‘Deals to be had:’ Home buyers should ask for these deals while they’re getting high.

The real estate market is finally in favor of buyers, and that means they can walk away with more than just a good deal on a home.

About 42% of homes sold in the last three months of 2022 included some type of buyer’s lien, Redfin data showed, up from 30% in the previous quarter. Such incentives include a down payment on the mortgage, cash for closing costs and renovations, and warranty on furniture. A separate study found that 13.6% of buyers also lowered their listing prices to attract buyers.

For home buyers, the increase in permits means the days of avoiding accidents and inspections are behind them and the will have more buying power when buying a home. But buyers must act quickly, said one expert, because the increased competition may scare buyers away from negotiations in the long run.

“Everyone has motivations and goals. Every market is different, but transactions must be done now, “Monte Miner, real estate agent at Fine Woodwood Propertiestold Yahoo Finance.

This is why it is asked.

More protection

Rick Nazarro of Colonial Manor Realty talks with a pair of interested buyers in the driveway as a couple waits to enter a property he is trying to sell in Revere, MA. (Credit: Blake Nissen for The Boston Globe via Getty Images)

The days of dismissing emergencies like reviews and process inspections are fading into the rearview mirror. However, contract work remains highly competitive depending on your location.

At least 24% of buyers canceled the surprise visit in December 2022, according to the National Association of Realtors. research, up from 16% a month earlier and 19% a year ago. Another 24% of consumers dismissed a special event in December, down slightly from 16% in November and 21% last year.

Home inspections are very important because they can let you know if the home has a crumbling problem before you make a purchase. It can also help you negotiate with the customer, which is increasingly common in today’s market.

“If customers have this short window to buy things where they can have incentives to buy, (they) are more likely to buy where they have the opportunity to think about it, make a visit , a risky investment and don’t rush it,” Jeff Reynolds, trader at Compass and founder of UrbanCondoSpaces.comtold Yahoo Finance.

Mortgage assistance

When mortgage rates rose at their fastest clip in more than 50 years last year, many home buyers are still in the market. opted for a subprime mortgage to ease the financial burden on their home loan.

A down payment is usually a special option that some borrowers use to lower their interest rate by paying a lower amount at closing. Amortization, or mortgages, only have one payment at closing and can lower your interest rate for the life of your loan.

“When the rate was in the high 7s, we saw a 2-1 sale asking for more,” Miner said. “When that happens, the customer is expected to refinance in the next two years in most cases. With rates (in 2023) possibly under 6%, I see that something is an example that can be reduced.

In some cases, a seller may offer to pay points to offer a temporary sale – usually for the first few months of your loan. This can make your mortgage cheaper at the beginning of the loan.

Lower your closing costs

As demand continues, some real estate agents are incentivizing buyers by offering to pay their full closing costs.  (Credit: Getty Creative)

As demand continues, some real estate agents are incentivizing buyers by offering to pay their full closing costs. (Credit: Getty Creative)

One of the biggest expenses a buyer faces when buying a home is paying closing costs. These fees can include fees for appraisers, home inspectors, real estate agents, attorneys and your lender to name a few.

According to Realtor.com, closing costs on a home sale typically total 2% to 7% of the home’s purchase price. This means that a buyer has purchased a home at the listed price $400,000 in December, may have faced a final payment of between $8,000 and $28,000.

Although real estate agents and buyers often split the cost of closing services and fees, these days sellers are more likely to offer to pay more or all of the closing costs. make a purchase.

“One of the things that stopped buyers last year was they said ‘I don’t have enough money for closing costs,'” John Downs, senior vice president at Mortgage Vellum, told Yahoo Finance. “Well, the fact is that the vendors are now paying for you.”

Ask for a discount

Buyers consider a new home during an open house at Plantation.  (Credit: Carline Jean/Sun Sentinel/Tribune News Service via Getty Images)

Buyers consider a new home during an open house at Plantation. (Credit: Carline Jean/Sun Sentinel/Tribune News Service via Getty Images)

Home prices are finally falling from their peaks, and on top of that – an increasing number of sellers are also offering additional price reductions to attract buyers.

The average list price jumped from $369,000 in January 2022 to $449,000 in June — an increase of 21%, Realtor.com data found. By December, the price of the rental house was weakened to $ 400,000, which is about 8.4% higher than the year before.

With current rates at 6.33%, some home buyers are still facing financial difficulties. The cost of financing 80% of a typical home remains 58.9% higher compared to last year, Realtor.com found, leaving some buyers stuck on the edge.

Fortunately, price cuts are becoming more and more common – and asking for a price cut is not scary. In fact, some members are encouraging it.

“Instead of waiting for listing prices to drop, sellers are putting out offers and big discounts and making the buyer make a decision and it seems to be working,” said a Downs, noting that there is a decrease in prices in the Washington, DC area.

For example, the percentage of houses with reduced prices increased to 13.6% in December, from 7.1% a year earlier. Realtor.com said the percentage was higher than before the pandemic, but lower than the percentage seen in 2018 (14.8%).

Downs added, “Sellers are setting the tone of the housing market this year, and buyers are listening.”

Quick action

A subdivision home built by Pulte Homes is seen in Novi, Michigan.  (Credit: Rebecca Cook, REUTERS)

A subdivision home built by Pulte Homes is seen in Novi, Michigan. (Credit: Rebecca Cook, REUTERS)

Home buyers who may want to minimize their negotiating opportunities should act quickly before the spring selling season begins.

According to RedfinThe increase in sales activity in the weeks leading up to January 15 pushed the US home sales price up 0.9% from a year earlier to $350,250 – the biggest increase in the month.

The number of mortgage applications to buy rose 25% in the week ending January 13, the Mortgage Bankers Association found Although this is still down 35% from last year, it is likely that the number of customers will continue to grow as prices drop.

“I have a property listed for $375,000 and we’ve had 20 offers. Two of them are full price, one is above price,” Miner said. “At that time, buyers will not have a chance to get permits on that property.”

Gabriella is a personal finance writer at Yahoo Finance. Follow him on Twitter @__gabriellacruz.

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