Selling a Home Today? This Dave Ramsey Advice Can't Be Overlooked

Following it could save you a huge hassle.

Real estate inventory has been extremely tight on a national level for the past several years. And as of the end of January, there was only a 2.9-month supply of inventory, according to the National Association of Realtors. It can commonly take a 6-month supply of housing inventory to meet buyer demand and equalize the real estate market.

If you're looking to sell your home, low inventory might give you certain advantages. Limited real estate inventory means you won't face as much competition from other sellers. And that could lead to a higher offer. You may even end up with buyers who enter a bidding war, which can only benefit you financially.

Granted, buyer demand has waned this year due to exorbitant mortgage rates. But even so, the less competition you have as a seller, the more you stand to benefit.

That said, limited housing inventory can present a challenge to sellers, too. And that's why it's important to heed this advice from financial guru Dave Ramsey.

Have a solid plan

In a market with robust housing inventory, you can sometimes get away with selling your home and taking your time to find another one. But that's not the market we're in.

That's why Ramsey says, "Make sure you know where you’ll be living next before you sell. If you’re buying a new home after your current home is sold, there’s no guarantee that the new owner will allow you to stay there until you decide (although you could make that part of the buying agreement)."

Let's say you list your home on April 1 and get a qualified buyer within 30 days (which is still feasible, even with the cost of getting a mortgage loan being higher). You might then be looking at another 60 to 90 days by the time you close on that sale. But that doesn't give you a whole lot of time to first embark on a home search, make an offer, get it accepted, get financing for your new home, and make a plan to move.

That's why in today's market, you should do your share of house hunting before putting your home up for sale. And you should also decide what area you want to move to and research home prices there to make sure you can afford them. It wouldn't even hurt to get pre-approved for a mortgage so you get a sense of what sort of loan you'll be able to take on, and what price range to stick to as you search.

Prepare for a quick sale

At a time when housing inventory is limited, homes tend to sell quickly. That's generally a good thing -- unless it leaves you in a situation where you have to scramble to figure out your next move.

Rather than take that risk, do plenty of legwork and research before putting your home on the market. Given the low inventory, you can't discount the possibility of your home selling within days, and you don't want to get stuck in a jam.