Are you considering buying a home? Well then here’s some good news: we are looking at a less intense sellers’ market than last year. Soon, you’ll be saying goodbye to the days of paying significantly more than the asking price, or believing you need to waive contingencies. Today, you have less competition to deal with and more power negotiating than before, due to many reasons, like intensity of buyer demand, and the fact that bidding wars are cooling off a bit this year. So, if either of these two things were a big factor that stopped you from buying, check out these two trends that may be your ticket to your new home.
1. Return of Contingencies
In the last few years, more and more buyers were willing to skip over important parts of the homebuying process, to increase their odds of winning a bidding war, like appraisals or inspections., recently however, fewer buyers have given up these kind of steps when looking for a home. In fact, according to the most recent data here from the National Association of Realtors (NAR), less buyers are willing to forego the home inspection and appraisal portion of the home buying process. Realtor.com also did a study, which revealed that 95% of sellers reported that a buyer requested a home inspection.
2. Sellers are More Willing to Help with Closing Costs
Closing costs typically range from 2% of the purchase price to 5%. It used to be a common sight for sellers to sweeten the deal and cover some of the buyers closing costs. Since the pandemic, however, this has not happened as frequently as it used to. However, it looks like changes are coming. According to a recent article from realtor.com, 32% of sellers paid for some or all of their buyers closing costs. this is another tool you can keep in your back pockt when negotioating with sellers.
No matter how competitive the housing market has been these last few years, there is plenty of proof showing that the power of negotiations is starting to return. Connect with a Treeline Realty Agent to see how you can find your new forever home today.
Source: Keeping Current Matters