By now, you’ve probably noticed the market shift. For a long time, sellers had the undisputed advantage in our housing market; now, things are balancing out. What does this mean for you? Today we’ll discuss our current market landscape and how you can adapt.
Many buyers who wanted to purchase a home a few years ago left the market because they were frustrated with multiple-offer situations and skyrocketing prices. Some even decided to rent for six or 12 months rather than stay in the market. If you’ve worked with any clients like this in the last few years, now is the time to reach out to them again. The market is much better for buyers, but they might not know that.
“Closing costs, due diligence fees, and other negotiating items are back on the table.”
How can you help your buyers shift their mindsets for our new market? It all starts with having a clear understanding. First, you need to have a good grasp of market conditions. This is still a seller’s market, but things are much more balanced than they used to be. Next, you need to make sure your clients understand what this means. Buyers no longer have to compete with 20 offers for a home, and setting aside cash to pay over the appraised value isn’t necessary any longer. If your buyers understand this, they’ll be more likely to head back to the market.
For example, we’ve been telling our buyers that they might be able to ask for home warranties in negotiations. For people who tried to buy during the frenzied market, this will be a huge indicator of where our market is. Closing costs, due diligence fees, and other negotiating items are back on the table, so let your buyers know that this market is much better for them than the old one.
Some buyers might have a negative attitude because they were turned off by the crazy seller’s market. Yes, interest rates are higher than before, but they are still good from a historical perspective. Plus, your buyers will probably save money on the price of the home, which will more than offset their increased monthly payments.
Buyer conditions are currently the best that. If you have questions about this topic or anything else, please call or email us. We are always willing to help!
