Leave a Message

Thank you for your message. We will be in touch with you shortly.

Explore Our Properties

You May Have More Negotiation Power When You Buy a Home Today

The Gentry Team December 15, 2022

 
Did the frequency and intensity of bidding wars over the past two years make you put your home search on hold? If so, you should know the hyper competitive market has cooled this year as buyer demand has moderated and housing supply has grown. Those two factors combined mean you may see less competition from other buyers.
 
And with less competition comes more opportunity. Here are two trends that may be the news you need to reenter the market.
 

1. The Return of Contingencies

Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or the inspection, in hopes of gaining an advantage in a bidding war.  But now, things are different. The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection or appraisal is down. And a recent article from Realtor points out more sellers are accepting contingencies:
 
“A year ago, sellers were calling all the shots and buyers were launching legendary bidding wars, waiving contingencies, and paying for homes in cash. But now, the shoe is on the other foot, and 92% of home sellers are accepting some buyer-friendly terms (frequently related to home inspections, financing, or appraisals).”
 
This doesn’t mean we’re in a buyers’ market now, but it does mean you have a bit more leverage when it comes time to negotiate with a seller. The days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
 

2. Sellers Are More Willing To Help with Closing Costs

Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
 
Today, data suggests this is making a comeback. A Realtor survey shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
 

Bottom Line

Despite the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back to the table. To find out how the market is shifting in our area, let’s connect today.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Why Buying or Selling a Home Helps the Economy and Your Community

You’re not just meeting your own needs, you’re also making a positive impact on the community.

What Everyone’s Getting Wrong About the Rise in New Home Inventory

You may have seen talk online that new home inventory is at its highest level since the crash.

History Shows the Housing Market Always Recovers

Every slowdown in the past has eventually given way to more activity, and this one will too.

Should You Still Expect a Bidding War?

If concerns about bidding wars have been holding you back, it may be time to take another look.

From Frenzy to Breathing Room: Buyers Finally Have Time Again

If you tried to buy a home a few years ago, you probably still remember the frenzy.

Condos Could Be a Win for Today’s Buyers

For first-time buyers, they can be a smart way to get into homeownership without stretching your budget.

More Contracts Are Falling Through. Here’s How To Get Ahead

When you sell a house, the last thing you want is for the deal to fall apart right before closing.

Is It Better To Buy Now or Wait for Lower Mortgage Rates? Here’s the Tradeoff

After the most recent jobs report came out weaker than expected, the bond market reacted almost instantly.

Are These Myths About Buying a Newly Built Home Holding You Back?

If you’ve ruled out new construction based on price alone, it’s time to take another look.

View All

Work With Real Locals

If working with a team that truly gives back to the community matters to you, we would make a great match. Reach out today to get started on buying or selling your home with a team that knows Moore County inside and out. With decades in the industry and an exceptional team of sales specialists, The Gentry Team has sold more homes than any other real estate firm in Moore County—and more than the total volume of most real estate companies in the region. This level of experience is unmatched, allowing us to help you sell your home for top value while anticipating and handling every detail along the way. We work collaboratively, combining our collective expertise to achieve the very best results for our clients. It is an approach built on trust, teamwork, and proven success. When you work with real locals, you get real results.

Contact Us
Get in Touch
Contact Details

THE GENTRY TEAM

(910) 295-7100

[email protected]



5 Chinquapin Rd
Pinehurst NC 28374