Today’s Market Is Getting More Buyer-Friendly—Here’s How
Lighter Side of Real Estate • October 29, 2022
Between low inventory, fierce competition, and all-time high home prices, there’s no denying that the past few years have been tough on buyers.
But things are changing—and in many ways, the real estate market is starting to shift towards buyers.
So what, exactly, are those shifts? A recent video from realtor.com outlined some of the more positive realities of buying a home in today’s real estate market, including:
- Many markets are cooling down. Just about every market across the US has been red-hot for the past few years. But in many markets, things are starting to cool off—and that cooling off presents a serious opportunity for buyers. If you’re not sure where your desired market stands, talk to your real estate agent; they can give you insight into what’s happening in your market—and whether things have cooled down enough to make it an ideal time to buy.
- Buyers have more leverage. Thanks to the frequency of bidding wars over the past few years, buyers have had to do everything they could to make their offers more attractive—including waiving contingencies and forgoing concessions. But as markets cool down, buyers have more leverage—which means that if you’re buying in today’s market, there may be room for you to ask for certain contingencies and concessions, like asking the sellers to cover closing costs or making the deal contingent on you selling your current home.
- More options on the market. For the past few years, homes have been flying off the market almost as quickly as owners can list them—and often for higher than the asking price. But again, markets are changing. While properly priced homes are still selling quickly, many homes (particularly if they’re priced high) are spending more time on the market. This leads to more options on the market, more opportunities to find and buy a house, and more opportunities for buyers to negotiate (since the longer a home sits on the market, the more likely the seller will be to negotiate).
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How To Make Sure Your Sale Crosses the Finish Line If there was one simple step that could help make your home sale a seamless process, wouldn't you want to know about it? There’s a lot that happens from the time your house goes under contract to closing day. And a few things still have to go right for the deal to go through. But here’s what a lot of sellers may not know. There's one part of the process where some homeowners are hitting a road bump that’s causing buyers to back out these days. But don’t worry. The majority of these snags are completely avoidable, especially when you understand what’s causing them and how to be proactive. That’s where a great agent (and a little prep) can make all the difference. What’s Causing Some Buyers To Back Out The latest data from Redfin says 15% of pending home sales are falling through . And that’s not wildly higher than the 12% norm from 2017-2019. But it is an increase. That means roughly 1 in 7 deals today don’t make it to the closing table. But, at the same time, 6 out of 7 do. So, the majority of sellers never face this problem – and odds are, you won’t either. But you can help make it even less likely if you know how to get ahead. You might assume the main reason buyers are backing out today is financing. But that’s actually not the case. The most common deal breaker today, by far, is inspection and repair issues (see graph below): Here’s why that’s a sticking point for buyers right now: Buyers are already stretched thin from high prices and challenging mortgage rates, so they don’t have the appetite (or budget) for unexpected repairs. If they’re going to spend all that money, they want to get something that’s move-in ready. They don’t want to take on another high-cost project themselves. They have more homes to choose from, so if yours seems like a hassle or if you’re not willing to fix something, they can just move on. The sellers with the best agents have heard about this shift and they’re doing what they can to go in prepared. Enter the pre-listing inspection. What’s a Pre-Listing Inspection? It’s exactly what it sounds like. It’s a professional home inspection you schedule before your home hits the market. And while it’s not required, the National Association of Realtors (NAR) explains why it could be a valuable step for some sellers right now: “To keep deals from unraveling . . . it allows a seller the opportunity to address any repairs before the For Sale sign even goes up. It also can help avoid surprises like a costly plumbing problem, a failing roof or an outdated electrical panel that could cause financially stretched buyers to bolt before closing .” Think of it as a way to avoid future headaches. You’ll know what issues could pop up during the buyer’s inspection – and you’ll have time to fix them or decide what to disclose before you put your house on the market. This way, when the buyer’s inspector walks in, you’re ready. No surprises. No last-minute panic. No deal on the line. Is It Worth It? Generally speaking, a pre-listing inspection costs just a few hundred dollars. So, it’s not a big expense. And the information it gives you is invaluable. But before you make that investment, talk to your local agent. In some markets, it may not be worth it. And in others, it may be the best move you can make. It all depends on what’s happening where you are and what’s working for other local sellers. If your agent recommends getting one, they’ll also: Help you decide which issues to fix Prioritize repairs based on what buyers in your area are focusing on Connect you with trusted professionals to get the work done Ensure you understand local disclosure laws That small step could save your deal (and your timeline). Bottom Line So, if there was one simple step that could help make your home sale go according to plan, would you do it? If you’d rather deal with surprises on your terms (not with the clock ticking under contract), let’s talk about whether a pre-listing inspection makes sense for your house. It may be worth it so you can hit the market confident, prepared, and in control.
