Advice for Today's Home BuyerNegative headlines, inflation and rising mortgage rates have buyers confused about buying a home today.If you’re thinking about buying a home today, there’s
Dated: September 27 2022
Advice for Today's Home Buyer
Negative headlines, inflation and rising mortgage rates have buyers confused about buying a home today.
If you’re thinking about buying a home today, there’s welcome news. Even though it’s still a seller’s market, it’s a more moderate sellers’ market than last year. 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. Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter 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 inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
95% of sellers reported buyers requested a home inspection
67% of sellers negotiated with buyers on repairs as a result of the inspection findings
2. Sellers Are More Willing To Help with Closing Costs
Generally, here in the upstate closing costs range between 2%-3% of the purchase price for the home. 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, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article from realtor.com shows 32% of sellers paid some or all of their buyer’s closing costs.
This may be a negotiation tool buyers will see as they go to purchase a home. Just keep in mind, limits on closing cost credits are set by the lender and can vary by area and loan type.
Work closely with our loan advisor(s) to understand how much a seller can contribute to closing costs in our area.
Having a team of local advisors on your side may be just what you need to guide your search in a new and more affordable direction.
Nathan is an outgoing and energetic addition to the team with years of experience serving families in the non profit sector along with working for a marketing and production agency the past two years.....
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SIMPSONVILLE, S.C. / Oct. 28, 2021 — Weichert, Realtors® - Shaun & Shari Group is proud to announce the addition of Jessica Nichols to its team of talented and dedicated agents.