Leave a Message

Thank you for your message. We will be in touch with you shortly.

You May Have More Negotiation Power When You Buy a Home Today

You May Have More Negotiation Power When You Buy a Home Today

Did the frequency and intensity of bidding wars over the past two years make you put your home search on hold? If so, you should know the hyper competitive market has cooled this year as buyer demand has moderated and housing supply has grown. Those two factors combined mean you may see less competition from other buyers.

 

And with less competition comes more opportunity. Here are two trends that may be the news you need to reenter 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 the inspection, in hopes of gaining an advantage in a bidding war.  But now, things are different.

The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection or appraisal is down. And a recent article from realtor.com points out more sellers are accepting contingencies:

“A year ago, sellers were calling all the shots and buyers were launching legendary bidding wars, waiving contingencies, and paying for homes in cash. But now, the shoe is on the other foot, and 92% of home sellers are accepting some buyer-friendly terms (frequently related to home inspections, financing, or appraisals), . . .”

This doesn’t mean we’re in a buyers’ market now, but it does mean you have a bit more leverage when it comes time to negotiate with a seller. The days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.

2. Sellers Are More Willing To Help with Closing Costs

Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.

Today, data suggests this is making a comeback. A realtor.com survey shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.

Bottom Line

Despite the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back to the table. To find out how the market is shifting in our area, let’s connect today.


Recent Blog Posts

Stay up to date on the latest real estate trends.

SF Market Update - November 2024

The median single-family home price rose 7.7% month over month, while condo prices increased 9.2%. We expect prices to contract over the next three months, which is th… Read more

East Bay Market Update - November 2024

Months of Supply Inventory still indicates a sellers’ market in the East Bay for single-family homes, but for condos, MSI implies the market now favors buyers.

Don’t Miss Out on the Growing Number of Down Payment Assistance Programs

Imagine being able to qualify for $17,000 toward your down payment—that’s a big boost, especially if you’re looking to buy your first home.

The Majority of Veterans Are Unaware of a Key VA Loan Benefit

According to Veterans United, only 3 in 10 Veterans realize they may be able to buy a home without needing a down payment.

Renting vs. Buying: The Net Worth Gap You Need To See

On average, a homeowner’s net worth is nearly 40 times higher than a renter’s.

San Francisco Market Update - October 2024

The median single-family home price rose 7.2% month over month, while condo prices increased 11.6%.

East Bay Market Update - October 2024

Affordability improved dramatically in Q3 2024 with the monthly mortgage payment for a 30-year loan down 10%.

Why Home Sales Bounce Back After Presidential Elections

With the 2024 Presidential election fast approaching, you might be wondering what impact, if any, it’s having on the housing market.

Planning To Sell Your House in 2025? Start Prepping Now

By starting your prep work early, you’ll give yourself plenty of time to get your house market-ready by the end of the year.

Let’s Talk

You’ve got questions and we can’t wait to answer them.