Navigating a Seller’s Market: 7 Tips for Home Buyers
Since real estate, like other industries, relies so heavily on the laws of supply and demand, one of the biggest challenges home buyers face when searching for a new home is navigating a low inventory market. When the number of homes for sale is low and the competition is high, landing your dream place at the right price can feel like winning the lottery. According to a May 2025 article from WIFR, only 150 homes remain in Rockford’s housing market, a drop of more than 22% from last year.1
However, you can increase your chances of success with the right approach and a strategic mindset. Here are seven tips for getting into your dream home despite a low inventory market.
1. Get pre-approved – A pre-approval by a reputable lender (even better if they are local) is crucial when you are ready to take the home-buying process to the next level. It requires a formal application with proof of your financial history and stability. Real estate agents and sellers will want to see the pre-approval letter before showing and accepting an offer on a property.
2. Find a trusted real estate agent – The MLS isn’t the be-all, end-all of housing availability, and experienced agents with extensive contacts may have information on “coming soon” listings or off-market listings, which gives you a significant edge. Start by gathering referrals from trusted sources (family, friends, your mortgage loan officer, financial advisor, etc.). Research agents online, talk with several potential agents, and then determine who best fits your needs. As with any service professional, you need to feel good about the person you’ll be working with.
3. Broaden your home search – While you may have your heart set on a specific neighborhood or area of town, unless you are prepared to wait for homes to become available, your best bet is to widen your search. Create a list of your “must-haves” and then talk with your agent about other locations and your non-negotiables.
4. Make a strong first offer – Tight housing markets aren’t favorable for haggling. The strategy of lowballing the price and leaving room to negotiate upward or asking for a lot of concessions for cosmetic flaws like paint and flooring, is a risky move in a seller’s market. This is why an experienced agent is such an ally. They can help you tailor an offer that will get the seller’s interest and bring them to the table, while other potential buyers waste time lobbying offers that are nonstarters.
5. Be flexible – Sometimes, what can set you apart is being flexible. Be able to close faster if that is what the seller is looking for, or close on a later date if that is what it takes. The home seller may view your flexibility as something that will put your offer over the top. Talk with your agent, but in some cases, you may be able to rent the home back to the sellers for a fixed period to help them through the moving process.
6. Consider a fixer-upper – This type of home can be more affordable in high-demand areas. If you are only looking for move-in-ready homes, you are limiting your options, especially if you are looking to move into a specific town or subdivision. Also, don’t forget that with a fixer-upper, you have the option to make it your own by customizing it as you wish.
7. Build your own home – This option may take longer, but it will give you the advantage of being able to customize a home to your specific needs. Another positive of building is that at this time, the margin between buying and building a home is almost identical. This means for the first time in a long time, you are getting about the same home “value” whether you are buying or building.
Home buying can be a daunting process, especially in a competitive market. However, with these tips, you’ll be ready to handle shopping for your dream home in a low-inventory market.
Source:
[1] WIFR.com, “Rockford Housing Inventory Drops to Record Low,” May 1, 2025
www.wifr.com/2025/05/01/rockford-housing-inventory-drops-record-low
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