Real estate broker is advising home buyers to be 'second in line' when bidding on a house so you can be there to renegotiate 'when that deal falls through'
- Mortgage rate hikes on top of already high prices are pushing out many would-be homebuyers.
- But as buyer competition cools, home sellers are starting to losing their leverage.
A vibe shift is happening in the
Over the past few years, a lack of
As market dynamics begin to change, NYC-based real estate broker
"Inventory is rising and you have more opportunities out there," Eklund told NBC 5 News."I say to my buyers, try to be second in line."
With less people competing for homes, buyers now have more room to negotiate. Data from real estate brokerage Redfin shows that across the country, 14.9% of homes that went under contract in June fell through due to buyer apprehension. With the exception of March and April 2020, June's reading was the highest percentage on record.
Because of this, Taylor Marr, the deputy chief economist at Redfin, says that buyers now have more say-so in their home purchasing decisions.
"The slowdown in housing-market competition is giving homebuyers room to negotiate, which is one reason more of them are backing out of deals," Marr said in a statement to Insider. "Buyers are increasingly keeping rather than waiving inspection and appraisal contingencies. That gives them the flexibility to call the deal off if issues arise during the homebuying process."
Now that the market is shifting in favor of buyers, Eklund says they should strategically approach bidding wars.
"You want to be the second in line so when that deal falls through, the escrow falls through or they can't get the financing, you can maybe even renegotiate your deal to even a lower value," he said.
According to Redfin, an increasing share of home sellers are now lowering their asking price as buyer demand falls due to declining sentiment. The brokerage's data shows that in June, the highest share of sellers on record dropped their list price as
"The housing market isn't crashing, but it is experiencing a hangover as it comes down from an unsustainable high," Marr said, adding that rate hikes will continue to stretch homebuyers' budgets to the point that many more could be priced out.
- Apple to launch new MacBook Pro models next month
- Amazon witnessed record Prime sign-ups during the Great Indian Festival Sale 2022, 68 percent from small towns
- Agnikul to launch Agnibaan rocket before 2022
- BYJU's clears ₹2,000 cr dues to Blackstone in $1 bn Aakash deal
- India installs avalanche monitoring radar in Sikkim
- Amazon Festival Sale
- Rice and Pulses
- IIT Guwahati
- Apple Tablets in Amazon Sale
- Biggest Billionaires
- Sundar Pichai
- Home Loan
- Vinod Shantilal Adani
- Amazon Festival Sale
- Accenture earnings forecast
- India's Richest People
- Best 5G Smartphone
- Rana Kapoor
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World