Tips For Making An Offer In A Buyer's Market
With interest rates trending upward, the real estate market is shifting from a buyer's market to a seller's market. This means that the power is now in the favor of the seller due to a lot of homes for sale and very few buyers. That's why it's worth knowing these tips for making an offer on a home during this time.
Consider Making A Low Offer
Since it is likely that there are no other offers on the home you are interested in, you can make an offer to the seller that is below the asking price. This gives you some room to negotiate since an offer at the asking price will likely be accepted immediately. You can offer the seller what you feel the home is worth and potentially save some money.
Ask To Provide Less Earnest Money
A buyer is asked to provide earnest money when signing a contract to buy a home. This is money that the seller can keep if you decide to walk away from the home without a valid reason. A typical contract allows buyers to not buy the home if there are issues with the inspection or their financing, but other than that, you may be forced to give up that earnest money if you walk away for another reason. It's worth asking if you can provide less earnest money just to be safe. It is likely that the seller will allow it because they have no other offers to consider.
Ask For Credits At Closing
It's likely that your home inspection might find something that is not right with the home. This is an opportunity to ask the sellers for a credit at closing to compensate for whatever repairs need to be made that you didn't know about. Alternatively, a seller can offer to make the repair before you purchase the home so that it is something you do not have to worry about.
Ask For A Home Warranty
Is the home you are looking at on the older side? You could ask the seller to include a home warranty, which will help cover any major issues that come up during the initial months that you are in the home. Home warranties will cover things like appliances suddenly breaking, but will not cover damage due to neglect on your part.
Speak with a home buyers agent in your area for more tips about how to make an offer in a buyer's market.