If you think you can be a casual homebuyer this season, you'd be wrong! While spring historically has more inventory than other seasons, there are supply shortages in many of our nation's cities. Granted, there are some exceptions to this idea including in some parts of Durham and the Greater Triangle, you'll want to be prepared if you're a serious buyer. This is important for a first-time home buyer because it impacts your ability to negotiate your best offer. When the market has low inventory, this gives the seller the upper hand.

Here are some tips to help:

1. Have a good real estate agent. I'm not just saying this because I'm a real estate agent. Due to the volatility of the market, the shortages have made it more difficult for first time home buyers to efficiently navigate the market. Having a wise professional guide you can save time and help you land the home you want. Trulia's body of research shows that the number of available starter homes has been shrinking over time. The term starter home refers to houses that are smaller, and also less expensive that are more amenable to a first time home buyer's budget. Keeping in mind that paying your agent's commission is typically the seller's responsibility, you really don't have anything to lose by having a good agent represent your interests! 

2. Get pre-approved. Many confuse pre-qualification and pre-approval but there are some key differences. A lender can pre-qualify you for a mortgage without officially pulling your credit and impacting your credit score. Instead, they can ask you a range of questions regarding your income, assets, and debts and provide you only with an *idea* of the size of mortgage for which you qualify. The benefit of getting pre-qualified above not doing anything at all is that you do get a range of what you qualify for, so your home searching and viewing isn't completely futile. 

Pre-approval, on the other hand, requires you to complete a full mortgage application and many times requires you to pay an application fee. The lender then performs an extensive credit and background check. With pre-approval, the lender provides a conditional commitment in writing for an exact loan amount that empowers you to look at houses at or below this price point. You gain an advantage with the potential seller as they will know you are serious about obtaining an actual mortgage and have a lender to back you. You have the power to put in an offer immediately after viewing a property because you know it will be financed by a lender. In this market, time is of the essence!

3. Be flexible.  I know that you want your first home to fulfill all the criteria you have for your dream house but the likelihood of that happening is quite small. For most people, its hard to find something that you can afford that is also the most incredible piece of property you have ever seen. A good real estate agent will guide you through a "wants and needs" discussion where you as the home buyer narrow down what you really need in a home and differentiate it from the qualities you would like to have. Being open will save you less heartburn and stress during the search and also engender an attitude of gratefulness once the search is over.