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Real estate experts explain how to navigate the market

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Future homeowners who need to move now, despite the skyrocketing home prices, aren’t entirely out of luck. Soaring mortgage interest ratesrecently surpassed 7% for the first time in 20 years.

A real estate expert told FOX Business that there are still some advantages to entering the market now.

For one, according to Claire Trapasso, executive news editor at Realtor.com, competition is waning, so “buyers don’t have to make decisions so quickly.”

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“Competition has shrunk as fewer buyers are able to qualify for mortgages and buy the homes they want,” Mr. Trapasso said. “So buyers are less likely to get caught up in costly and emotionally draining things. bidding war. “

A price reduction sign in front of a home in Glendale, California, November 27, 2007. (David McNew/Getty Images/Getty Images)

As the housing market heats up and competition heats up, homeowners have offered excessive asking prices, lowered inspection and evaluation requirements, and closed their homes within a month, Fox Business previously said. reported.

Now it’s a buyer’s market, according to Lauren Canziano, an associate broker at New York City-based Brown Harris Stevens.

“They don’t have five seconds to jump through hoops anymore,” Cangiano says. “Things stay in the market longer so they can make better informed decisions.”

Ultimately, buyers will have an “opportunity to do more research,” Cangiano said, but that wasn’t the case in 2021 when homes were “popping off the shelf.”

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Trapasso said buyers are also encouraged negotiate as much as possible Add appraisal and home inspection contingencies to your offer.

sale sign

A “Homes For Sale” sign marking an existing single-family home for sale on October 4, 2006 in Park Ridge, Illinois. (Photo by Tim Boyle/Getty Images)

This allows buyers to renegotiate if the house doesn’t value as much as they have offered, Trapasso said.

“If a professional home inspection uncovers an expensive issue, you can even get back to the negotiating table,” she added.

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Trapasso also said buyers could even attempt to bid below the asking price if the house has been on the market for some time.

construction

Contractors work on a home under construction in Antioch, Calif., Tuesday, June 14, 2022. (David Paul Morris/Getty Images/Getty Images via Bloomberg)

Likewise, Cangiano says sellers understand what’s going on in the world, which makes it easier to negotiate prices.

“In my opinion, this is the time you should … get deep into buying and get yourself the best deal,” she said.

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If New constructionThe buyer can even ask the seller or builder to cover closing costs or improve the property.

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