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.

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... email me at: alejandra.valine@cbrealty.com

Living in Vernon New Jersey.. see what your lifestyle could be...

Vernon and the immediate area is an outdoor lover’s paradise. Here you’ll find mountain slopes for skiing, snowboarding and mountain biking, challenging hiking trails, one of the best water parks in the state, premier golf courses and resort accommodations.

Set in the Kittatinny Mountains, Mountain Creek offers skiing, snowboarding complete with half-pipe and snow tubing. Summer brings extreme mountain biking at Mountain Creek Bike Park and the 39-acre Mountain Creek Water Park. Mountain Creek also features The Appalachian Hotel and Black Creek Sanctuary, both of which feature luxurious accommodations.

Vernon is also home to the Crystal Springs Resort, which features a premier collection of seven golf courses surrounded by breathtaking scenery. No other New Jersey golf resort can match the experiences provided at Crystal Springs’ award-winning golf courses. Also at Crystal Springs are Minerals Hotel & Spa and the Grand Cascades Lodge, both of which offer spacious accommodations and spectacular mountain views, an award-winning spa, a sports club with seven heated pools and a 6,000-square-foot fitness center, slopeside ski access, family activities, restaurants, catering and meeting venues.

For more information about Vernon attractions or living and investing in Real estate in the area contact me at: alejandra.valine@cbrealty.com

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