December 2022 Newsletter

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

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.com 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.com 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.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

…at Keller Williams Success Realty last month.

In our area this month…

We are in the middle of another market shift, but don’t forget that shifts in the market are normal.

This is still a seller's market, but one that's shifting back to balance with the buy side.

Things to remember:

- The right single offer can be better than a multiple offer situation

- Pricing your home appropriately will bring more buyer attention to your home (and ultimately a better sale)

Brown Butter-Cardamom Spitzbuben

Ingredients

  • 1 1/2 cups unsalted butter (12 ounces)

  • 3 3/4 cups all-purpose flour (about 16 ounces)

  • 1/2 teaspoon kosher salt

  • 1/2 teaspoon baking powder

  • 1/2 teaspoon ground cardamom

  • 1/2 teaspoon ground ginger

  • 1 vanilla bean or 1 teaspoon vanilla bean paste

  • 1 1/2 cups packed light brown sugar

  • 1 large egg, at room temperature

  • 2 large egg yolks, at room temperature

  • Powdered sugar, for dusting

  • 3/4 cup apricot, cherry, blueberry, or seedless raspberry jam, stirred until smooth

Instructions

  1. Heat butter in a large saucepan over medium, stirring occasionally, until butter is lightly browned and smells nutty, 6 to 8 minutes. Transfer butter to the bowl of a stand mixer; let cool completely, about 1 hour and 30 minutes.

  2. Stir together flour, salt, baking powder, cardamom, and ginger in a medium bowl; set aside.

  3. Split vanilla bean lengthwise, and scrape seeds into butter. Add brown sugar, and beat on medium-high speed until light and fluffy, about 5 minutes. Add egg, and beat until fully incorporated. Add yolks, and beat until fully incorporated. Reduce speed to low, and add flour mixture in 3 additions, beating well after each addition.

  4. Turn dough out onto a work surface, and knead to make sure all ingredients are incorporated, 1 to 2 minutes. Divide dough in half, and shape each portion into a disk. Wrap each disk in plastic wrap, and chill until firm, about 2 hours or up to overnight.

  5. Preheat oven to 350°F. Remove 1 dough disk from refrigerator, and let stand at room temperature to soften slightly, about 20 minutes. Unwrap dough, and roll between 2 sheets of parchment paper to about 1/8-inch thickness. Using a 2-inch round cutter, cut out cookies, and transfer to parchment paper–lined baking sheets, leaving about 1 inch between cookies. Gather scraps once, reroll, and cut out more cookies. (Refrigerate rerolled dough before cutting if it becomes too soft.) Repeat softening, rolling, and cutting with remaining dough disk, making sure to cut the same number of cookies you cut from the first disk. Using a 1-inch cutter, cut the centers out of half of the cookies. Bake in preheated oven until golden brown around edges, about 10 minutes. Let cookies cool on baking sheets about 30 minutes.

  6. Dust cutout cookies with powdered sugar. Flip remaining cookies over, and spread each with about 1 teaspoon jam. Sandwich with cutout cookies

    Yields 4 dozen.