The real estate market may seem uncertain with concerns over interest rates, affordability, and rising costs of goods and services. These factors have indeed influenced market confidence, leading many to hesitate. However, in times of low confidence, opportunities abound. Incentives are plentiful, and negotiations are at an all-time high.
Both buyers and sellers are looking for favorable deals. Buyers want to negotiate the best terms, while sellers aim to secure the highest possible price. When both parties are intentional about participating in this market, great outcomes emerge.
If you’ve owned your home since 2022, selling in today’s market should not be an issue. While loans with 100% financing may pose challenges based on principal balance reduction, strategic planning can lead to a successful transaction.
Why Buyers Are Winning Right Now Buyers who enter the market with confidence are securing excellent deals. Many are receiving incentives such as:
- Closing cost assistance
- Interest rate buy-downs
- Appliances (refrigerator, washer, dryer)
- Gift cards and furniture allowances
According to the National Association of Realtors (NAR), 72% of sellers provided at least one concession to buyers in 2023, highlighting the increased negotiation power buyers currently have. Additionally, Freddie Mac reports that homebuyers who negotiate interest rate buy-downs can save an average of $200-$300 per month on mortgage payments.
Now is the perfect time for buyers to connect with a lender to explore their financial options. Making a smart investment today can set up a strong financial future for the next 5-7 years.
A study by the Federal Housing Finance Agency (FHFA) found that homeowners who purchased properties during low-confidence markets saw an average appreciation rate of 8% annually over the following five years. This underscores the long-term benefits of entering the market strategically.