Tips On Buying A Home When Inventory Is Low In Austin, TX
Throughout the U.S., real estate markets are experiencing low inventory levels. The market in Austin, Texas, is no exception, and bidding wars are currently par for the course. Buying a home under these circumstances can be challenging, but it’s doable. Before checking out homes for sale in Austin, keep these tips in mind:
- Set a Realistic Budget – In low-inventory situations, it’s especially crucial to set a realistic budget. Otherwise, you’ll waste precious time looking at homes that are beyond your means. The ideal home will meet all of your needs and most of your wants; in other words, compromise is key. By keeping an open mind and being flexible about nice-to-have features, you’ll find it easier to snag a new home even in a white-hot seller’s market.
- Be Financially Ready – When competition for homes is high, it’s critical to be ready to pounce when you find one you like. Being financially prepared is a must, and it starts with having a down payment ready to go. Get all of the documentation you will need for a loan in order, including your income tax returns, bank statements, and paystubs. Connect with a mortgage lender and obtain a preapproval. Better still, have the preapproval sent through underwriting so that you can close as quickly as possible when the time comes.
- Avoid Homes Near the Top of Your Budget – Leave yourself some wiggle room by steering clear of homes for sale that are near the top of your budget. When home inventory levels are tight, homes often sell for at or above list price, so you could end up being bid out of contention. If you have been preapproved for a $400,000 loan, only look at homes that are listed for $385,000 or less to avoid potential headaches – and disappointment.
- Put Your Best Offer Forward – If very few homes are listed for sale when you’re looking, you’ll probably face competition from other buyers for the same place. Therefore, it’s extremely important to make a strong offer when the time comes. Hire a competent and experienced local real estate agent to help you explore homes for sale in Austin. Their insider knowledge of the local real estate market will give you an important edge during negotiations, increasing the odds of making an offer that gets accepted the first time.
- Be Ready to Get Going – Finally, average contract lengths during low inventory periods tend to be shorter than usual, so you should be prepared to pack and move quickly after buying a new place. Clear as many things out of the house as you can before listing it for sale, and have your preapproval run through underwriting so you can close quickly on the new place. Things will be hectic for a minute, but it will all be worth it when you’re settled into your new home.
Buying a home when inventory levels are low is stressful and challenging. However, by keeping the tips above in mind, you’ll get through the process before you know it.