Buying A Home In A Low Inventory Market

If you’ve noticed that there seems to be fewer and fewer houses on the local market, you’re not alone. The US is facing an unprecedented combination of low interest rates on loans and new homebuyers entering the market, while the number of homes being built comes nowhere close to meeting the demands of the market. This results in homes flying off the market almost as soon as they’re listed, making it difficult for buyers to find a home that fits their needs. According to Redfin, the median home price in Whatcom County is now $450,000, a significant increase from years prior. Meanwhile, the median number of days on the market for a new listing has dropped to nine. While this may seem daunting, MJB Real Estate Group has a track record of helping buyers find homes in the competitive Whatcom County market. We’ll help you navigate your real estate journey, guiding you step by step until you’re settled in your dream home.

Get Your Finances In Order

The moment a seller puts their home in the market, the ball is in their court. It’s not unusual for the seller to receive multiple offers within the first week of listing their home, or for the final offer to go tens of thousands of dollars over the initial asking price. When a seller lists their homes, they’re expecting top dollar on their property, and likely won’t entertain a low-ball offer. This means you, the buyer, need to have your finances in top order before you construct an offer.

The first step is to get pre-approved for a loan, which will help you determine how much you can borrow, and how much you can afford. You’ll want to consult with a reputable lender, who will assess your credit score, proof of income, debt to income ratio, and more. If you’re curious about this process, or need recommendations for local lenders, book a free strategy session with MJB Real Estate Group!

After assessing your loan options and finding the best loan for you, your next step is to put together a solid down payment that will make for enticing offer. In competitive markets, it’s standard for buyers to be prepared to put 10-20% down on a house. This also requires you to develop a budget that’s realistic for your finances, and for the local market. Your agent can help you determine what the best price range is for your needs. To help you get started, try using our free mortgage calculator to get an idea of what you can afford.

Compromise

While the seller can be picky with what offer they accept, you need to be willing to compromise. Sometimes that means compromising on the closing date or move-in date, or even reaching a rent-back agreement with the seller, where they rent the property from you for a short period before moving out. Compromise also means being flexible on the house itself and being willing to consider homes that might not necessarily be your first choice.

One recommended tip is to start by looking for homes at the bottom of your budget, so you can bid higher while staying within your range of affordability. Consider what factors are important to you when you’re looking for a home by determining what features are absolute necessities, and what you can be flexible on.  Sure, a recently remodeled kitchen or a three-car garage would be great, but wouldn’t you rather stay within your budget and still get that home office you need? While the home you can afford may not be your dream home, buying a decent home that fits your needs is better than not buying a home at all.

It’s also important to consider the long-term value of buying a house, even if it’s not ideal. If you buy a budget-friendly house that you can afford to remodel or repair into something more ideal, you’re setting yourself up for increased home value equity and the ability to sell and buy a nicer home in the future.

Act Quickly

When looking for a home in the competitive Whatcom County market, it pays to be proactive. You can start by getting connected with the expert local agents at MJB. We have extensive experience serving Bellingham, Lynden, Ferndale and the surrounding areas, and are familiar with the local neighborhoods and market trends. When you buy a home with us, we’ll help you decide where and when to look for listings.

Part of our process is keeping you up to date and informed on the best listings on the market, which means being ready to help you put together an offer the moment a suitable listing hits the market. While the market is tough, MJB is tougher, and determined to help you find your next home. Get started to day by calling one of our agents, or using our free home listing search to find the best homes in the area!