The balance of power in the housing market is officially tipping a bit. For the first time in years, buyers are gaining some leverage.
Virtually everyone who sold a home in the past year — 92% of sellers — accepted some buyer-friendly terms, according to a Realtor.com survey.
In a press release summarizing the findings, George Ratiu, manager of economic research at Realtor.com, says:
“Our survey shows that the overheated housing market of the past two years, which predominantly favored sellers, is beginning to regain a sense of normalcy, which is welcome news for home buyers.”
Higher mortgage rates and prices are cooling demand, and inventory is rising. Some sellers are even cutting their prices in hopes of getting a sale.
So if you are planning to sell a home soon, here are some things you should expect to do to make your property more competitive.
1. Accept some contingencies in the contract
Recent home sellers who accepted this buyer-friendly term: 41%
Many buyers in recent years were willing to waive certain contingencies simply in hopes that doing so would land them a home in an ultra-competitive market.
But as the housing market veers back toward normalcy, contingencies are returning. That means more buyers are demanding the right to amend or cancel deals based on factors such as information stemming from appraisals and home inspections.
2. Drop the price if the home doesn’t meet appraisal
Recent home sellers who accepted this buyer-friendly term: 32%
After watching neighbors sell homes at record prices in recent times, having to settle for a lesser offer can be tough. But that is increasingly the reality for sellers in many housing markets.
For more, check out “10 Housing Markets With the Most Sellers Dropping Prices.”
3. Pay for some or all of the buyer’s closing costs
Recent home sellers who accepted this buyer-friendly term: 32%
Sometimes, you have to sweeten the pot to make a sale. Agreeing to pay your buyer’s closing costs is one way to entice a would-be buyer to take the leap in a cooling market.
Other buyer-friendly terms
Today’s sellers also may have to agree to some other terms. Based on the experience of those who sold their home in the past year, you may also have to agree to these concessions which were accepted by more than a quarter of sellers:
- Be flexible on the ideal timeline for closing: 30%
- Pay for repairs to the home after the appraisal: 29%
- Accept that it is not possible to rent the home back after close even if you ask to: 28%
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