The summer season is nearly over, which means that the temperatures are about to chill off here in Oakland County, Michigan. And whilst there’s no assure, it looks like the housing market may also cool together with it—as a minimum barely. in step with a recent article from realtor.com, many experts assume that, while the fall shopping for season may be competitive, it won’t be quite as frenzied as the spring or fall.
One indicator supporting that projection is the tempo of rate increase. consistent with the item, the country wide median home charge hit $385,000 the week finishing August 14 (the very best on document). That price represented a 8.2 percent boom year over 12 months—a particular boom in fee, however notably less than the 17.2 percentage increase from April 2020 to April 2021. stock is also beginning to increase (in step with information from the country wide affiliation of REALTORS®,1.32 million houses have been to be had for sale in July 2021—a 7.3 increase from June)—and the greater stock is to be had inside the fall, the less difficult the house search technique will be for shoppers.
So, what does this imply for you? There’s no denying that fall is shaping up to be a competitive season for real property—however with slowing fee boom and growing inventory, it may prove to be much less competitive than it’s been for quite a while.
In a seller’s market, demand and competition for properties is high. This gives seller’s a clear advantage—and because of that advantage, they’re typically not willing to budge on the price of their home. And if you ask them to come down on price? They’ll often go with another buyer.
But just because it’s not advantageous to ask sellers to bring down their home price doesn’t mean you can’t ask them for anything. A recent video from realtor.com outlined concessions sellers may be more agreeable to during the home purchase process—even when the market is on their side—including:
- Home repairs. If, during the home inspection process, you discover the property needs some sprucing up, it’s typically appropriate to ask the sellers to either tackle the repairs themselves before closing or, if they’d rather you manage repairs, to offer a discount to cover the costs.
- Closing costs. Sellers may not be willing to come down on price. But they’re sometimes willing to help cover closing costs, which can range between 2 percent and 7 percent of the home’s purchase price.
- Home decor and furnishings. Are you in love with the stainless steel refrigerator in the kitchen? The sofa in the living room? The painting in the upstairs hallway? If so, you can ask the seller if they’d be willing to leave those items behind—and include them in the home purchase. (Just make sure to talk to your lender, as including furnishings and decor in the home sale may change the terms of your loan.)
So, what does this mean for you? If you want to successfully buy a home in today’s seller’s market, it’s probably not in your best interest to ask the seller to bring down the price. But that doesn’t mean you can’t ask them to work with you on anything—and even if they won’t budge on price, understanding which concessions sellers may be agreeable to (and asking for them!) can ultimately help you save money on your home purchase.
Most experts predict that following a seven-year period of economic growth the US economy is headed towards a recession (most likely sometime in 2020). But while The Great Recession devastated the housing market, house shoppers remain optimistic about how the market will handle a potential recession in the coming years.
Expect A Recession But Remain Optimistic
According to a recent survey from Realtor.com, nearly 70 percent of home shoppers said they expect a recession to hit the US economy sometime in the next three years (by 2022). But despite the fact that most believe a downturn is looming, many remain optimistic about the housing market, with 41 percent of home shoppers predicting the market would fare better than it did in 2008.
The experts agree. “When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn. The same record low inventory levels that have made buying a home so difficult recently will likely protect home prices in the next recession,” said Realtor.com’s chief economist Danielle Hale in the article.
If you’re thinking about buying a home, don’t be nervous. There might be talk of an upcoming recession (and, obviously, you’ll want to do your own financial due diligence), but the optimism about the housing market from consumers and experts alike is a good sign.
If you’re considering buying a home, ask any real estate agent worth their salt and they’ll tell you: NOW is the time to do it.
The real estate market is seemingly changing by the day, and if you want to get a great home for a great price, making a move now is in your best interest; conditions a year from now (or even six months from now) aren’t likely to be as hospitable.
And why is that? Why shouldn’t you, if you’re interested in buying a home, wait? Why is NOW the time to make a move?
In today’s Oakland County Michigan housing market it is important now more than ever for home seller offers to respond to a buyers offer for purchase of their home, usually the time frame would be within twenty four hours which allows for the home seller offer to have plenty of time to be reviewed,considered and possibly allow time for the listing agent to review with their home seller as well. Although the twenty four hours is the standard, there are times that this is not possible as some home sellers are out of town,family issues or other events that may prevent them from being able to respond within the time frame which would require your real estate agent to write an extension which would allow more time for the review of the home sellers offer.
Although the timing may change for your sellers offer to get reviewed and the home buyer will most of the time understand that this is a process and their offer may take a little longer to get an answer, there are other issues to look out for. Unfortunately we have home sellers that have multiple offers in hand and seem not to be in any hurry to accept and of the seller offers that they have and you may wind up as a home buyer getting into a highest and best offer situation, its always best if your buyers agent ask beforehand if their are other offers on the particular home your trying to purchase. Most realtors will tell you if they have multiple seller offers on a particular property. As your realtor we will inform you on the best ways to handle this situation if it arises while presenting your offer the the sellers agent.
Lets Breakdown The Sellers Offer Process
When a home owner receives a legitimate home seller offer in writing, the seller can accept the offer, reject it, make a counteroffer, or do nothing. While the home owner is not legally bound to respond, if a seller doesn’t respond in a timely fashion, the buyer might become irritated and lose interest in the property.
Protection For Home Buyer and Seller Offers
Most real estate contracts contain an expiration date. If the seller doesn’t respond to the seller offer by the specified date, the agreement becomes null and void, unless the buyer agrees to reopen negotiations
Advice For Both Home Buyer and Home Seller With Offers
As a seller, your response time might defer depending on market conditions. Responding quickly makes sense in a down market, whereas responding slower in a thriving market could give the seller more time to receive multiple offers. A good practice for both buyers and sellers is to respond to any offer or counteroffer quickly and decisively unless circumstances warrant otherwise.
Remember buying or selling a home is one of the most important financial decisions you can make in a lifetime. It would be my pleasure to assist you in all of your home buying and home selling needs here in Oakland County, Michigan, please feel free to call me anytime 248-790-5594