Homebuyers Regain Some of Their Negotiating Power

Posted on Monday, September 19, 2022 in Mortgage Lending

Homebuyers Regain Some of Their Negotiating Power

If you’re thinking about buying a home today, there’s welcome news. Even though it is still considered a sellers’ market, it is a more moderate sellers’ market than last year.

The days of feeling like you may need to waive contingencies, like the findings of an inspection, or pay drastically over asking price to get your offer considered, look to be coming to an end.

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.

Return of Inspections

Over the last two years, more buyers were willing to skip important steps in the homebuying process, like an inspection, to try to win a bidding war. But now, fewer people are waiving the inspection.

The most recent data from the National Association of Realtors shows the percentage of buyers waiving their home inspection is declining. And a recent survey from Realtor.com confirms more sellers are accepting offers that include this condition today.

According to NAR's August study

95% of sellers reported buyers requested a home inspection
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.

Value of Inspections

Aside from price negotiations, an essential part of the process of buying a home is the home inspections. There is where you make sure that a house is fully functional and fits the best of your criteria.

Home inspections act as visual evaluations of properties, from the very top to bottom, and are highly recommended by First National Bank. You have to make sure the property you’re looking into buying is a good investment and not something you might regret.

The seller can provide you with a general overview of the home’s condition, but a home inspection will give you more detailed information. The structure, foundation, plumbing, and any other amenities in the household are inspected and assessed.

Bottomline

When you’re looking at homes to buy, you can sometimes feel rushed and pressured to make a decision. You might not be 100% sure this is the house for you, even if it feels like it. Could there be structural issues or mold that you’re overlooking?

Home inspections solve this problem by giving you reassurance about the property. You’ll become confident you’re make the right decisions, and it can help you further negotiate the final price. When you’re ready to buy, First National Bank’s mortgage lenders can help you get into the home of your dreams.

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