What techniques can you use to manage low inventory or high demand?

If you are a first-time home buyer, you may face some challenges in finding your dream home in a competitive market. Low inventory or high demand can make it harder to find a suitable property, negotiate a fair price, and close the deal. However, there are some techniques you can use to manage these situations and increase your chances of success. Here are some tips to help you navigate the market and achieve your homeownership goals.

1 Know your priorities

Before you start your home search, you need to have a clear idea of what you want and what you can afford. Make a list of your must-haves, nice-to-haves, and deal-breakers. This will help you narrow down your options and focus on the properties that meet your criteria. You also need to get pre-approved for a mortgage, so you know your budget and can show sellers that you are a serious and qualified buyer.

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2 Be flexible and creative

In a low inventory or high demand market, you may have to compromise on some aspects of your ideal home. For example, you may have to consider different locations, styles, sizes, or features than you initially envisioned. You may also have to be flexible with your timeline, as you may have to act quickly or wait longer depending on the availability and competition. Additionally, you may have to be creative with your offer, such as adding contingencies, incentives, or personal touches to make it stand out from the rest.

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Rhonda McGill

Sr. Director, Host of COMPLY Podcasts, Roundtables, Passionate Leader & Community Builder
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Remember, you can always make improvements. Too often homebuyers look to check off all of the boxes. It is so important to not sweat the small stuff! Cosmetic upgrades can be done over time. Things like cabinets and flooring and room colors, should not come between you and your dream of homeownership. Anticipate that DIY projects will become a part of your life for years to come! You will learn a lot through trial and error, and for the eager weekend warrior, these challenges can be lots of fun and a great opportunity to bond with friends and family!

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3 Work with a professional

One of the best ways to manage low inventory or high demand is to work with a professional real estate agent who has experience and expertise in the market. A good agent can help you find the right property, advise you on the best strategy, negotiate on your behalf, and guide you through the process. They can also access exclusive listings, network with other agents, and alert you to new opportunities as soon as they arise.

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4 Be prepared and decisive

When you find a property that matches your priorities, you need to be prepared and decisive to secure it. This means having all your documents, finances, and inspections ready, and being able to make an offer as soon as possible. You also need to be decisive and confident in your decision, as you may not have much time or room to negotiate or change your mind. If you hesitate or delay, you may lose the opportunity to another buyer.

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Tammie Jungling

VP of Mortgage Lending @ Certainty Home Lending | NMLSR# 455110 l VA Lending Specialists l Renovation Lending l Reverse Certified l First Time Homebuyers Advocate | Investment Lending
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Make your offer stronger by getting pre-approved, especially in a competitive market with multiple offers coming in with cash deals competing against people who need financing. If you're financing you want show you have strong approval ready to go which is just as good as cash. Don't wait until your ready to make an offer. Any good lender is going to need your financial documents to be able to give you a strong pre-approval. If they don't ask to see the documents or you don't allow them to electronically retrieve you information then all you are getting is a pre-qualification.

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5 Keep your emotions in check

Buying your first home can be an exciting and emotional experience, but you also need to keep your emotions in check when dealing with low inventory or high demand. You may face some disappointments, frustrations, or stress along the way, but you should not let them affect your judgment or behavior. You should also avoid getting attached to a property before you have a signed contract, as there may be unforeseen issues or complications. Instead, you should stay calm, positive, and realistic throughout the process.

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6 Explore alternative options

If you are struggling to find or buy a home in a low inventory or high demand market, you may want to explore some alternative options that may suit your needs and preferences. For example, you may want to consider renting, building, renovating, or co-buying a home instead of buying an existing one. You may also want to expand your search to different areas, markets, or platforms that may offer more availability or affordability. These options may require more research, planning, or resources, but they may also provide more opportunities and benefits for you.

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Tammie Jungling

VP of Mortgage Lending @ Certainty Home Lending | NMLSR# 455110 l VA Lending Specialists l Renovation Lending l Reverse Certified l First Time Homebuyers Advocate | Investment Lending
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Renovation is a great option when you've found your perfect neighborhood but the available inventory isn't quite what you want. With a Renovation loan you can make that home in your desired neighborhood your dream home now instead of waiting for one to become available or settling for another location.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Mike Goswami

Real Estate Agent at The Premiere Team Rea Estate.
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As a real estate agent I’ve learned on thing over the years, no matter what is your dream home, to make it a reality I make sure the buyers have the down payment secured first. Secondly to keep in mind exactly how big snd location they are wanting. Once this is decided then I go snd help them find their home.

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What techniques can you use to manage low inventory or high demand?

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1 Know your priorities

2 Be flexible and creative

3 Work with a professional

4 Be prepared and decisive

5 Keep your emotions in check

6 Explore alternative options

7 Here’s what else to consider

Working with First-Time Home Buyers

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