The days of frenzied sales with waived inspections might be behind us as buyers regain a bit of bargaining power. How can you as the buyer leverage this change to benefit you in the homebuying process? Corken and Company is here for you!
Despite the extremely competitive housing market of the past several years, negotiation is back on the table – for price and contract terms. Homes that sold at or above-asking price peaked at 82% in February and March of 2022 when mortgage rates were below 4% and dropped to 69% for homes that sold within the last month when rates hovered near 6%. By contrast, the share of sellers who sold below asking price jumped from 18% in February and March 2022 to 31% for those sold within the last month.
Inspections and Repairs make a comeback:
A professional home inspection is always a good idea for home buyers, but during the housing market’s peak, many buyers waived this important step to be competitive with their offer. Of those who sold within the last month, 95% reported that the buyer requested a home inspection, up from 82% of those who sold 6-12 months ago. Our team always suggests getting an inspection by a reputable company. As a buyer this will be an important step in your process, and also a welcomed step in the current market.
Not all bad news for sellers:
Despite the shifting market, homes are continuing to sell quickly. In fact, 22% of people who sold within the past month said that their home went under contract in less than a week. This is up from 14% of people who sold six to 12 months ago. As a seller this is still a good market for you!
After two years of the pandemic, sellers’ needs have changed, prompting a search for another home. Of those who sold within the last year:
- 31% were looking for different amenities/features
- 29% found that the home no longer met the needs of their families
- 26% needed a home office for remote work
- 23% wanted to live closer to family and friends
- 20% felt they bought their home in a hurry and/or panic and decided it was not the right home for them
- 17% no longer needed to live near an office
There is a lot of information out right now pertaining to the market. But take advice from the experts, now is still a good time to buy and sell! Let us help you!
Contributions from: https://www.forbes.com/sites/brendarichardson/2022/08/30/bargaining-power-is-back-92-of-recent-sellers-accepted-buyer-friendly-terms/?sh=5b42ed4d303e