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.

 

If you’re ready to jump into the market and take advantage of the increasing supply of homes hitting the Tennessee Housing Market, let’s connect today. The opportunity in the Knoxville market is knocking, will you answer? Give your Hometown Experts a call so you have expert advice on your specific situation during today’s market. 865-693-SOLD (7653)

Hometown realty ryan coleman east tennessee real estate

Real Estate With Ryan
👉 In this episode, Ryan Coleman talks about things to look for when buying a new house. If you want to learn more buying tips be sure to check out the new episode! 👈

 

Check our your homes value by visiting our free home valuation tool here: What’s my home worth

🎙 Join Ryan Coleman Broker/Owner of Hometown Realty and host of REWR every Saturday @ 11am on Talk Radio 92.3 / AM 760 WETR and at 1pm on News Talk 98.7 🎙⁠

Be sure to download the Talk Radio and News Talk apps to listen on the go!
Talk Radio: https://apple.co/37q7lAu
News Talk: https://apple.co/3aHkXth

You can watch past live streams on other Social Media channels:⁠
YouTube: https://bit.ly/3gkhS3U
Facebook: https://bit.ly/3l67kJd
Soundcloud: https://bit.ly/32bvkC9
Apple Podcast: https://apple.co/3j7aomn
Google Podcast: https://bit.ly/3gcSXiE

Hometown Realty is a Proud Sponsor of the Tennessee Volunteers:

Did you know we are giving away free tours of the Tennessee Athletics Departments at UT? If you are one of our great clients give us a call to set up an exclusive VIP tour! For more information click this link! This is completely free, we want to give back to our awesome clients & potential clients!

Check out this article next

Planning to Retire? It Could Be Time To Make a Move.

Planning to Retire? It Could Be Time To Make a Move.

If youre thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could beselling your…

Read Article
About the Author
Ryan Coleman
Ryan is from Richmond Virginia and attended college here in Knoxville Tennessee. He is married to his beautiful wife April, they have one daughter and one son who reside in Knoxville. Ryan is a highly trained, knowledgeable Real Estate Broker and Investor (owning both Residential Investment & Commercial Real Estate). For over 20 years, Ryan has spent much of his time helping buyers and sellers find their perfect dream home, devoting his personal attention during the entire transaction until and beyond closing.