Dealing with Decreasing Inventory for First-Time and Low-Income Buyers
The housing market has shown an incline in the number of homes coming into the market for 2014, but they are leaving out a couple demographics of buyers. According to recent reports, the inventory for homes priced in the middle and top third of home values is steadily increasing. While these numbers are great for those looking for their second home, first-time and low-income buyers are starting to feel left out. If you want to see what your options are, feel free to contact a vLoan advisor today or get a free rate quote online.
Along with financial constraints, first-time and low-income buyers are also dealing with a lack of options. So, what does this mean for our beloved, first-time buyers and Millennials? It looks like, that although buying a home can already be a stressful endeavor, depending on what area you live in and your financial situation, you may also have to do a little more digging while remaining vigilant and patient. Vigilance will have to take the front seat as many potential buyers will need to think outside the box and go after homes that aren’t listed for sale. While digging, patience will also have to come along for the ride as you take the time to find the right home at the right price.
How do you navigate the road less traveled of looking for homes that aren’t included in the listed inventory? Here at Union Home Mortgage, we’ve compiled a few tips to help keep your options open.
- Check rental listings - We know you’re done with renting, but there are some landlords who are renting because they were unable to sell after the housing bubble burst. Now that the housing market is starting to balance out, these landlords may just need one interested buyer to reconsider. Besides, what’s the worst that can happen? All they can do is say “no.” The best approach is to go view the house, think it over, discuss things with your Realtor, and then make the call and see if the property owner is interested in unloading this asset.
- Research “expired” and “withdrawn” listings - Listen, the housing market and many homeowners took a big financial hit just six years ago. Many homeowners put their house on the market when there was a huge inventory of options. Some of them couldn’t take the financial burden of offering their homes at a competitive price and removed the listing. Chances are these homeowners aren’t aware just how much the market has picked up and how much they could get for their house now. If you find an expired or withdrawn listing you like, take the time to run the idea by your Realtor and have them reach out to express your interest in the property. For all you know, this homeowner could be thrilled to receive this news and more than ready to negotiate.
- Overpriced, stale listings could be your best friends - We get it, many homeowners have invested a lot of time and sweat into the property they’re trying to sell and want a fair price. However, it’s interesting to find that a major complaint amongst Realtors is that sellers can be unrealistic about their home’s financial value. This is where our potential buyers come into play. If you find a home that’s listed out of your budget but has been sitting on the market for a long time, it may be time to swoop in with an offer you’re comfortable with. Many sellers can attest to selling their home at a lower price than what they originally hoped for. If you do take this approach, it may be best to come in with a solid offer so you don’t offend anyone. Just make sure you give your Realtor some wiggle room in the price so they can effectively negotiate with the seller.
We understand both sides of the coin – we want to help our sellers get the most out of their home, while also helping new buyers get into the right place. If you’re thinking about buying or selling, we are here to help. Please contact a member of our vLoan today and take your first step towards buying, selling, or refinancing.