Finding Your Home in a Low Inventory Market

The housing market has certainly had its share of ups and downs lately. From crash to recovery, the market is starting to make a comeback, but due to underwater mortgages and refinancing, there just aren’t as many homes available on the market today. But you don’t need to be discouraged.

Because of low inventory, this is what’s known as a seller’s market. That is, there just aren’t as many houses on the market to meet the demand of the buyers. This means that the sellers control the market, and this tends to increase prices and competition for homes. Due to mortgage rates being at record lows a few years ago, many homeowners are unwilling to list their homes. They don’t want to lose their good interest rates, especially because interest rates have started to climb again.

I know, this is starting to sound like you might never be able to find your dream home, but don’t worry. Idaho has plenty of real estate to offer, and Idaho offers an unmatched lifestyle with a perfect fusion of urban life and outdoor recreational activities. Boise is a great place to live and play, and if you follow these tips, you might just buy your dream home after all.

1. Don’t Discredit Expired or Withdrawn Listings

This is where having a really good real estate agent is worthwhile. They won’t just check current listings. Current listings could be overpriced, or lead to bidding wars that benefit the seller, but not the buyer. You want to buy your dream home, but you don’t want to end up underwater with your mortgage.

Check out expired and withdrawn listings. Just because the listings aren’t active anymore doesn’t mean the homeowner isn’t still interested in selling. Maybe the home was just overpriced, and they never got an offer, or an offer they were happy with. Your agent can scour the listings for these inactive homes, and reach out to the homeowner to see if they are still interested in selling. Make a serious offer, and the homeowner just might consider selling.

2. Look for Homes Investors Don’t Want

When investors are looking for real estate, they don’t want to put in much work. You’ll have a better chance buying a home that investors don’t want because they won’t artificially drive the price up in a bidding war. You might have to put in a little more work, but you could also end up with the home of your dreams at a good price.

Plus, there are some areas where investors can’t, or won’t buy property. Look at gated communities, and other places where renting isn’t allowed, or is frowned upon. Investors won’t be able to buy homes in those areas, which means you won’t have to compete with them.

3. Overpriced Listings Might be the Way to Go

While you don’t want to be unrealistic about what you can afford, sometimes looking at overpriced listings can give you quite the advantage. It’s true that one of the biggest complaints that real estate agents have is a buyer looking beyond their price range, but sometimes you can get a better deal on an overpriced home.

Around six weeks, home listings start to fade away. If they haven’t drawn much interest, or are simply listed for too much, potential buyers stop showing up. Maybe the seller isn’t keeping the house as show ready as they used to. Curb appeal can be really important when selling a house, and if they start neglecting the lawn, and keep a higher price, potential buyers will simply stop coming.

You can use this to your advantage, and go in with a lower offer before the seller has a chance to change the list price. If you can beat the price drop, you’ll avoid competition, because other buyers won’t take notice of a lower list price. Play your cards right, and you could walk away with your dream home without a bidding war.

Don’t Let Low Inventory Scare You

With the right real estate agent, and the right strategy, you’ll be able to find your perfect home in any market. Keep an open mind, and stay positive. Work with your agent, and trust their advice. They’ve been working in this market for a long time, and they know how to play the game. Keep an eye out for the house that catches your eye, follow these tips, and before you know it, you’ll be living the dream in Idaho.

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