You read that right. It's actually a great time to be a buyer right now. After years of a strong sellers market and buyers getting beaten up by skyrocketing home prices and competitive offer situations - it's their moment to settle into the driver's seat and take over a little bit of control with the home buying process.
Let me share with you some Pros and Cons of being a buyer in today's market
THE CONS (ok there really is only one)
The Interest Rate
- You've heard the stories. 20+ offers for a so-so home. Yes, this was the norm not more than 9 months ago. Buyers paying $100k+ more than the list price on a home. Even if the interest rates were at a historic low, you can do the math...paying that much over list still means higher monthly payments for the buyer and on a home they probably felt pressure to purchase. Now, as a buyer, you often are the only offer for a seller to consider and that means more negotiating power for you!
- When there is less competition, there are less things you as a buyer have to give up. In months past, buyers were having to waive their right to inspections, the right to ask for repairs, and sometimes needing to come up with more cash down or even paying with cash outright for a home. Buyers today are able to get some of that control back and those contingencies are a buyers tools to ensure they're purchasing the right house for them.
Lower List Prices
- We have consistently seen list prices adjust to the market conditions. With longer days on market, sellers know their number one tool to help get their home sold is to set their list price to true market condition value. We're also seeing homes in better "market ready" condition in order to attract more buyer to their listing.
Increase in Seller Incentives
- Sellers are getting creative when it comes to attracting buyers. We're seeing more seller incentives such as offering to pay a buyers closing costs or prepaid expenses. Sellers are offering to help buyers "buy down" to a lower interest rate in some cases.
So overall, we're finding today's market to be a strong one for a buyer. Your conversations shouldn't just include talk about the interest rates, but rather taking a look at the big picture and looking at the pros of being a buyer as well!