You may have more negotiation power when you buy a home today. We have a lot of buyers that put their move on hold as the frequency and intensity of bidding wars over the past two years were just more than they wanted to deal with. That hyper-competitive market has cooled as buyer demand has moderated and housing supply has grown. Locally there are still some neighborhoods with a huge shortage of inventory, but overall buyers do have more options today than they have had in years. Those factors combined mean you may see less competition from other buyers, making it a great time to take advantage of your buying power in this market. With less competition comes more opportunity. There are a few trends that are helping to get our buyers into some really good deals right now.
At the height of the market, more buyers were willing to forego repairs, and many were offering appraisal waivers to stand out in a competing offer situation.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection or appraisal is down. And a recent article from realtor.com points out more sellers are accepting contingencies:
“A year ago, sellers were calling all the shots, and buyers were launching legendary bidding wars, waiving contingencies, and paying for homes in cash. But now, the shoe is on the other foot, and 92% of home sellers are accepting some buyer-friendly terms(frequently related to home inspections, financing, or appraisals). ”realtor.com
While we are not quite in a buyers’ market right now, buyers do have a bit more leverage when it comes time to negotiate with sellers.
Some sellers are listing their homes at prices like it is mid-2021 so we are also seeing homes selling for less than list price or seeing a number of price reductions. This too is great news for buyers. The opportunity to negotiate on price in addition to terms also gives buyers a bit of breathing room. Buyers- leverage your buying power in this market!
Trends come and go so quickly and how easily they are forgotten. Kind of crazy. Before the pandemic, it was common for sellers to cover some of the buyer’s closing costs. Then the market went crazy, and this didn’t happen as much during the peak buyer frenzy. Somehow it feels like sellers are frowning when buyers are structuring deals and requesting a credit for closing costs. This is foolish!
Paying a buyer’s closing costs can often mean more money in a seller’s pocket and it has no reflection on the buyer’s ability to purchase. Today, data suggests this type of negotiating is making a comeback. A realtor.com survey shows 32% of sellers paid some or all of their buyer’s closing costs.
Despite the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back to the table. Buyers- take advantage of your buying power in this market. Work with the right real estate professionals that know how to negotiate on your behalf to get you the best deal possible.