If you’re contemplating buying or selling property and have heard the term “low inventory,” you may be wondering exactly what that means to you.
Inventory refers to the number of listings currently for sale. There are several factors that contribute to low inventory. Seasonal influences are one. Generally the winter months see a lower number of homes listed. Other factors include: the economy, consumer confidence, interest rates, and employment rates.
Buying a home when inventory is low can be more difficult. You’ll have fewer options in your price point with more people going after the same property. When making an offer, you should be prepared to act quickly and make your offer more appealing by considering the price and conditions presented, especially in a multiple offer situation. Though offering higher than asking is not always the case, you need to be prepared for the different scenarios that could arise. Most importantly, knowing the market and the neighbourhood, along with research and comparative analysis, will translate into you making an offer that you are comfortable with. Never get into a situation where you are paying more than you feel it’s worth or that you want to pay.
Listing your home in a low inventory climate means that you need to be prepared for action! Show your home in its best light by using professional photography and video, proper staging, and tactical marketing that reaches the correct audience to create the most impact. Also make sure that your home is in good shape, with all small repairs and fixes completed. Setting the asking price at the right amount to ensure that a high number of potential buyers will view the property within its first week on the market. Most activity for a new listing happens within the first two weeks. So be ready to accommodate all showings, even with short notice.
The more showings you get – the greater your chance are for an offer…or two!