How to Buy and Sell in a Market of Low Inventory (Madison & Co)



It's getting harder to find starter homes for sale. But if you know some tricks of the trade, it’s still possible to find — and buy — the perfect one for you.


Once you’ve taken all the steps to prepare for buying a home, you’re ready to begin the house hunt. But what happens when you’re out scouting neighborhoods — in person and online — and you realize there’s not much to look at? Finding few options, or maybe even nothing for sale in your price range is increasingly common for many homebuyers.


Offer a higher price, within reason.


It’s supply and demand 101: Prices rise when inventory is low and demand is high. Offering a higher price can be tricky when you’re buying a home. You’ll need to make sure you can afford — and get — a bigger mortgage. But you also need to be able to make up the difference in cash if the house appraises below your offer. Most lenders will not approve a mortgage for more than the appraised value. You could also offer more money upfront. This shows the seller you’re serious, and it may make your offer stand out.


Mortgage recasting.

It’s supply and demand 101: Prices rise when inventory is low and demand is high. Offering a higher price can be tricky when you’re buying a home. You’ll need to make sure you can afford — and get — a bigger mortgage. But you also need to be able to make up the difference in cash if the house appraises below your offer. Most lenders will not approve a mortgage for more than the appraised value. You could also offer more money upfront. This shows the seller you’re serious, and it may make your offer stand out.


Rent the house back to the sellers.


It’s supply and demand 101: Prices rise when inventory is low and demand is high. Offering a higher price can be tricky when you’re buying a home. You’ll need to make sure you can afford — and get — a bigger mortgage. But you also need to be able to make up the difference in cash if the house appraises below your offer. Most lenders will not approve a mortgage for more than the appraised value. You could also offer more money upfront. This shows the seller you’re serious, and it may make your offer stand out.


Act quickly, but practice patience.


It’s supply and demand 101: Prices rise when inventory is low and demand is high. Offering a higher price can be tricky when you’re buying a home. You’ll need to make sure you can afford — and get — a bigger mortgage. But you also need to be able to make up the difference in cash if the house appraises below your offer. Most lenders will not approve a mortgage for more than the appraised value. You could also offer more money upfront. This shows the seller you’re serious, and it may make your offer stand out.


Be flexible on closing dates.


Besides being fast on the offer, you might need to close quickly too. If your seller needs a quick closing because of a job relocation or divorce, your offer might have more weight if you can sprint to the closing table. But how can you speed up this process? Shorten your inspection time frame. Ten days is long enough for a home inspection if you’ve got an inspector ready. Also, if you’re preapproved, you may be able to close as quickly as an all-cash buyer. Your mortgage lender will have everything in hand to start underwriting your mortgage.



Approach landlords.


Besides being fast on the offer, you might need to close quickly too. If your seller needs a quick closing because of a job relocation or divorce, your offer might have more weight if you can sprint to the closing table. But how can you speed up this process? Shorten your inspection time frame. Ten days is long enough for a home inspection if you’ve got an inspector ready. Also, if you’re preapproved, you may be able to close as quickly as an all-cash buyer. Your mortgage lender will have everything in hand to start underwriting your mortgage.


Work with a Madison agent and take advantage of Madison Vault, a proprietary buyer and seller matching platform, to find off-market homes.


This platform organizes and optimizes properties not yet publicly listed, active buyers, and other selected pieces of critical time-sensitive information to create a true advantage

in Denver’s highly competitive real estate industry. Madison Vault is a private, internal community collaboration platform providing the opportunity for sellers to get a sale before they go public to the MLS. This technology was created to fill key communication and technology gaps that constrain the real estate industry.

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