After several years of a robust seller’s market throughout the pandemic, buyers are now regaining some bargaining power, according to a new survey from realtor.com®.
The survey, which questioned 449 people who sold their homes in the past 12 months, found that the overwhelming majority of respondents, 92%, accepted some buyer-friendly terms. Of that cohort, one-third dropped the price because the home didn’t meet the appraisal, and one-third paid for all or some of the buyer’s closing costs.
In addition, the number of buyers asking for repairs based on the inspection results more than doubled in recent months, while the number of sellers who refused to make repairs dropped to zero. Further, 95% of sellers who sold in the last month made some repairs to the property prior to listing as opposed to 71% who sold six to 12 months ago.
Other key findings:
- Of the sellers who accepted some buyer-friendly terms, nearly half accepted some contingencies, like appraisal or home inspection, in the contract.
- Of those who sold within the last month, 95% reported that the buyer requested a home inspection, up from 82% of those who sold six to 12 months ago.
- Despite the shift in the dynamic between buyers and sellers, homes are still selling quickly. Twenty-two percent of people who sold within the last month said their home went under contract in less than a week.
The takeaway:
“Our survey shows that the overheated housing market of the past two years, which predominantly favored sellers, is beginning to regain a sense of normalcy, which is welcome news for homebuyers,” said George Ratiu, manager of economic research, realtor.com®. “The combination of higher mortgage rates and prices have noticeably cooled demand over the first half of the year. In addition, as more homeowners have been listing their properties, rising inventory is motivating more of them to resort to price cuts in order to successfully close transactions. At the same time, even as we are seeing a shift toward a more buyer-friendly market, it’s worth noting that the majority of recent sellers are still satisfied with the outcome of their home sale.”
To view the full report, click here.
