3 Tips For Buying A House During A Shortage

When the housing market is tight, you’ve got to know what moves to make—and when—to land the house you want. Let’s go over some things you can do to make yourself (the buyer) more appealing in the eyes of the seller, as well as some options to consider when there’s a shortage of homes in the area you want to live.

Get pre-approved.
First step is to get pre-approved. (Do this even before you start browsing online for your dream home.) During a housing shortage, being able to prove to the seller you are a serious buyer makes all the difference. That’s why you’ll want to get a pre-approval letter from your mortgage loan officer. Unlike a pre-qualification letter, which provides an estimate of what you could borrow, a pre-approval letter shows exactly what you can borrow under a specific mortgage program. This letter tells the seller you have what it takes to purchase their house, adding weight to your offer, and making the seller more likely to pick you.

Be ready to make an offer.
If you view a home and decide you want to buy it, be prepared to make that offer right away. With multiple buyers competing for the same house, you’ll miss out if you don’t move quickly. To that end, it’s important you know exactly what you want in a house, and what you’ll settle for as well, before going in. If you are clear with what you want, you’ll spot it right away when you see it. 

Use a real estate agent.
Often real estate agents know of homes going up for sale before they are posted online. Also, in tighter markets, homes are often sold before they are even listed. Some sellers never post their home publicly, opting instead for something called a pocket listing, which is an off-market listing, or a property marketed to potential buyers through private channels rather than on the multiple listing service (MLS). Real estate agents have the inside scoop and can be a great ally in helping you secure a home in the middle of a shortage. 

If you’re ready to buy a home, your first step is to get pre-approved. At Centreville Bank, our experienced team of loan officers can get you pre-approved quickly and ready to shop. 

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