Rates are continuing to trend higher, giving many home buyers pause about their purchase. But rising rates are just the tip of the iceberg. Beneath the surface, the housing market is shifting in favor of home buyers. Prices are falling, competition is dwindling, and sellers are doing anything to reach the closing table. The power is yours – what do you want to ask of your sellers? Here are some factors you can negotiate.
Home Price – If the seller has a good real estate agent, they’ve likely been coached about the current market and buyers’ expectations. Now is a great time to buy if you’re looking for a discount. If you’re working with a real estate agent, they’ll be able to use these factors when considering what price to offer on a home:
- Recent comparable sales
- Condition of the home
- Find out why the seller is moving
Closing Costs – Your down payment is not the only cost you have when buying a home. Closing costs are often anywhere between 3-6% of the home price. Asking the seller to contribute to these costs can reduce the amount of money you would need to bring to closing, making it easier to purchase a home.
Rate Buydown – Sellers may offer to buy down your rate to help close faster. When a seller agrees to this, they are making a one-time payment into your escrow account to pay for the points for the term of the loan. In return, you as the buyer pay a lower monthly payment for the buydown period.
Repairs – Does the home you want to make an offer on need work done? This would be a great time to request that the seller make these repairs as part of the contract. They can make the repairs prior to closing or offer a credit at an agreed amount.
Now is a great time to buy a home if you are looking for a deal.
Are you ready to start your home search? Reach out today to get the process started!
Sources: Realtor The Washington Post