Key Takeaways
- There’s good news about the market for both buyers and sellers
- Buyers are starting to recover negotiation tactics on the current market
- Linda Craft Team Realtors is here to give you expert advice on the housing market!
If you want to buy a home right now, there’s good news ahead! Today’s housing market may be labeled as a seller’s market, however it’s much more moderate in comparison to last year. Waiving contingencies or struggling to get your offer considered may be nearing an end!
In this current market, buyers have less competition and more negotiating power than before. This is because buyer demand and bidding wars are becoming less intense. Here are two significant trends that might be what you need to make your way back into the market.
The Return of Contingencies
During the last couple of years, a number of buyers weren’t taking essential steps in the home buying process that are required to win a bidding war. However, things have changed since then, and people are waiving the inspection and appraisal stages.
According to the National Association of Realtors (NAR), the percentage of buyers who are yielding their home inspection and appraisal is going down. A recent survey from realtor.com indicates that more sellers are accepting offers which include these conditions today. NAR’s study in August shows:
- 67% of sellers negotiated with buyers on repairs as a result of the inspection findings
- 95% of sellers reported buyers requesting a home inspection
This evidence shows us that buyers are able to include these conditions in their offers, and negotiate based on the inspection results.
Sellers Are More Willing To Help With Closing Costs
Closing costs generally range between 2% and 5% of the home’s purchase price. Prior to the pandemic, sellers were frequently using the negotiation tactic to cover some of the buyer’s closing costs to alleviate the deal.
With current market shifts and slowing demand, data from realtor.com unveils that this is making a comeback. A more recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This is a common negotiation tool you’ll see as you purchase a home. Limits on closing cost credits are organized by your lender, and vary by state and loan type.
It’s best to work closely with your loan advisor in order to understand how much a seller can contribute to closing costs.
The Bottom Line
Despite the rigorous and competitive housing market of the past several years, current data show us that negotiations are starting to return. This is great news if you’re planning to enter the housing market. To find out exactly what the market is like and achieve your buying or selling goals contact Linda Craft Team Realtors today!