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Homebuyers are taking back their bargaining power, survey shows

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Homebuyers are recovering somewhat Purchasing power as the market changes Industry experts have revealed that sellers have been “overwhelmingly” favored over the past two years.

In a recent survey conducted by Realtor.com, 92% of homeowners who sold their home in the past year said they “accepted buyer-friendly terms.” About 41% accepted some contingent contracts related to appraisals, home inspections, home sales and financing.

According to Realtor.com, the data suggests that “negotiations are back on the table” on home prices and contract terms.

Mortgage rates soar as home prices hit new record

Homes sold above asking price peaked at 82% in February and March. Mortgage interest rates remain at 4%69% of homes sold above asking price last month as mortgage rates stayed near 6%. Mortgage buyer Freddie Mac said his 30-year fixed rate last week had him at 5.55%.

Meanwhile, the percentage of homeowners who sold below their asking price rose to 31% last month from 18% at the beginning of the year, according to property listings websites.

Homes for sale in Orlando, Florida, Tuesday, December 8, 2020. (AP Photo/John Raoux, File/AP Newsroom)

Buyers are getting more and more picky. Nearly all surveyed homeowners (95%) who sold their home in the past month said the buyer requested an inspection. That’s up from his 82% of sellers who sold 6-12 months ago.

Rising interest rates could ‘crush’ housing market demand, experts warn

Last month, the number of buyers seeking home repairs after a home inspection more than doubled from 6 and 12 months ago.

In contrast, the number of sellers refusing to pay for repairs has dropped from 8% six to 12 months ago to zero.

“The overheated housing market of the past two years, largely dominated by sellers, is beginning to return to a sense of normalcy,” Realtor.com economic research manager George Latiou said in a statement. It’s welcome news,” he said. .

house sales

A For Sale sign in front of a house in San Rafael, California on March 18, 2022. (Justin Sullivan/Getty Images/Getty Images)

Ratiu said rising mortgage rates combined with soaring prices “Demand has cooled significantly First half of this year. ”

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With more homeowners listing their properties now, “increased inventory increases the incentive to resort to price cuts to make the transaction successful,” he added.

Despite this market shift, the majority of recent sellers are still satisfied with the outcome of their sale, according to Ratiu.

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