If you’re thinking about buying a home today, here’s some welcome news. Even though it’s still a sellers’ market, it’s a more moderate now than even earlier this year. The days of feeling like you need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing. So, if bidding wars were the biggest factor that kept you on the sidelines, here are two trends that may be just what you need to re-enter the market.
1. The Return of Contingencies
Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. A recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study: 95% of sellers reported that buyers requested a home inspection, while 67% of sellers negotiated with buyers on repairs as a result of the inspection.
All of our recent sales have included home inspections.
2. Sellers Are More Willing To Help with Closing Costs
Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was not uncommon to see buyers ask sellers to help with some of their closing costs. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com that uses the results of a national survey suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be an option available to you when you purchase a home, although we have not experienced it yet with any of our recent clients.
The extremely competitive housing market of the past few years seems to be easing a bit. The data suggests that the days of over the top offers with no contingencies are waning and sellers now have to negotiate with buyers. This is good news if you’re planning to enter the housing market.
For more information about buying or selling, please request our Fall Guides. The video below explains what you can learn.
…and to find out how the market is shifting, let’s connect at 508-360-5664 or firstname.lastname@example.org. We’ll share with you the latest data, as well as our recent experience as sellers and buyers ourselves.
Mari and Hank