If you’re thinking about buying a home in South Florida today, I’ve got good news.

Even though it’s still a seller’s market on paper, it’s a more moderate seller’s market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered, are over.

Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing. So if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to reenter the market.

Number one: The return of contingencies.

Over the last two years, more buyers were willing to skip important steps in the home buying process like the appraisal, or the inspection, to win a bidding war. Since May of 2022, we personally haven’t had any deals waive an appraisal or inspection which is how it should be.

According to an August study by the National Association of Realtors, 95% of sellers reported buyers requested a home inspection and 67% of sellers negotiated with buyers on repairs as a result of the inspection findings. This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.

Number two, sellers are more willing to help with closing costs.

In South Florida, depending on which county you’re buying in, closing cost can range between 3% and 4% of the purchase price of the home. Before the pandemic, it was very common for sellers to pay for some of the buyer’s closing costs. This almost never happened during the last two and a half years.

Today, as the market shifts and demand slows, data from realtor.com suggests that this is making a comeback. A recent article shows that 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you see as you go in to purchase a home.

Depending on the type of loan you’re getting, you can get up to 6% of your closing costs paid with 3% being a great ballpark to request. The market’s different in every city and it’s important to analyze hyperlocal trends. Highly desirable neighborhoods and homes are still getting multiple offers. But homes that need a little more work or aren’t fully updated are sitting a little longer as they should.

To find out how the market has shifted in your neighborhood, DM us today for a confidential conversation.

Posted by Andy Mandel on
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