Buyers who are preparing to enter the residential real estate market this year are expected to find themselves faced with low inventories and stiff competition from other buyers. In fact, according to industry experts, the seller's market conditions that existed in 2017 will likely continue well into the coming year as inventories remain low and more prospective buyers begin their home search. If you are currently looking for a home to purchase or plan to do so in the near future, widening the net can be an effective way to increase the number of homes you have to choose from and these three tips can help.
Consider buying a fixer-upper
With most prospective home buyers intent on purchasing a move-in ready home, buyers who are willing to consider homes that need some level of repairs or renovations may find themselves with a much wider array of choices. Foreclosures and distressed homes are two types of fixer-uppers that buyers may want to consider. In addition to foreclosures and distressed homes that are already being marketed for sale, local lenders and real estate firms in your area often know of additional homes that will be entering the distressed homes market category in the coming months.
Before committing to the purchase of any fixer-upper home, it is important that buyers work with their lender to determine if they can obtain a favorable mortgage for this type of home purchase.
Contact local residential investors
Another way to find potentially available home listings outside the traditional market is to contact local residential real estate investors who own several single family residences and see if they are planning to sell any of their rental homes. Since these investors often sell off some of their inventory to make room for other rental homes that will better fit their business plan, they may have one or more homes that will be available in the coming months.
When considering the purchase of a home from an investor, prospective buyers will want to carefully consider the location of the home and property value trends in the area to determine if the home is likely to increase in value. Homes that are located in a predominately rental neighborhood, or those in an area that is declining in value may not be a wise investment.
Connect with an experienced local agent
Real estate agents who have years of experience in the local market can be excellent sources of information about homes that are being prepped for market but not yet listed. This information can help buyers be ready to view and make an offer very quickly once the listing becomes active, potentially beating out some of the competition and increasing their chances of a successful home purchase in a seller's market.