Tips On Buying In A Tight Market

If you are considering selling your home you have to read this. In October 2010 there was a 12 month supply of inventory in the Indianapolis area, including the six surrounding counties to Indianapolis. October 2011 there was a 8.5 months supply of inventory, and October 2012 a 6.1 month supply of inventory.  What does that mean for you if you are considering selling your home? It means that there is less competition and it means that buyers could start a bidding war to get your home. Interest rates remain extremely low, not much inventory for buyers to choose from but still lots of buyers...can you say, "PERFECT". 

If you are a buyer right now there are a few things you should know to increase your chances of getting your dream home instead of losing it to another buyer. Don't be that buyer who is happy one minute because they found their dream home, and sad the next because they lost it.

  1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and make your offer more desirable to the seller.
  2. Stay in close touch with your real estate sales associate to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market. 
  3. Scout out new listings yourself. Search, have a CENTURY 21 Scheetz REALTOR activate your telephone so you can search any home for sale in the market and hear a detailed tour of that home from your phone, and create an account online to have homes come to you as soon as they are available; be the first to know. 
  4. Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won’t be unsure when you have the chance to make an offer.
  5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t try to go too low to get a deal. In a tight market, you’ll lose out.
  6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to our lender about getting a bridge loan to cover both mortgages for a short period.
  7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy anything. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.