Finding real estate deals in a low-inventory housing market can be quite an ordeal. In 2021, the housing market had an outstanding year, however, many investors, and prospective homeowners found themselves in cutthroat bidding wars. Beating the competition to obtain a property remains a challenge in Q1 2022, however, the following tips can put you on track to win BIG in this low-inventory market.
Remember, Be Flexible
Be open to putting in the work when searching for the best real estate deals in a low-inventory housing market. As a real estate investor and buyer, this means always being available to view a property, as well as accepting some possible compromises with your requirements.
Rethink the Type of Property You Want to Purchase
Many times, a low-inventory housing market only applies to one type of rental property, like single-family income properties rather than multi-family units. In this instance, if you are thinking of buying a single-family investment property, try taking a look at multi-family complexes instead.
While you’re in the mix of finding a property in a low-inventory housing market, don’t forget one of the best tips for real estate investors: Take your time. Just because inventory is currently low, does not mean you have to buy whatever investment property you can get your hands on. Remember, at the end of the day this is an investment and must be profitable to you, the investor.
Consider Investing in Other Markets
A lot of times, one state can have the hottest, low-inventory real estate markets in the country, while another state can have emerging markets with high inventory and profitable properties. If you are firm on your property requirements during your search in a low-inventory housing market, try looking into new markets. You might find exactly what you are looking for.
Negotiation Skills are Key
As a property buyer in a low-inventory housing market, you must be good at negotiating without going too far. This is especially true when it is a seller’s market. Don’t go overboard with lowballing your offers as this might cost you the property entirely. Instead, do enough research on the market and its properties. Use our investment property calculator to calculate the potential margins that allow you to make the right offer for you and for the seller.
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