Buyers Are Regaining Some of Their Negotiation Power in Today’s Housing Market
Hesitating on buying a home? Did you know that it’s actually more of a seller’s market than a buyer’s market than last year.
In today’s market, you have more power to negotiate as a buyer and have less competition than usual. Bidding wars and buyer demand is increasing this year. Here we are giving you two trends that you may need to re-enter the market:
Return of Contingencies
People are now waiving the inspection and appraisal whereas over the past couple years, more buyers were willing to skip important steps in the homebuying process.
The National Association of Realtors (NAR) show in their latest data in appraisal declining and the percentage of buyers waiving their home inspection. Realtor.com shows in their recent survey that more sellers are accepting offers that include these conditions today. Their August study shows:
“95% of sellers reported buyers requested a home inspection
67% of sellers negotiated with buyers on repairs as a result of the inspection findings”
This study shows that buyers are able to include more of these conditions in their offers today and based on the outcome of the inspection, will negotiate as needed.
2. Sellers Are More Willing to Help With Closing Costs
Before the pandemic hit, many sellers negotiated the buyer’s closing costs to please them and have a smooth transaction. This hasn’t happened as much since COVID took affect. Closing costs usually range between 2% - 5%.
In today’s market, the demand has slowed. Data from Realtor.com shows that 32% of sellers pay some or all of their buyer’s closing costs. Limits on closing cost credits are set by your lender and can vary by state and loan type. To understand how much a seller can contribute to closing costs in your area, work with me today!
Bottom Line
Despite the competitive housing market, our data today is starting to come back to the table. This means that this is good news for you if you plan to enter the housing market. Contact me today to find out how the market is shifting in your area! (310) 519 -7670