\u2019re buying, so remember that pre-qualification\nand pre-approval do not guarantee<\/strong> that you\u2019ll\nget the loan<\/strong> or the loan amount that\u2019s estimated.<\/em><\/p>\n\n\n\n

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An insufficient supply of resale properties has catalyzed the comeback of bidding wars, and competition for homes is fierce. Gone are the days when you could tour a resale home, take a week to think about it and make an offer that\u2019s thousands below the asking price. In areas where bidding wars have become the norm, you\u2019re likely better off submitting your best offer right away, or you risk being rejected outright. You might also want to consider including a handwritten letter with your offer\u2014it\u2019s not failproof, but adding a personal touch may be worth a shot. Appeal to the seller\u2019s emotions and explain why you want to buy their home\u2014maybe you lived nearby as a child or think it\u2019s the perfect place to raise your kids. Many sellers are attached to their homes and want to know they\u2019ll be in good hands, even after they leave. Whatever it is that attracted you to the listing, let them know; expressing your enthusiasm for a residence could give you an edge with the sellers. <\/p>\n\n\n\n

Be flexible on closing dates.<\/em><\/strong><\/h2>\n\n\n\n

In a low-inventory market, you may need to be prepared\nto close as quickly as you make an offer. Some sellers may want to move\nimmediately, and if you can help them close faster, your bid is likely to stand\nout from the crowd. How can you speed up the closing process? Try to have an\ninspector already selected so you can shorten your inspection time frame, and\nmake sure you\u2019re pre-qualified for a loan (or better yet, pre-approved). <\/p>\n\n\n\n

Discover the advantages of new construction.<\/em><\/strong><\/h2>\n\n\n\n

Weary of wading through listings, only to have them disappear hours later? If you have a flexible move-in timeline, consider new construction! Find a homebuilder you like with tips from this article<\/a>, and they\u2019ll help you pick your favorite floor plan, choose your homesite and take your new property from empty frame to full-on dream home. <\/p>\n\n\n\n

\u25cf<\/strong> An established timeline<\/strong><\/h4>\n\n\n\n

Many builders will give you an estimated\n“delivery date,” which is a projection of when you\u2019ll close on your home.\nThis typically ranges from six to nine months and is subject to change with\nweather conditions and other factors, but the wait is worth getting what you\nwant, especially when the home you want is overpriced (or doesn\u2019t exist) on the\nresale market. <\/p>\n\n\n\n

\u25cf <\/strong>Sought-after features<\/strong><\/h4>\n\n\n\n

Homebuilders want their products to be competitive, and that frequently means a focus on in-demand features. Unlike a resale home, everything in a new construction home is brand new, so expensive items like your HVAC system, plumbing, electrical, and other maintenance items are just beginning their useful life and less likely to need costly repairs. Resale homes can be poorly maintained, leading to hidden expenses and robbing you of peace of mind. <\/p>\n\n\n\n

\u25cf <\/strong>Location, location<\/strong><\/h4>\n\n\n\n

A low-inventory market might convince you that you need to sacrifice a desirable location in order to snag a new home, but that\u2019s probably a big mistake. Location is one thing you can\u2019t change about a property, and factors like a long commute, a lack of nearby schools and no close amenities could quickly dim your enthusiasm for your new home. New construction homebuilders are well-known for selecting prime locations for their communities, which are often in close proximity to employment hubs, popular retail and dining options and beautiful natural surroundings. <\/p>\n\n\n\n

Overview of\nnew-build benefits: <\/strong><\/h4>\n\n\n\n