Homebuyers have taken a severe sticker shock over the past year and a half – and that is expected to continue with extraordinarily high demand from buyers and an acute shortage of homes for sale.
Fortunately, there are ways to negotiate a better deal when buying a home that can help save you money as well.
Existing homes sold for a median price of $ 359,900 in July, up from $ 305,600 in July 2020, according to the National Association of Realtors.
“Unless a house is overpriced, homes sell within days and with multiple offers,” reports Adam Linder, realtor at Northrop Realty, based in Rehoboth Beach, Del. In fact, houses usually only stayed on the market for 17 days. in July, according to NAR.
In a sellers market, Linder said, buyers need to use smart tactics when formulating and negotiating a housing offer:
- Make a cash offer: Although mortgage rates remain historically low – the average 30-year mortgage rate was 3.05% in mid-October, according to Freddie Mac – nearly a third of home purchases in the United States so far this year have been all done. cash transactions, a Redfin investigation found in July.
Making a cash bid can be a winning bidding war strategy.
“If you pay in cash, you have an automatic benefit because sellers want security,” Linder said. “Sellers want to be sure the sale will go through, and cash buyers can give it to them by forgoing their financing and appraisal contingencies.”