As we make our way through today’s seller’s market with low inventory, we need to be prepared. There are many associations that has done research on this topic, and they have shared their insight into what you (buyers) want and what we need to know to be able to help you. What follows are some tips for helping you succeed in a low-inventory market.
Dealing with low inventory. A low-inventory market definitely adds challenges for buyers, who already say the most difficult part of the buying process is finding your dream home. That’s why here at Top Property Shop we do a “buyer consolation”. This usually takes about 45 minutes in our office, and we narrow done exactly what you want, and your expectations. We have found that this time is well spent and reduces your stress.
Managing multiple-offer situations. In a market with such tight inventory, multiple offers on the same property are on the rise. It’s very important to use to represent your best interests in these scenarios.
- The pros and cons of various negotiating strategies. For example, a low initial offer may sound good to you, but the seller may not respond to it and take another offer, and at that point we lost our negotiating power. Our advise is, if this is your dream home , then make your best offer first.
- Other terms can also make a deal more palatable, such as willingness to be flexible on seller’s timetable, doubling the earnest money deposit amount to show your a serious buyer, or agreeing to pay ALL extras, such as HOA transfer fees or closing costs.
- Escalation clauses have begun to reappear in offers. These clauses, which have some risks, state your willingness to pay a certain amount above a verifiable offer the seller has received, up to a certain limit.
Even with strong negotiation and competitive offers, you still may be outbid and can end up disappointed and frustrated that your offer was not accepted. Buying a home under ordinary circumstances is changing, and the more so in a low-inventory market, that’s why it’s very important to keep our communication with you prompt, open and ongoing.