As homebuyer demand has cooled, bidding wars have become a thing of the past. For homebuyers who once worried about having to pay thousands of dollars over asking price: The coast is now clear. Lessened competition could give you the chance to confidently reenter the 2023 housing market.
- You’ll probably see contingencies come back. When the market was red-hot, many homebuyers opted to waive their inspection in order to stand out. But now, the number of buyers forgoing their inspection has dropped to around 20 percent.
- More sellers may agree to concessions. Though overall low inventory levels are still preventing a shift into a buyer’s market, today’s sellers have become much more flexible. Sellers may again offer to pay concessions—paying part of a buyer’s closing costs and other expenses—to help close a deal.
If you’re planning to buy a home this year, you may see your negotiating power increase. While some of this can depend on the supply and demand in your local area, you’re likely to find yourself with more leverage when submitting an offer than you would have a year ago.