As a buyer, you ought to have less competition and greater negotiation power. This is because buyer demand and bidding battles are less intense this year. Therefore, if bidding wars were the main reason keeping you away from the market, the following two trends could be what you need to get back into it.
1. The Receipt of Variables
To win a bidding battle, more buyers during the past two years have been prepared to forego crucial phases in the home-buying process, such as the appraisal or inspection. Few individuals are now deciding to forgo the examination and evaluation, nevertheless.
According to the National Association of Realtors (NAR) most recent statistics, fewer purchasers are choosing to forego a home inspection and appraisal. More sellers are now accepting bids with these stipulations, according to a recent realtor.com poll.
This proves that purchasers are now more equipped to include these requirements in their bids and to engage in necessary negotiations based on the inspection findings.
2. Sellers’ Willingness to Contribute to Closing Costs
Closing fees typically represent 2% to 5% of the home’s buying price. Before the pandemic, it was a standard bargaining strategy for sellers to pay for a portion of the buyer’s closing fees to improve the terms of the purchase. This didn’t frequently occur during the two years peak buyer frenzy.
Today, according to statistics from realtor.com, this is resurfacing as the market changes and demand decreases. According to recent research, 32% of sellers covered all or part of the closing fees for their buyers. You may use this as a negotiating tactic while buying a house. Remember that your lender may restrict closing cost credits, which might differ by state and loan type. To learn how much a seller can pay for closing costs in your location, consult your loan advisor attentively.
Despite the last several years’ intense competition in the home market, data from today shows that discussions are beginning to return to the table. If you intend to enter the home market, this is fantastic news. Contact your neighborhood real estate adviser right now to learn more about how the market is changing in your region.