Over the past couple of years, the Tulsa real estate market has been a madhouse for buyers. Today, it is still considered a seller’s market. But signs indicate that it may be starting to favor the home buyer again. How? In some subtle (and some not-so-subtle) ways, according to a Realtor.com survey.
How the Real Estate Market Favors the Home Buyer
List Price is Negotiable
For the last two years, high buyer demand brought about bidding wars on many properties. That meant that a home buyer needed to offer more than the list price to even be considered a serious option for sellers. Today, almost one-third of buyers paid under the list price. Part of this is due to fewer buyers and part of it is due to sellers overpricing their homes to begin with. Always consult with your Tulsa REALTOR® about current comps in the area before drafting your offer letter to the seller. There is no need to overpay for a property simply because the seller is asking too much.
More Price Reductions
Again, sellers cannot just ask for a high price and expect buyers to climb over each other in order to pay it. Home values appear to be leveling out and, in some areas, decreasing. If a home buyer needs to finance their purchase, the bank requires the completion of an appraisal. If the appraised value comes in lower than the agreed-upon sale price, the lender will not approve the full amount of the loan. At that time, either the seller needs to lower their price or the buyer must come up with the difference out of pocket. With inflation on the rise, home buyers feel more cash-strapped than ever before. Sellers will come up with this problem again and again with other buyers if they refuse to lower their prices and end up losing out on the sale. Fortunately, it appears that sellers understand this. Thus, approximately 30% of them issued a price reduction to make a deal.
Contingencies Are Back
For the last couple of years, real estate agents told their clients to limit contingencies to the bare minimum. Low inventory and high demand kept crazy requests in check. While appraisal, home sale, and inspections continued to be included in the typical sales agreement during a seller’s market, buyers now see that over 90% of sellers are willing to pay some or all of a buyer’s closing costs as well as consider a more flexible closing timeline to accommodate the buyer’s schedule.
Sellers Are Paying for Repairs When Asked
Not too long ago, many sellers offered up a “what you see is what you get” attitude regarding repairs. And buyers felt reticent to request them because they might lose out on sealing the deal. But that has shifted. Every single person surveyed said that the seller agreed to pay for some if not all of the repairs requested. So, it does not hurt for you to request either that certain repairs be completed before the close of sale or ask for a credit at closing to help pay for them once the home is yours. Even so, do not go overboard on your repair requests. Squeaky hinges and loose door knobs? Let those go. Crumbling roof? You might want to include that cost in your negotiations.
