Buy A Knoxville Home: Surviving In A Real Estate Market With Low Inventory

The Knoxville real estate market, like many other parts of the country, has a historically low inventory of homes. This is making it hard for many buyers to find homes for Knoxville.

So, what do you do when you’re trying to buy a Knoxville home for sale, but you can’t find the right one in the low inventory?

In this post, we’ll offer some advice for surviving in a real estate market with low inventory.

Be Prepared

In a low inventory market, in order to survive, you must be prepared. Failing to do so will hurt your chances of finding the right home. So, how do you need to be prepared in a low inventory market?

First, you absolutely must get pre-approved. Whether you’re a first-time buyer or a fifth time buyer, this is the absolute first step to buying a home in a low inventory market. It will let you know your price range and let you know how much you can afford. When you submit an offer, it will also show the seller that you’re a prepared, capable buyer.

It’s also important that before entering the market you have an understanding of current market in the location and price range that you’re looking to buy. This can help mentally prepare you for what to expect when you’re out searching for homes.

Hire A Realtor

When you’re looking to buy a Knoxville home, it’s always helpful to hire a realtor. It’s even more important when you’re buying a home in a low inventory market.

A realtor can be an extremely useful asset in assisting you find the right home. Instead of bearing the weight of your home search alone, you’ll have professional assistance. You’ll have someone who is dedicated to helping you find the right home. Realtors can also have the inside track of homes that may be hitting the market, which can get you into a home before any other buyers do.

In addition, a realtor is an added resource for when it comes to making an offer. They can help advise you on what to include in the offer so that it stands out.

Be Ready To Look

When you’re fighting to buy a Knoxville home in a low inventory market, you need to be ready to look at a moment’s notice. Half the battle of finding the right home in a low inventory market is getting to the home first.

When you think about buying a home in a low inventory market, you need to be committed to it. Your weekends will be filled up with last minute showings. You may be sneaking out of your lunch break to quickly look at a house. Or, you may be leaving work a few minute early to look at a home. As hard as this can be, it’s the best way to get a house before another buyer gets to it.

The pain of looking for a home won’t last forever. In a low inventory market, it just takes some commitment in order to find the right home.

Be Ready To Make An Offer

The art of writing an offer is quite a bit different when you’re in a competitive market. You’re no longer able to write a low offer to test the waters and still end up getting the house. When there is the potential of multiple offers coming in, you need to go in strong from the start.

Here are a few key things to include in your offer to help you win the bid:

• Price is everything. Offer a competitive price, often at list price or higher, just keep in mind you don’t want to overbid on a house. It can be a fine line. If you overbid, a home may not appraise and you could experience some buyer’s remorse. Your agent can help advise you on this by pulling homes that have recently sold in the area or that are for sale. Based on that information, they can advise you if your offering price is fair.
• Close date can be important, too. If you’re able to be a bit flexible, this can sometimes be a way too win over sellers. You agent can check with the seller’s agent to see what their timeline is like. Some sellers want to close sooner and some need some time.
• Earnest money can show you’re serious. Earnest money can be an easy way to show a seller you’re serious. If you’re able to put some more skin in the game, it can go a long way. It’ll show a seller that you’re serious about the home.
• Contingencies are another thing that can help you win a seller over. If you write an offer free of crazy contingencies, it can go a long way. You should keep in mind, it is never smart to waive an inspection contingency. You can always promise to do a home inspection quickly.
• Seller paid closing costs are another item that can go a long way. Depending on your situation, you may or may not be able to live without a seller paying your closing costs. If you do ask for a seller to pay closing costs, it can be important to take that into account with the price. In addition, things like asking for a home warranty, appliances, and personal items are all things that can add up as well.

An great offer can go a long way in a competitive market. When you find a great home, it can be important that you’re willing to write an offer quickly, since minutes matter.

Have A Plan B

Finally, when you’re looking for a home in a low inventory market, you probably need to have a Plan B, should you not be able to find a home in time. While this is not an ideal situation, it’s better to have a plan rather than be left scrambling at the last minute when you cannot find a home.

Depending on your living situation, having an alternative plan may be very simple or it may be more difficult. The important part is that you find a place to temporarily live, should you not be able to get into a home. It could be renting a temporary place, waiting to sell your current place, or crashing with a family member. Regardless, be sure you have a plan in mind before you start your home search.

Are you thinking about buying a Knoxville home this year? Please let us know if there is any way that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at by phone at 865-696-1888 or via email at [email protected].