Many people feel unsure about the housing market right now. Home prices are dropping, and interest rates have risen over the last few months. The market is in a totally different place then where it was a year ago. Or even earlier this year.
So, what does this mean for you the home buyer or the home seller?
Well, if you are a home seller you are learning that the housing market is becoming more balance in the favor of the buyer. So, as a seller you will need to be flexible, and respect the fact that negotiation is back on the table. Buyers are still out looking for homes, and they are ready to haggle.
Buyers are not only looking for sellers to reduce the price of their home, but to also chip in and help with the closing cost. Mostly buyers want the sellers to help buy down the interest rates.
In many cases the buyers that are out in the market now are strong financially, and many are patience and willing to wait. Well at least that has been my experience of late.
Now, if you are a buyer, you are sitting pretty. You are in the cat bird seat! Well let’s say you are in a more pleasing spot then if you were buying a home six months ago.
Buyers could pay a higher monthly premium because of the rise in interest rates. The reduction in home prices will offset part of that rise. If you can try to buy down your interest rate which will serve you well in the long term. Or you can try to get the sellers to pay part of the buy down for you.
I know the market has slowed! I tell any buyers I work with to ask for what they want but don’t assume that sellers will snap up any offer you make. There are other buyers out there. Like always homes that are in good condition are selling, because there are other buyers still in the market looking to close.
We all knew it was going to happen, the housing market was going to take a swing toward balance. It’s here, sellers and buyers get at it.
By R. Jones
