If stories of competitive bidding wars among hopeful buyers in recent years have made you nervous about the process of buying a home, you are not alone. Many buyers in the piping hot real estate market of the past two years have found themselves outbid and needing to make multiple offers before being able to buy a house. This process can be stressful and emotional, and sometimes motivated buyers to make concessions they otherwise would not have made.
But there's good news. As the market cools a bit, buyers are finding themselves back in a position of negotiating strength, less likely to be outbid in a competitive multi-offer scenario.
If you are considering buying a home in the new year and looking for homes for sale in the Carson-Tahoe area, we can help. Contact us any time to learn more.
In the meantime, consider these reasons that now may be a better time to buy than last year.
Contingencies are Back
One of the best changes we are seeing in the real estate market right now is the return of contingencies for buyers. In recent years, buyers sometimes felt pressure to waive inspections and appraisals to avoid being outbid by another buyer willing to do the same.
Not all buyers are able, or willing, to do so. If you need to include a contingency in your offer, you no longer have to assume it will make yours less attractive than competing offers.
Contingencies you may want to include with your offer might be:
- A home inspection contingency, so you can find out what the condition of the home is and whether any major repairs are necessary or are likely to become necessary soon. This way, you can negotiate with the seller to cover the expense of any repairs that are discovered, or back out of the deal if you realize the condition of the home is worse that you are willing to handle.
- A home appraisal contingency is required by many lenders, and protects your investment. This allows you to be sure you are not paying more for the home than it is worth, ending up in an upside-down investment from day one.
- A home sale contingency, which is often necessary if you need to sell your current home in order to qualify for the new mortgage.
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Sellers can Offer Help with Closing Costs
Because so many sellers have substantial equity in their homes, thanks to recent increases in home prices over the past two years, you may be able to negotiate for assistance with closing costs. Some of the concessions sellers are willing to make, which won't cost them a dime out of pocket when funded from their equity, include:
- Helping to cover closing costs
- Offering discount points or 2-1 buy downs to offset higher interest rates
- Credits towards new flooring or other home improvements that need to be done
Fewer Buyers Means Less Competition
Overall, now is simply a less competitive time to buy than last year. With fewer buyers on the market, you are more likely to find the home you want and get it for the price you want. Keep in mind that higher mortgage rates are only one piece of the puzzle, and do not have to eliminate your opportunity to buy this year.
Ready to begin looking for homes for sale in the Carson-Tahoe area? Contact us any time to get started.
