January 26, 2024
Creative Ways to Find a Home Within Your Budget When Inventory is Low
Creative Ways to Find a Home Within Your Budget When Inventory is Low
Even when markets are tight, there are ways to find the right home for you and your family. It starts with resetting your expectations.
The housing market has been red-hot throughout the pandemic at a time when supply shortages have led to delayed new construction and current homeowners have been reluctant to take a chance by giving up their existing spaces. Now, as interest rates tick upward, homeowners who locked in lower rates may be even more unwilling to put their homes on the market. Thus, we’re seeing exceptionally low home inventory levels, creating equally unprecedented challenges for buyers.
The good news is that there are ways to find homes for sale, even in today’s low inventory markets. In order to do so, you’ll have to stay flexible, open-minded and communicative so that you can seize opportunities when they present themselves.
When it’s time to start your home search, you may have a list of requirements that you’re locked in on. You may, in fact, have spent years planning your home search with specific fixtures, finishes and features in mind. You may have to think through some of the items you’re willing to compromise on and discuss possible changes with your real estate professional.
Here are some of the ways you may want to adjust your expectations so that you can improve your chances of success:
If you think you need a suburban neighborhood, you may find that you like the large outdoor spaces and friendly neighborhood feel in a more rural area with a small town center. If you’re looking for the walkability of a downtown market, you may be just as happy with an exurban neighborhood built around a multi-use blended residential and commercial development.
You may have started out looking for a home in a particular neighborhood or even on a specific street. In order to give yourself more options, you may need to think bigger and expand your search beyond a narrowly focused market.
If you’ve been focusing on a sprawling single-family home, you may find just as much square footage and less upkeep and maintenance in a townhome or condominium. If you’ve been thinking about the convenience of a condominium, you may find even more to love in a multi-unit duplex or triplex. Determine whether there’s a different residential category that would suit your needs and give you more to choose from.
Once you’ve begun to expand your search parameters for the home itself, it’s time to start thinking about the specifics on your wishlist. Did you think you couldn’t live without a fireplace? You may have to. Think you must have an attached garage? That may not be available. Your first step is to look at major structural elements and determine what you need and what you’re willing to forego.
Next, look at smaller features that you thought you required. Maybe you can add those high-end countertops after you’ve moved in. Maybe you can do without a walk-in closet in the primary suite. Be willing to give a little to get a lot and you’ll expand the scope of your search even more.
Many buyers are scared away from fixer-uppers because they’re not very handy and don’t feel that they have the ability to do their own repairs and updates. In reality, however, there are many home improvements that you can do on your own with just minimal instruction. These include:
In addition, it’s important to remember that you don’t have to complete all of your updates up front. If you have several changes to make, you may want to make them gradually over a period of months or years as you have the time and money. Alternatively, talk to your lender and find out if you can have the cost of updates wrapped into your home loan.
While you may be in a hurry to begin your new life in your new space, consider whether you can trade an extended timeline for the right home. Be open to the possibility of allowing a seller to rent back their place from you for a couple of months until they are able to find the right home as well. Talk to your real estate agent about the possibility of this option.
No one knows the local market like your real estate agent or broker. They have insight derived from the conversations they have every day with other agents in the area and with past and potential clients. They may be able to identify listings that haven’t yet been put on the MLS or they may be able to put out feelers to their professional network and to homeowners who are part of their referral network. Ask them to be on the lookout for pre-market listings, especially in the neighborhoods that you’re most interested in.
One of the most important factors to consider when looking for a home in a tight market is the ability to move quickly when the right home does appear. It starts with a loan pre-approval and a willingness to stay in communication with your real estate agent or broker so that you can make and respond to offers quickly.
Ready to shift your home search into high gear? Newzip connects you with the real estate professionals you need to move forward. Even in a low inventory market, you’ll have the advice and expertise on your team that can make all the difference. Our satisfaction guarantee and cash back at closing make Newzip the right choice for your real estate purchase.
