I’m going over why buyers are so flaky in this market, from high home prices, negotiations, and poor lending practices.
Right now, there’s an epidemic sweeping the housing market: Buyers flaking on deals at the last minute. If you’ve tried to sell your home recently or know someone who has, you’ve probably heard a story about the perfect deal, only for it to fall apart right before crossing the finish line. Why is this happening, and what can you do about it as a seller? And if you’re looking to purchase a home, how can you make sure you can actually follow through on your offers? Today, I’m breaking down why deals are so shaky right now and how you can come out on top in this weird market:
1. Homebuyers are in a tough position. Currently, the economy is showing signs of weakness, credit debt is higher than it has ever been, and interest rates are higher than they’ve been in decades. On top of all that, home prices haven’t come down significantly to compensate. This means that buyers need to walk a thin financial line to purchase a home, and while many of them would love to be flexible with their terms and offering prices, they just can’t afford to make concessions.
2. Sellers don’t have an advantage like they used to. Real estate is hyper local, so what’s going on in your market might not be exactly what’s happening just a few blocks away. However, it’s generally true that buyers have more leverage at negotiations than they used to. Inventory is up across the country, and while most markets aren’t outright favorable to buyers, they still have more power than they did a few years ago. No matter what sort of market you’re in, I recommend going into negotiations willing to compromise instead of stonewalling on specific issues.
3. Many buyers aren’t properly approved by lenders. The average lender only does the bare minimum to prepare their clients for the open market. As a result, many buyers aren’t even pre-qualified, let alone pre-approved. I recommend sellers work with buyers who are at least pre-qualified so you can have confidence they’ll follow through on the deal. Meanwhile, buyers should try and get pre-approved so they can have a quick sale and gain a leg up over their competition.
If your lender hasn’t properly pre-qualified you or you have questions about this topic, please call or email me. This market can be tough, but we can navigate it together. I look forward to hearing from you!
