The housing market is shifting. What has been a seller's market is moving toward a buyer's market. To successfully buy or sell a house in today's transitioning market, it's important to understand your power as a home buyer or seller. Let's look at what you need to know to succeed in today's changing housing market.
Home sellers have had the most power in the housing market over the last couple of years. Home sellers have set well-above-average home sale prices and successfully secured that amount or more. Home buyers have played by the seller's rules, competed against offers from multiple buyers, and avoided asking for contingencies.
It's normal for the housing market to shift over time, which we're witnessing now. Home buyers are starting to have an advantage over home sellers. Soon home buyers will have more negotiating power while sellers will find themselves conceding to the demands of buyers.
The outcome of a shifting market leaves many home buyers and sellers confused. An experienced real estate agent who has witnessed housing shifts over the last few decades will help you manage home buying or selling expectations, so you get what you need from purchasing or selling a home.
More Homes For Sale
Buyers can look forward to more homes coming on the market because sellers realize they missed the peak opportunity to sell and want to get the best price for their home before it becomes a buyer's market. A large inventory of homes for sale also allows buyers to be picky about which house they consider purchasing. Because of this pickiness, sellers who don't upgrade their homes before putting them on the market may find their houses getting overlooked by buyers.
More Negotiating Power For Buyers
Home buyers will have more negotiating power as the housing market shifts. Buyers will need to avoid making lowball offers. Instead, they'll need to work closely with their real estate agent to negotiate the terms of the contract. For example, buyers will find more flexibility in asking for repairs to be made before finalizing the purchase of the house.
Home Sellers Adjusting Home Prices
As home sellers, your real estate agent will provide you with comparables (comps), so you can price your home competitively. A home priced for today's housing market will sell quickly vs. remaining on the market due to unrealistic expectations. Sellers who jump on the opportunity to sell their homes now will beat the upcoming surge in housing inventory. Get those homes listed for a competitive price so you don't have to deal with your home getting lost in the surge of housing inventory.
Don't Wait to Buy a Home
Waiting to buy a house can be a gamble as mortgage rates continue to increase. Buyers need to focus on an affordable monthly payment. Due to rising interest rates, you'll be paying more for a monthly mortgage in a month than you'll pay now, even if housing prices stabilize. Talk to your mortgage broker or real estate agent about monthly mortgage payment changes and expectations.
This national housing market shift, where buyers will start to have the advantage over sellers, can get confusing. Buyers will question what a fair offer is and what can be negotiated. Sellers will get frustrated over lower home sale profits and buyer contingencies. Utilize the skills of an experienced real estate agent to keep you on track as you buy or sell a house in a shifting market. You'll be glad you did.