While Inventory is Down, Increase Your Competitive Edge
It’s no secret the housing inventory shortage has been plaguing the industry for years, and the trend shows no sign of slowing down any time soon. In fact, Business Insider went as far as calling the ongoing shortage “today’s current housing crisis.” Atlanta has been especially hit hard by the inventory crunch with a 12 percent inventory decline from one year ago, according to CNBC. However, just because inventory is especially tight right now doesn’t mean families, couples and individuals should give up on their aspirations of buying their dream home.
So, how can hopeful borrowers who are getting quickly outbid land their dream home? A few suggestions include securing pre-approval for a mortgage, staying a step head of the competition with platforms like Zillow’s Coming Soon and taking advantage of the opportunity to leverage personal emotional appeal.
Buyers who have secured pre-approval for a mortgage signal to sellers and Realtors that they are serious buyers, assuring Realtors and sellers that they won’t be wasting their time. Additionally, should the seller accept the offer, there is typically a greater chance of a successful close on the home.
While the pre-approval process may seem lengthy, considering the buyer needs to provide financial information including W2 statements, federal tax returns and bank statements, it may offer buyers the competitive edge they need to secure the home of their dreams.
Stay a Step Ahead
In 2014 Zillow announced Coming Soon – a sneak-peek feature that allows interested homebuyers the opportunity to preview homes that are not yet on the market, but are expected to be listed within a month. Buyers and Realtors who find a property they’re interested in on Coming Soon will be able to contact listing agents directly. The platform is designed to help buyers in areas where there is an inventory crunch and sellers who are hoping to sell their home quickly.
“By offering a glimpse into a market’s future housing inventory, home shoppers can rest assured they have the broadest possible view of the local market to find the right home, and sellers can feel confident their home is being marketed as widely as possible,” said Jeremy Wacksman, vice president of marketing and product management at Zillow.
Appeal to Emotions
Using emotion as a viable mode of persuasion stems all the way back to Aristotle’s use of ethos in 350 B.C. A modern-day model from Zillow recommends writing a personal, handwritten letter of emotional appeal to the homeowners of homes that you’re interested in. If there are multiple offers on a property it certainly wouldn’t hurt to let the homeowner know the reasons why their home is of particular interest to you and your family. Perhaps the home evokes memories from your childhood or how the home fits perfectly with your family’s lifestyle and needs.
Securing a dream home doesn’t happen overnight. If you’re becoming frustrated with the lack of inventory, rest assure your dream home is out there and with a bit of work and the right strategic tactics, such as securing pre-mortgage approval and making not only a logical monetary appeal to sellers, but also an emotional appeal, the dream of homeownership is vastly more achievable.