There is a lot to be said about today’s real estate market. Home prices have fallen and there’s more inventory, but mortgage rates remain high.
So as a buyer, how do you determine your buying power?
Home shoppers often ask me, what should I do in today’s market?
Should I wait to buy or take advantage of the lower prices and more inventories despite higher mortgage rates?
My answer is: If you can financially take advantage of this market, then yes, you should buy now and here’s why.
In today’s market, buyers have all the leverage to negotiate with sellers. Most homes on the market today are sellers who need to sell, not just looking to see what price they can get on their home.
This means they may be more willing to offer more concessions like closing cost credits, rate buy-downs, or repair costs.
More importantly, sellers are no longer asking buyers to remove all their contingencies with an offer like we have seen the last couple of years.
Combining all of this together gives a buyer more power and leverage to purchase a home and can outweigh the costs of high mortgage rates. In fact, right now with creative financing options it can actually be more affordable to purchase a home than it has been in the past few years.
Also, after purchasing, buyers can always look into refinancing when rates eventually come down. Of course, it is best to consult your trusted real estate agent to discuss what is happening in your local market area.
Please feel free to reach out to me and my team with any questions so we can help you make an informative decision in today’s market.
